Quadrant 4 Systems Corporation Reports Record Revenues and EBITDA in 2011 Year End Financial Results
July 13 2012 - 4:45PM
Marketwired
Quadrant 4 Systems Corporation (Quadrant) (PINKSHEETS: QFOR)
reported its financial and operational results for the year end of
2011. The full filing can be seen at
http://www.sec.gov/Archives/edgar/data/878802/000118518512001458/quadrant4systems10k123111.htm
Year End Financial Highlights for Twelve Months
ended December 2011:
Revenues: Revenues for the year ended
December 31, 2011 were $29,141,433 compared to revenues for the
year ended December 31, 2010 of $15,233,596. The increase in
revenues of $13,907,837 was primarily due to the acquisition of
Quadrant 4 Solutions, Inc. in the first quarter of 2011 and the
expansion of the core businesses to include SaaS and other
solutions tools. Revenues were comprised of service-related sales
of software programming, consulting and development services.
Cost of Revenues: The increase in cost of
revenues of $9,381,488 was due to the increased number of
consultants and employees resulting from the acquisition of assets.
Cost of revenues is comprised primarily of the direct costs of
labor and related expenses.
General and Administrative Expenses: The
increase in general and administrative expenses of $1,362,301 was
due to the increased staffing, management and overhead costs
associated with the acquisition of assets. General and
administrative expenses are comprised primarily of management and
administrative payroll and related costs, office costs, overhead,
staffing and support costs of the Company.
Interest: The increase of interest costs
of $904,177 was due to the additional long term debt of the
seller's note payable and the increase of the note payable --
revolver on the increased accounts receivable resulting from the
acquisition of assets and derivative expenses.
Net loss decreased as a result of the overall increase in
revenues due to the various acquisitions.
Earnings before interest, taxes, depreciation and amortization
("EBITDA") for the year ended December 31, 2011 was $4,613,753 as
compared to $1,449,615 on December 31, 2010.
Dhru Desai, Chairman of the Board and
Chief Financial Officer, stated, "Although we experienced a long
delay in completing the audit to be able to publish our year-end
results, we are gratified that that our financial results were
better than originally anticipated. Issues with scheduling and
other issues arising from the transition from our prior audit firm
contributed to the prolonged delay. Since the Company announced the
appointment of Sassetti, LLP, as its new independent registered
public accounting firm, I can confidently say that we are now on
the right track in terms of a more efficient and timely
dissemination of our financial filings for the future."
Again, to view the Company's current Form 10-K, please visit
www.sec.gov or click on the following link:
http://www.sec.gov/Archives/edgar/data/878802/000118518512001458/quadrant4systems10k123111.htm
About Quadrant 4 Systems Corporation
Quadrant 4 Systems Corporation delivers end-to-end information
technology solutions to its clients through a unique blend of
consulting, software development & maintenance, cloud based
products and technology from its global delivery centers. The
company currently focuses on Financial Services, Health Care,
Retail, Manufacturing and Telecommunication sectors with a broad
spectrum of services and technology practices that include ERP,
SCM, CRM, e-Commerce, m-Commerce, SFA, Microsoft, Java and Legacy
platforms, BI/DW, testing, platform migration, web technologies and
others. The company plans to enter the IT enabled and managed
services sector and cloud based services through business
acquisitions and/or combination opportunities in the near future to
further execute its articulated business strategy.
Forward-Looking Statements This release
contains forward-looking statements which are subject to the
inherent uncertainties in predicting future results and conditions.
Any statements that are not statements of historical fact
(including statements containing the words "believes," "plans,"
"anticipate," "expects," "estimates," and similar expressions)
should be considered to be forward-looking statements, within the
meaning of Section 27A of the Securities Act of 1933, and Section
21E of the Exchange Act of 1934, as each is amended, for which the
Private Securities Litigation Reform Act of 1995 provides a safe
harbor. Certain factors (including but not limited to those risk
factors identified from time to time in our filings with the
Securities and Exchange Commission as well as changes in economic
conditions; outcome of negotiations; changes in the Company's
access to necessary capital; outcome of litigation; volatility of
capital markets; variability and timing of business opportunities;
changes in accounting policies and practices; the effects of
internal organizational changes; adverse state and federal
regulation and legislation; and the occurrence of extraordinary or
catastrophic events and terrorist acts; or other unforeseen changes
in circumstances) could cause actual results and conditions to
differ materially from those projected in such forward-looking
statements. We do not undertake any obligation to release publicly
revised or updated forward-looking information, and such
information included in this release is based on information
currently available and may not be reliable after this date.
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