Park City Group, Inc. (NYSE Amex: PCYG), a Software-as-a-Service provider of unique supply chain solutions for retailers and their suppliers, today announced recent developments and financial results for the fiscal year 2011 first quarter ended September 30, 2010.
- Subscription revenues increased to over $1.5 million in 1QFY11, up by 9% from prior year
- Supplier “backlog” of approximately 300 at end of quarter
- Retailer hubs at end of quarter were 26, up by 3 from June 30, 2010
- Eighth consecutive quarter of positive non-GAAP EBITDA
- Delivered positive non-GAAP net income and EPS before dividends
- Continued positive operating cash flow and debt reduction
- Common stock commences trading on NYSE Amex
Commenting on the financial results, Randall K. Fields, Park City Group’s Chairman and CEO, said, “In addition to the milestone of our national exchange listing, we are pleased to report that very meaningful progress was achieved for our business during the first quarter of fiscal 2011. Subscription revenues increased by 9%. We continued to generate positive operating cash flow and non-GAAP net income as well as reported our eighth consecutive quarter of positive adjusted EBITDA. Moreover, it is important to note that while we maintained these profitability measures, our focus this last quarter has been on process improvement and scalability enhancements to support our next significant phase of growth.
“During the first quarter, we identified areas for significant enhancements to a number of our operational processes that will support our planned growth, ranging from a new contracting process to a new accounting system. By leveraging these upgrades, we believe we’ll be positioned to accommodate the increasing influx of customers without commensurate increases in overhead. At the end of the first quarter of fiscal 2011, our retail customers (“hubs”) had grown to 26, a substantial increase as compared with 18 as of July 2009. It is clear that we have not fully exploited the revenue potential of these hubs and their suppliers (“spokes”). As a result of additional retail customers and the focus on internal process improvement, we currently have a “backlog” of approximately 300 supplier connections. For comparison purposes, historically the largest number of supplier connections in any year was 100. Given the first quarter’s scaling activities, we plan to accelerate our connections from 25 in the current quarter to in excess of 100 by the fourth quarter of this fiscal year, so long as the quality of those implementations achieves our standards.