Quorum Releases Q3 FY2009 Results

Quorum Information Technologies Inc. ("Quorum" or the "Corporation") (TSX
VENTURE:QIS) today released Third Quarter (Q3) Fiscal Year (FY) 2009 results.
Quorum provides services to General Motors (GM), Chrysler and Hyundai
dealerships in North America. The Corporation is an Integrated Dealership
Management System (IDMS) strategic partner with GM and a strategic partner with
Microsoft. Quorum's XSELLERATOR(TM) product is broadly promoted to GM
dealerships by these prominent industry partners. 


Maury Marks, Quorum's President and CEO made the following remarks about the
Company's Q3 FY2009 results:


We are starting to see market conditions rebound and although GM and Chrysler
dealerships are approaching the future with caution, there is some optimism and
a desire to return to "business as usual". We've experienced recent key events
that indicate a return to "business as usual." In Q3 FY2009, our qualified leads
pipeline grew by 35% and grew by a further 20% in the first half of Q4 FY2009.
Starting at the end of Q3 we began to sign a greater volume of new customers to
contracts, including a continuous period where we signed a new customer a week
for six weeks. Dealerships that lost their GM franchises are "changing over"
their business to new manufacturer franchises or to aftermarket operations. The
consequence for Quorum is that we will add three new markets by the end of this
year in partnership with our existing, change-over customers. Additionally,
Quorum deployed the GM Global Warranty integration point for Canada and four new
integration projects were initiated by GM in Q3 FY2009. 


In Q3 we had strong improvements in the following two key numbers:

- Gross Margin percent improved to 66% in Q3 FY2009. Our "cost of products and
services sold" represents support and implementation salaries and other direct
costs related to installations and migrations. As our support revenue grows, the
high margin support revenue drives our gross margin up. 


- EBITDA (earnings before interest, taxes and amortization) increased to
$529.552 for Q3 FY2009 compared to Q3 FY2008 of $262,718. 


A key significant result for Q3 FY2009 was Quorum's cash balance increase of
$64,697 and related working capital increase of $210,810 over Q2 FY2009. These
increases were made while we paid off $17,282 in financing. At the end of Q3
FY2009, Quorum had a cash balance of $923,564 and a positive working capital
position of $1,417,884. In Q4 FY2009, we received $203,303 of Provincial
Government Scientific Research and Experimental Development (SRED) cash payments
and an additional $35,595 pursuant to our Atlantic Canada Opportunities Agency
(ACOA), 0%, non-secured government loan.


Despite dealing with the aftermath of the global recession and GM's and
Chrysler's corporate bankruptcies, the Company had a very strong quarter. Our
diligence towards reducing our cost structure and finding alternate revenue
sources has allowed Quorum to generate our strongest quarterly working capital
growth in the history of the Company. 




Financial Highlights (dollar figures in '000)

----------------------------------------------------------------------------
                                         Nine      Nine  
                                       Months    Months        Q3        Q3
                                        Ended     Ended     Ended     Ended
                                     Sept. 30, Sept. 30, Sept. 30, Sept. 30,
                                         2009      2008      2009      2008
----------------------------------------------------------------------------
Gross revenue                         $ 5,386   $ 6,271   $ 1,853   $ 2,481
Gross profit                            3,226     2,422     1,216     1,070
Expenses                                2,071     2,723       608       877
Operating income (loss) before
 interest, taxes, depreciation
 and amortization (EBITDA)              1,149        (9)      530       263
Net income (loss)                         201      (702)        9        72
Cash flow from operating
 activities                               673       (54)      332       436
Quarterly cash expenditures           $ 5,881   $ 6,981   $ 1,849   $ 2,224
----------------------------------------------------------------------------

KEY MANAGEMENT METRICS
XSELLERATOR installations - in
 the period                                 6        22         3        10
XSELLERATOR total rooftops                221       223       221       223
----------------------------------------------------------------------------


----------------------------------------------------------------------------
                                           Q2        Q2        Q1        Q1
                                        Ended     Ended     Ended     Ended
                                      June 30,  June 30, March 31, March 31,
                                         2009      2008      2009      2008
----------------------------------------------------------------------------
Gross revenue                         $ 1,636  $  2,117   $ 1,896   $ 1,673
Gross profit                              903       847     1,107       505
Expenses                                  691       901       772       945
Operating income (loss) before
 interest, taxes, depreciation
 and amortization (EBITDA)                250        60       369      (331)
Net income (loss)                           3      (252)      189      (522)
Cash flow from operating
 activities                                53      (264)      289      (226)
Quarterly cash expenditures           $ 2,072   $ 2,422   $ 1,960   $ 2,336
----------------------------------------------------------------------------

KEY MANAGEMENT METRICS
XSELLERATOR installations - in
 the period                                 1        10         2         2
XSELLERATOR total rooftops                224       213       225       203
----------------------------------------------------------------------------

 

About Quorum

Quorum is a North American company focused on developing, marketing,
implementing and supporting its XSELLERATOR(TM) product for the automotive
vertical. XSELLERATOR is a dealership and customer management software product
which automates, integrates and streamlines every process across departments in
a dealership. One of the select North American suppliers of General Motors'
IDMS, Quorum is the third largest DMS provider for GM's Canadian dealerships
with over 20% of the market. Quorum is a Microsoft Gold Certified Partner and
Field-Level Managed ISV in both Canada and the United States. Quorum Information
Technologies is traded on the Toronto Venture Exchange (TSX-V) under the symbol
QIS. For additional information please go to www.QuorumDMS.com. The TSX Venture
Exchange does not accept responsibility for the adequacy or accuracy of this
release.