Quadrant 4 Systems Corporation Reports Record First Quarter Results
July 23 2012 - 8:30AM
Marketwired
Quadrant 4 Systems Corporation (Quadrant) (PINKSHEETS: QFOR)
reported its financial and operational results for the first
quarter ending March 31, 2012. The full filing will be available on
our website (www.quadrantfour.com) and also can be seen at:
http://xml.10kwizard.com/filing_raw.php?repo=tenk&ipage=8373038
Financial Highlights for the 1st Quarter ending March 31,
2012:
REVENUES - Revenues totaled $6,727,639
compared to $5,434,993 for the same period during 2011. The
increase in revenues of $1,292,646, or 24% over the previous first
quarter, was primarily due to the acquisition of Quadrant 4
Solutions, Inc. (formerly MGL 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 - Cost of revenue totaled
$5,316,123 compared to $4,318,874 for the same period during 2011.
The increase in cost of revenue of $997,249, or 23% over the
previous first quarter, was due primarily to the inclusion of cost
of revenue from the Company's acquisition of Quadrant 4 Solutions,
Inc., effective March 1, 2011. Cost of revenue is comprised
primarily of the direct costs of employee and contract labor and
related expenses.
GROSS MARGIN - The gross margin percentage
remained approximately at 21%.
SELLING, GENERAL AND ADMINISTATIVE EXPENSES
- Selling, general & administrative expenses totaled
$731,916 compared to $355,423 for the same period during 2011. The
increase in selling, general & administrative expenses of
$376,493, or 26% over the previous first quarter, was due to the
inclusion of selling, general & administrative expenses from
the Company's acquisition on March 1, 2011.
NET RESULTS - The Company reported a net
loss of $857,428 for the three months ending March 31, 2012
compared to net loss of $167,607 for the same period in 2011. The
increase of $689,821, or 411% over the previous first quarter, in
the net loss was due to increased amortization and derivative
expenses, in the current period as compared to the prior
period.
EBITDA - Earnings Before Interest, Taxes,
Depreciation and Amortization (EBITDA) for the three months ending
March 31, 2012 decreased by $81,096 or 11% over the previous first
quarter as a result of increased first year integration and
administrative expenses incurred in the acquisition of a new
business entity on March 1, 2011.
Dhru Desai, Chairman of the Board and
Chief Financial Officer stated, "With the filing of our year-end
results and this report for the first quarter of 2012, we are
gratified that Quadrant 4 Systems is current will all filings and
we have fulfilled all our SEC filing obligations. We are pleased
with the modest quarter over quarter growth in the revenue numbers
for this reporting period, despite the fact that historically 1st
quarter in our markets tend to be the slowest period in the
year."
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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Investor Contact: Investor Relations Quadrant 4 Systems
Corporation (732) 798-3000 Email Contact