Milwaukee-based website, software and data solutions provider ARI Network Services Inc. has reported revenue of $8.2 million for the first quarter of 2014, up 37.3 percent from $5.9 million in the same period last year.
Net income was $25,000, or $0 per share, down from $113,000, or $.01 per share in the first quarter of 2013.
“I am pleased that we are on target with the integration of 50 Below, and we are making investments to grow revenue,” said Ray Olivier, president and chief executive officer of ARI. “We believe that it is the right time to invest in growing revenues versus maximizing EBITDA or cash flow. During the first quarter of fiscal 2014, we invested 30.1 percent of revenue in sales and marketing versus 20.6 percent for the same period last year. Early indications are that these investments are having a positive impact, as we are seeing significant year over year growth in new sales.”
Recurring revenues were $7.7 million, up 57.7 percent from the first quarter of 2013. Overall gross margin was 80.9 percent in the first quarter, up from 76.3 percent at the same time a year ago.
“The company showed improvement in both its gross margin and recurring revenue as a percent of total revenue,” Olivier said. “We expect to continue to make investments in sales and marketing this year to the extent we achieve a reasonable rate of return on those investments, while improving EBITDA performance over last year.”
