Park City Group, Inc., a developer of patented, innovative retail supply chain solutions and services, announced its financial results for the first quarter of this year. Revenue increased 118% to $2.503 million, from $1.149 million in the comparable quarter in 2008, and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) increased 150% to $213,000 compared to $(422,000) in 2008.
Operating expenses for the quarter included a $1,457,383 non-cash charge related to impairment of capitalized software acquired in connection with acquisition of Prescient, in addition to approximately $75,800 in non-recurring costs incurred in connection with the consummation of the merger. According to the press release, operating expenses are expected to significantly decline as a percentage of revenue due to cost reduction measures initiated during the quarter.
Including the impairment charge to capitalized software, and interest, taxes, depreciation and amortization, net loss for the first quarter totaled $2,035,944, or $(0.21) per common share, compared with a net loss of $289,610 in the quarter ended March 31, 2008, or $(0.03) per common share.
â€œThe combined results from Park City and Prescient reported in the recently completed quarter are solid indicators that the anticipated benefits resulting from the consummation of the merger have been achieved. The financial results actually exceeded our guidance provided in our last quarterly conference call, and are a positive reflection of our ability to successfully integrate the operations,â€ said Randall K. Fields, Park City Groupâ€™s Chairman and CEO. â€œThe early results from our collaborative sales and marketing efforts, together with the operational efficiencies gained during the quarter, position the combined company to further increase sales and realize our objective of achieving profitability.â€