ARI Network Services Inc., a leading provider of technology-based retail solutions for automotive dealers, distributors and manufacturers, today posted its results for the fiscal second quarter ended Jan. 31, 2010, posting a 35 percent revenue increase and strong operating results.

Revenues for the quarter were reported at $5.4 million, a 35 percent hike from $4.0 million reported for the second quarter of 2009.

Operating income increased 9 percent to $329,000 for the second quarter of 2010, compared to $303,000 for the second quarter of 2009.

Net income increased to $176,000, or $0.02 per share, for the second quarter of fiscal 2010, compared to $56,000, or $0.01 per share, for the second quarter of fiscal 2009.

The company’s ability to post positive results in the midst of a bleak economy stems from strong sales and services.

“The strong operating results we posted in our first fiscal quarter have continued into the second quarter. In addition to the growth resulting from our April 2009 acquisition of Channel Blade Technologies, we posted strong organic sales growth for the quarter, in spite of the tough economic conditions,” Roy W. Olivier, president and CEO of ARI stated in the press release. “The organic results come from new sales of our current services, including our most recent offerings SearchEngineSmart™ and PartStream™, as well as continued high levels of renewals for marketing services and catalog subscriptions. These factors were partially offset by a decline in non-strategic professional services revenue, which remains negatively affected by the state of the economy. The continued growth of our marketing services can be attributed to the tangible value we bring to our customers.”

For the first six months of fiscal 2010, revenues increased 33 percent to $10.8 million for the first half of fiscal 2010, compared to $8.1 million for the same period last year.

Operating income increased 12 percent to $668,000 for the first half of fiscal 2010, compared to $594,000 for the same period last year.

Net income increased 8 percent to $338,000, or $0.04 per share, for the first half of fiscal 2010, compared to $312,000, and also $0.04 per share, for the same period last year.

Brian E. Dearing, chairman and interim CFO of ARI, said the growth signifies the company’s dedication to strategic acquisitions and dedication to product development.

“We are pleased with the continued growth in operating income, which I believe is a reflection of our ability to effectively integrate acquisitions and to grow during the current economic downturn,” Dearing stated. “We have driven significant synergies in the integration of last year’s Channel Blade acquisition, increasing pro forma operating income by $370,000 for the second quarter and $763,000 year to date, versus the same periods last year. It is also important to note that we have increased our investment in product development versus last year’s second quarter,” Dearing stated.