ProLink Holdings Corp. last week announced financial results for the first quarter, ended 31st March 2008.
“We are quite pleased by the continued strong growth in Domestic System Sales,” said Lawrence D. Bain, CEO of ProLink Solutions. “Despite a challenging economic environment, customers in the United States continue to select ProLink Systems at record rates, as we further increase our leadership position in the industry.
“We are particularly encouraged by the fact that the 40% year over year growth generated in domestic sales during the first quarter follows the 90% growth in domestic system sales reported in the fourth quarter of 2007.
“The strong domestic results have helped to mitigate the impact of the loss of the distributor in Europe. Our ability to tightly control costs, as a result of the cost reduction programs we implemented in late 2007 and the first quarter of 2008, helped ProLink report improved results. We believe the full benefits of our cost reduction programs will be realized in Q2 and the remainder of 2008.
“We are confident that we have successfully implemented initiatives during Q1, 2008 that will continue to improve our results,” continued Mr. Bain. “As we announced recently, we have completed agreements with our new distributor for France, Sport Business Group and anticipate announcements of other distributors shortly.
“We believe the signing of new distributors in Europe and other international areas will allow us to not only increase sales, but provide superior service for our embedded base. We expect to generate international revenues once again in the second quarter, which will increase in the third quarter, and return to or exceed previous levels in the near future.
“As we capitalize on our position as a leader in the new digital out of home arena, we are excited with the commitments and responses we are getting. We expect a strong 2008 revenue contribution from our advertising segment. The launch of our digital out of home industry research project has gotten encouraging buy-in and acceptance. That program goes live in early June and will continue during the subsequent months.”
The 2008 first quarter was impacted by approximately $425,000 due to expenses in complying with Sarbanes Oxley, annual audit fees and expenses related to the PGA merchandise shows. These costs are unique to the first quarter each year and will not be incurred for the remainder of the year.
In addition, approximately $200,000 of litigation expense was realized in the first quarter as the Company pursued collection actions and patent infringement cases. The Company expects future quarters to be reduced to more customary levels.
For the 2008 first quarter, operating expenses were $3.7 million, compared to the 2007 first quarter of $4.4 million. Sales and marketing expenses were $0.9 million, compared to $1.5 million in the three months ended 31st March 2007. General and administrative costs were $1.9 million compared to the year-earlier period of $2.0 million. First quarter operating expenses include non-cash costs totaling $427,000 for stock-based compensation, depreciation and amortization, compared to non cash costs of $455,000 in the 2007 first quarter.
A summary of the highlights of the first quarter includes:
• Domestic total revenue for the 2008 first quarter of $5.7 million – increased 40% compared to $4.1 million in the 2007 first quarter.
• Record revenue from Domestic System sales – 90% up to $4.8 million, as compared to $2.5 million in the year-earlier period.
• Media Ready courses increased by 38 courses to 626 worldwide.
• Service Revenue continues to grow, increasing 11% to $590,000 versus the 2007 first quarter.
• Operating expenses decline $727,000 or 17% to $3.7 million from $4.4 million in the first quarter of 2007.
• Signed Sport Business Group as a new distributor in France. With over 400 golf courses, France is one of the larger golf markets in Europe.
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