Quorum Releases Q2 Fiscal Year 2012 Results

Quorum Information Technologies Inc. (TSX VENTURE:QIS) ("Quorum" or the
"Company") today released its Second Quarter (Q2) Fiscal Year (FY) 2012 results.
Quorum delivers its dealership management system (DMS), XSellerator(TM), and
related services to automotive dealerships throughout North America. The Company
is both an Integrated Dealership Management System (IDMS) strategic partner with
General Motors Corporation (GM) and a strategic partner with Microsoft. Quorum's
XSellerator product is broadly promoted to its target dealerships throughout
North America by these prominent industry partners. Quorum supplies its DMS to
Isuzu, Chrysler, Hyundai, Kia, Nissan, Subaru, NAPA and Bumper to Bumper
franchised and independent dealership customers.


Maury Marks, Quorum's President and CEO made the following remarks about the
Company's Q2 FY2012 results:


Over the last two years, Quorum has become an "all makes" organization, with a
continued emphasis on GM dealerships. Quorum supplies our product to GM, Isuzu,
Chrysler, Hyundai, Kia, Nissan, Subaru, NAPA and Bumper to Bumper franchised
dealership as well as independent dealership customers. 


As the Company has grown in the market, we have also enhanced our operational
excellence by focusing on measurable improvements. Some of our key Q2 FY2012
milestones are as follows:




--  Quorum attained 263 installed active dealership rooftops at the end of
    Q2 FY2012. During the quarter we also sold an additional five dealership
    rooftops that will be installed in future quarters. 
--  During the quarter we released version 4.7.4, which contains two key
    features as follows: 
    --  "Communicator" which is designed to transform how dealership staff
        are able to take advantage of modern technology to communicate with
        their customers and with each other; and 
    --   "Console" a new customizable workspace with a cadre of productivity
        tools to help dealerships improve customer service, increase
        utilization of XSellerator and track key performance indicators. 
--  Our monthly Support CSI survey reported an average of 95% "very
    satisfied" with the service they received from our support center. 



Key financial results summary:



--  Sales increased slightly by 0.09% to $1,831K in Q2 FY2012 from $1,830K
    in Q2 FY2011. The change in sales is due to: 
    --  A decrease of $28K in net new revenue which was a result of
        completing six installations in Q2 FY2012 as compared to six larger
        dealership installations in Q2 FY2011.  
    --  An increase of $39K in recurring support revenue as a result from
        having 263 active dealership rooftops at the end of Q2 FY2012 versus
        249 at the end of Q2 FY2011. 
    --  A decrease in integration revenue of $9K due to a reduced number of
        GM integration projects.  
--  Earnings before interest, taxes, depreciation and amortization (EBITDA)
    decreased to $226K in Q2 FY2012 from $239K in Q2 FY2011. Income before
    taxes increased to $65K in Q2 FY2012 compared to income of $63K in Q2
    FY2011. 
--  Quorum had a net loss of $80K in Q2 FY2012 compared to a net income of
    $111K in Q2 FY2011. The loss in Q2 FY2012 is due to a deferred income
    tax expense of $145K while Q2 FY2011 had a deferred income tax recovery
    of $48K. 
--  Cash flows from operating activities increased to $326K in Q2 FY2012
    compared to $288K in Q2 FY2011 due to the effective management of cash
    collections and accounts payable. Net working capital at June 30, 2012
    was $904K, with a current ratio of 2.25, compared to $1,065K at December
    31, 2011, with a current ratio of 2.43. The decrease in working capital
    is primarily due to a decrease in accounts receivable from having less
    GM integration projects at the end of Q2 FY2012 versus Q4 FY2011 and the
    expiration of the Newfoundland and Labrador government wage subsidy
    payment as of March 31, 2012. 
--  Quorum posted its twelfth consecutive quarter of cash flow positive
    results. These results are due to a well-managed cost structure and from
    attaining a critical mass of dealerships that generate higher margin
    recurring support revenues. 



The Company continues to grow our customer base, improve our service offerings
and customer satisfaction, and lead the market in product innovation. We also
continue to deliver solid financial results and improve our cash and working
capital positions by producing improved positive cash flow every year. Our
single biggest challenge in 2012 is to grow our sales and implementation rates
to the "next level." We have already embarked on a number of initiatives that
are focused on meeting this challenge.


Quorum has filed its Q2 2012 consolidated financial statements and notes thereto
as at and for the period ended June 30, 2012 and accompanying management's
discussion and analysis in accordance with National Instrument 51-102 -
Continuous Disclosure Obligations adopted by the Canadian securities regulatory
authorities. Additional information about Quorum will be available on Quorum's
SEDAR profile at www.sedar.com and Quorum's website at www.QuorumDMS.com.


Financial Highlights



                                      Six Months                            
                         Six Month         Ended                            
                             Ended      June 30, Q2 Ended June Q2 Ended June
                     June 30, 2012          2011      30, 2012      30, 2011
----------------------------------------------------------------------------
Gross revenue         $  3,673,318  $  3,741,783  $  1,831,132  $  1,829,515
                                                                            
Direct costs             1,679,660     1,618,412       850,760       770,837
                                                                            
Margin after direct                                                         
 costs                   1,993,658     2,123,371       980,462     1,058,678
                                                                            
Earnings before                                                             
 interest, taxes and                                                        
 amortization                                                               
 (EBITDA)                  352,542       561,265       226,086       238,508
Income (loss) before                                                        
 deferred income tax        27,591       216,813        65,027        62,603
Net income (loss)         (132,565)       62,914       (80,311)      110,638
                                                                            
Comprehensive income                                                        
 (loss)                   (134,217)       (7,306)      (41,613)       92,871
                                                                            
Basic net income                                                            
 (loss) per share     $    (0.0034) $     0.0016  $    (0.0020) $     0.0028
Fully diluted net                                                           
 income (loss) per                                                          
 share                $    (0.0034) $     0.0016  $    (0.0020) $     0.0028
                                                                            
Weighted average                                                            
 number of common                                                           
 shares                                                                     
Basic                   39,298,438    39,298,438    39,298,438    39,298,438
Diluted                 39,298,438    39,684,319    39,298,438    39,684,319
                                                                            
XSellerator                                                                 
 installations - in                                                         
 the period                     12            12             6             6
XSellerator active                                                          
 dealership rooftops           263           249           263           249
----------------------------------------------------------------------------

                          Q1 Ended      Q1 Ended 
                         March 31,     March 31, 
                              2012          2011 
-------------------------------------------------
Gross revenue         $  1,842,186  $  1,912,268 
                                                 
Direct costs               828,990       847,575 
                                                 
Margin after direct                              
 costs                   1,013,196     1,064,693 
                                                 
Earnings before                                  
 interest, taxes and                             
 amortization                                    
 (EBITDA)                  126,456       322,757 
Income (loss) before                             
 deferred income tax       (37,436)      154,210 
                                                 
Net income (loss)          (52,254)      (47,724)
                                                 
Comprehensive income                             
 (loss)                    (92,604)     (100,177)
                                                 
Basic net income                                 
 (loss) per share     $    (0.0013) $    (0.0012)
Fully diluted net                                
 income (loss) per                               
 share                $    (0.0013) $    (0.0012)
                                                 
Weighted average                                 
 number of common                                
 shares                                          
Basic                   39,298,438    39,298,438 
Diluted                 39,298,438    39,684,319 
                                                 
XSellerator                                      
 installations - in                              
 the period                      6             6 
XSellerator active                               
 dealership rooftops           259           245 
-------------------------------------------------



About Quorum

Quorum is a North American company focused on developing, marketing,
implementing and supporting its XSellerator product for GM, Isuzu, Chrysler,
Hyundai, KIA, Nissan, Subaru, NAPA and Bumper to Bumper dealerships. XSellerator
is a dealership and customer management software product that automates,
integrates and streamlines every process across departments in a dealership. One
of the select North American suppliers under General Motors' IDMS program,
Quorum is the second largest DMS provider for GM's Canadian dealerships with 25%
of the market. Quorum is a Microsoft Partner in both Canada and the United
States. Quorum Information Technologies Inc. is traded on the Toronto Venture
Exchange (TSX-V) under the symbol QIS. For additional information please go to
www.QuorumDMS.com.


Forward-Looking Information

This press release contains certain forward-looking statements and
forward-looking information ("forward-looking information") within the meaning
of applicable Canadian securities laws. Forward-looking information is often,
but not always, identified by the use of words such as "anticipate", "believe",
"plan", "intend", "objective", "continuous", "ongoing", "estimate", "expect",
"may", "will", "project", "should" or similar words suggesting future outcomes.
In particular, this press release includes forward-looking information relating
to results of operations, plans and objectives, projected costs and business
strategy. Quorum believes the expectations reflected in such forward-looking
information are reasonable but no assurance can be given that these expectations
will prove to be correct and such forward-looking information should not be
unduly relied upon.


Forward-looking information is not a guarantee of future performance and
involves a number of risks and uncertainties some of which are described herein.
Such forward-looking information necessarily involves known and unknown risks
and uncertainties, which may cause Quorum's actual performance and financial
results in future periods to differ materially from any projections of future
performance or results expressed or implied by such forward-looking information.
These risks and uncertainties include but are not limited to the risks
identified in Quorum's Management's Discussion and Analysis for the period ended
June 30, 2012. Any forward-looking information is made as of the date hereof
and, except as required by law, Quorum assumes no obligation to publicly update
or revise such information to reflect new information, subsequent or otherwise.