Revenues Increase 46% Due to Significant Growth in Subscriptions, Services and License Sales
PARK CITY, UT November 19, 2007 Park City Group, Inc. (OTCBB: PCYG) today announced financial results for the first quarter ending September 30, 2007. For the first quarter 2008, the Company increased revenues by 46% to $854,264, which does not include a gain of $200,000 for patent activity. This compares to revenues of $585,895 for the quarter ending September 30, 2006. The increase in revenues is due to the growth in all new business areas including software sold on subscription, professional services, and license sales.
Net loss for the first quarter 2008 was $654,724 compared to a net loss of $544,064 for the same quarter in 2007. Net loss was largely due to promotional efforts associated with increased activity in international markets, intellectual property defense, stock registration and regulatory fees, new employee related costs, and software costs capitalized in 2007 that were expensed in 2008.
First Quarter Fiscal Year 2008 highlights include:
- The Company expanded its Supply Chain Profit Link engagements to 51 Category Units with 12 Retailers
- The Company has 15 Suppliers in its SCPL portfolio including some of the best known brand names in consumer packaged goods.
- The Company began the process of implementing a scan based trading pilot with an internationally known Retailer
- The Company added noted dairy industry veteran Robert Allen to its Board of Directors
- The Company promoted John Merrill to Chief Financial Officer
- The Company added several key employees in its business metrics, sales, and account service divisions
Commenting on the quarters’ results, Park City Group’s Chairman and CEO, Randall K. Fields said, “We’re off to a great start for the upcoming year. Every piece of the business is accelerating; subscription revenues are up, SCPL trials and conversions are showing positive traction, and our current results for licensing and service revenues are also growing. The work that we are doing through our newest product, Supply Chain Profit Link, continues to uncover and generate enormous economic opportunities for our retail customers and we are adding top-tier suppliers to our growing list of customers.”
Mr. Fields continued, “We are experiencing increased interest from non-US based entities. We are also currently in the process of a very substantial expansion of an existing tier-one customer relationship. In addition to maximizing the Company’s traditional software business, we are monetizing the value of our intellectual property portfolio by partnering with other companies for use of our patented technology.
Our first quarter results continue to reflect the ongoing investments that we are making in staff and systems. We anticipate that our current level of expenditures is adequate in the near term. We are quite optimistic about the current quarter and are anticipating a strong year.”
Investors can continue to track the Company’s progress by reviewing the monthly SCPL updates on the investor pages of the Park City Group website at www.parkcitygroup.com.