ARI Network Services reports 3Q resultsPosted on
Wisconsin-based ARI Network Services said revenue rose 44 percent to $8.2 million in its third quarter, which ended April 30, compared with the same period last year.
Gross margin for the quarter was 77.1 percent, compared with 75.9 percent for the same period last year, ARI said this week in announcing third-quarter results.
The company reported a net loss of $571,000, or 5 cents a share, for the quarter, compared with a profit of $210,000, or 3 cents a share, for the same period last year, primarily because of a non-cash loss of $682,000 that the company said was related to the early repayment of debt and a $420,000 impairment charge to a long-lived asset.
In November, ARI acquired the assets of the retail division of 50 Below Sales & Marketing, a provider of eCommerce websites to the powersports, automotive tire and wheel aftermarket and medical equipment industries. Purchased out of bankruptcy, it generated an operating profit during the quarter, its second under ARI’s control.
“We were able to generate a profit from the 50 Below operation in the second quarter of our ownership,” ARI president and CEO Roy W. Olivier said in a statement. “For the most recent fiscal year prior to the acquisition ended July 31, 2012, the 50 Below operations lost approximately $4 million on $9 million revenue. Integration activities will continue over the next nine to 12 months, and we expect the 50 Below operations, as well as our combined operations, to become increasingly more profitable.”