Milwaukee-based ARI Network Services Inc., which provides sales software and marketing tools for dealers, distributors and manufacturers, reported growth in both revenue and profit in the fourth quarter.
The company recorded net income of $458,000, or 3 cents per diluted share, up from $368,000, or 2 cents per diluted share, in its fiscal fourth quarter.
Revenue was $12.2 million in the fourth quarter, up from $10.9 million in the same period a year ago. Operating income was $942,000, up from $686,000 last year.
For the full year, ARI reported net income of $1.7 million, up from $1.1 million in 2015.
Full-year revenue was $47.7 million, up from $40.4 million last year. Operating income was $3.5 million in 2016, up from $2.3 million in 2015.
ARI leaders said its higher profit was due in part to the integration of acquisitions the company completed in 2015, leading to expanded margins and improved cash flow. ARI also invested in product development and operational scale during 2016.
“I am proud of the ARI team who have worked hard to consistently deliver improving performance throughout the year,” said Roy Olivier, president and chief executive officer of ARI. “We continue to focus on executing our strategy, and the company’s financial performance in the fourth quarter and fiscal 2016 (is) representative of our continued ability to deliver outstanding results. In the fourth quarter, I am delighted to report that our annualized churn rates trended down to 13.1 percent, the lowest rate in the last seven quarters. This gives us further confidence in our ability to grow organic revenues at a faster pace as we head into fiscal 2017.”