Armada Data Corporation (TSX VENTURE: ARD) is pleased to report
that its interim financial results for the quarter ended August 31,
2009 have now been filed on Sedar and are available to view on the
Company's website www.ArmadaData.com as well as on Sedar at
www.Sedar.com.
Highlights for the Quarter compared to the same quarter last
year
-- Net income increased to $156,298 from $45,381; an increase of 244% or
1.2 cents per share
-- Revenue increased to $746,695 from $471,992 last year; an increase of
58%
-- Operating income (before amortization and stock-based compensation)
increased to $179,873 from $56,294 last year; an increase of 220% or 1.3
cents per share
-- Dealer Services revenue increased 112%
-- Insurance Services revenue increased 72%
-- Retail Services revenue increased 44%
-- Advertising/Marketing Services revenue increased 23%
-- Company plans to increase yearly dividend. Amount to be determined at
year end.
Record profits of 1.2 cents per share for the quarter ended
August 31, 2009 were achieved as the Company reported its highest
revenue and net income in the Company's history.
Overall revenue grew to $746,695; an increase of 58% from
$471,992 a year earlier. Net income increased to $156,298 or 1.2
cents per share from $45,381 a year earlier; an increase of
244%.
Operating income (before amortization and stock-based
compensation) increased to $179,873 or 1.3 cents per share from
$56,294 a year earlier; an increase of 220%.
Four of the Company's five divisions experienced significant
growth.
Dealer Services and Retail Services grew 112% and 44%
respectively, primarily as a result of increased site traffic
derived from a very successful advertising and marketing campaign
using Google AdWords and other media advertising. Armada will be
continuing its advertising efforts with Google and other mediums in
an effort to further increase its market share. Current market
share at quarter end was approximately 3.5% of retail new car
buyers in Canada. Armada looks to increase its market share to
10%.
Insurance Services revenue increased 72% primarily as a result
of market acceptance of Armada's new "ACV" Actual Cash Value
insurance services product which is a complementary additional
product developed by Armada targeting its existing customers.
In 2003 Armada set a new industry standard in claims settlement
with its 43r.ca insurance services outsourcing product, which on
average saved insurance Companies $1000 per claim on total loss
incidents when a vehicle was 3 years old or newer. Armada has been
developing a new ACV insurance service product to participate in
the claims settlement business with cars that experience a total
loss that are now 3 years or older; a market space Armada estimates
to be 10X larger than the market space of its 43r.ca product.
Armada is currently servicing 26 Canadian insurance companies
with its 43r.ca insurance product including 8 of the top 10
insurance companies. In early 2009, Armada began offering its new
ACV product to its existing insurance customers and is experiencing
positive market acceptance after 18+ months in development and 6+
months of product testing.
Armada looks to report further progress regarding market
penetration of its new ACV product in the coming months.
Advertising/Marketing Services revenue also increased 23% as a
result of increased site traffic derived from the success of
Armada's advertising and marketing campaign, again attributed to
both the Google AdWords advertising campaign and other media
advertising. In this area, Armada looks to further increase its
market share.
Subsequent to the first quarter, the Company declared a dividend
in the amount of $0.005 per common share to all shareholders of
record as at September 1, 2009. Based upon the results of the first
quarter, it is the Company's intention to increase its yearly
dividend. Amount to be determined at year end.
"After 10 years of operations, I am pleased to report a very
successful first quarter. All of our major business divisions
posted impressive gains. Our online advertising campaign delivered
the best results in Armada's history and our new ACV insurance
services product is gaining acceptance with our existing insurance
customers which is in a very large market space for us; 10 times
larger than our current service was targeting. We believe after 10
years we now are now beginning to see the success that our business
holds. For that I thank my entire team and look forward to
reporting continued success to our shareholders in the coming
quarters," commented Paul Timoteo, President and CFO.
Paul Timoteo, President of Armada Data Corp. will record a
"Beyond The Press Release" on the Company's official Investor
Relations Site at http://agoracom.com/ir/ArmadaData, in which the
above developments will be discussed in detail. The recording is
expected to be available on or after November 2, 2009.
Outlook and Investor Highlights
Armada Data continues to work to attain a number of important
fiscal and operational achievements, which include:
-- Retail Services continues to grow despite perceived negativity in
overall market conditions
-- Dealer Services continues to outpace all divisions in growth
-- Insurance Services is entering its busiest time of the year
-- ACV Service provides opportunity for significant revenue generation
-- Company remains 100% debt free and is in the best cash position in its
history
-- Management is focused on National sales growth, expense management and
increasing profitability
-- An independent audit committee and mandate remains in full force to
ensure quality of corporate governance to provide shareholders the
confidence they deserve
Management believes that Armada Data Corporation, with its
financial resources, is poised for significant growth as it grows
its niche markets in all aspects of its Internet and traditionally
based businesses.
It is expected that Management can meet these objectives
regardless of economic conditions. Although a robust economy can
lead to a greater number of cars sold and thus a potentially larger
market opportunity for all of Armada's divisions, a down economy
has proven to have an equally positive impact as both individuals
and insurance companies become more cost conscious.
About Armada Data Corp.
Armada Data Corp. is a profitable web-enabled Automobile
Information Services Company providing accurate and real-time
pricing data, to institutional and retail customers on a
fee-for-service basis, through developing, owning and operating
automotive related websites and providing information services to
its clients.
Armada Data Corp shares are listed on the TSX Venture exchange
under the trading Symbol ARD. Armada has 13,598,831 shares
outstanding.
Additional information relating to Armada Data Corporation is
filed on SEDAR, and can be viewed at www.sedar.com.
This news release contains forward-looking information within
the meaning of Canadian securities laws, including statements
relating to revenue, earnings, customer demand, penetration and
increases to market share and anticipated growth. Forward-looking
statements are based on estimates and assumptions made by Armada in
light of its experience and perception of historical trends,
current conditions and expected future developments, as well as
other factors Armada believes are appropriate. Many factors could
cause the actual results of Armada to differ materially from those
expressed or implied by the forward-looking statements, including,
without limitation, reduced spending by customers and risks
relating to general economic conditions. Readers should not place
undue reliance on Armada's forward-looking statements. Armada
undertakes no obligation to update or revise any forward-looking
information, except as required by law.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the Policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Armada Data Corporation Mr. Paul Timoteo President
& CFO 1-866-453-6995 ext 224 PT@ArmadaData.com Investor
Relations Integrated Investor Relations Inc. Mr. Richard Buzbuzian
647-501-3290 rbuzbuzian@integratedir.com Public Relations Hudes
Communications International Mr. Nelson Hudes 905-660-9155
Nelson@HudesCommunications.com
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