ARI Network Services, a Milwaukee-based provider of software of solutions that connect consumers, dealers, distributors, and manufacturers in selected vertical markets, reported fiscal third quarter net income of $210,000, or 3 cents per share, down from $541,000, or 7 cents per share in the same quarter a year ago.
The decline was largely due to a $433,000 gain on the disposition of a component of the business recognized in the third quarter of fiscal 2011 that did not recur in fiscal 2012.
The company’s total revenue for the quarter increased 6.7 percent to $5.7 million from $5.4 million a year earlier.
Roy Olivier, president and chief executive officer of ARI, said, “We are pleased with the results of the quarter in regards to top line revenue growth. Our fiscal 2012 recurring revenue has increased to 84.0 percent of total revenue, compared to 81.4 percent last year, and we reduced our rate of churn by 15 percent over this same period. These improvements resulted in an increase in recurring revenue of nearly 8 percent. We have signed on two new resellers, added over 100 new customers and signed a deal with a national retailer to use our catalog content in their 1,200 service centers, all of which will contribute to recurring revenue growth.”