ROLLING MEADOWS, IL--(Marketwire -07/23/12)- Quadrant 4 Systems Corporation (Quadrant) (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:
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.
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.
Quadrant 4 Systems Corporation