ARI Announces Second Quarter Results.(Financial report)

ARI (OTCBB:ARIS), a leading provider of technology-enabled services that help dealers, distributors and manufacturers in selected vertical markets enhance revenue and reduce costs, reported results for its second fiscal quarter ended January 31, 2010. Second Quarter Fiscal 2010 Highlights Revenues increased 35% to $5.4 million for the second quarter of fiscal 2010, compared to $4.0 million for the second quarter of fiscal 2009.

Operating income increased 9% to $329,000 for the second quarter of fiscal 2010, compared to $303,000 for the second quarter of fiscal 2009.

Net income increased to $176,000 or $0.02 per share for the second quarter of fiscal 2010, compared to $56,000 or $0.01 per share for the second quarter of fiscal 2009. Year to Date Fiscal 2010 Highlights Revenues increased 33% to $10.8 million for the first half of fiscal 2010, compared to $8.1 million for the same period last year.

Operating income increased 12% to $668,000 for the first half of fiscal 2010, compared to $594,000 for the same period last year.

Net income increased 8% to $338,000 or $0.04 per share for the first half of fiscal 2010, compared to $312,000, and also $0.04 per share, for the same period last year. Operations Review "The strong operating results we posted in our first fiscal quarter have continued into the second quarter. In addition to the growth resulting from our April 2009 acquisition of Channel Blade Technologies, we posted strong organic sales growth for the quarter, in spite of the tough economic conditions," said Roy W. Olivier, President and Chief Executive Officer of ARI.

"The organic results come from new sales of our current services, including our most recent offerings SearchEngineSmart™ and PartStream™, as well as continued high levels of renewals for marketing services and catalog subscriptions. These factors were partially offset by a decline in non-strategic professional services revenue, which remains negatively affected by the state of the economy. The continued growth of our marketing services can be attributed to the tangible value we bring to our customers. "

"We are pleased with the continued growth in operating income, which I believe is a reflection of our ability to effectively integrate acquisitions and to grow during the current economic downturn," stated Brian E. Dearing, Chairman and Interim Chief Financial Officer of ARI. "We have driven significant synergies in the integration of last year's Channel Blade acquisition, increasing pro forma operating income by $370,000 for the second quarter and $763,000 year to date, versus the same periods last year. It is also important to note that we have increased our investment in product development versus last year's second quarter."

Keywords: ARI Network Services Inc., Acquisitions, Advertising, Consumer Electronics, Data Management, Finance, Financial, Hardware, Internet, Investing, Investment, Marketing, Mergers, Network Services, Networks, Software, Technology, Telecommunications

This article was prepared by Network Weekly News editors from staff and other reports. Copyright 2010, Network Weekly News via VerticalNews.com.