ARI, a provider of electronic parts catalogs and marketing services, reported slightly higher revenue in its third quarter compared to the year-ago period.
The company also saw a sizeable decrease in its net income — to $226,000 from $427,000 — in its quarter, which ended April 30.
ARI CEO Roy Olivier said in a press release the company’s slight revenue gain in the quarter was “a result of strong sales of new marketing services and continued high levels of renewals for marketing services and catalog subscriptions, partially offset by a decline in professional services revenue.”
During the quarter, ARI acquired two firms: Channel Blade Technologies Corp., a company that focuses on sales lead generation and management, and Powersports Outsourcing Group, a F&I provider.
“Because both acquisitions were completed in the latter half of April, they have only had a nominal impact on our third-quarter revenue, but are expected to have a stronger impact in the fourth quarter and beyond,” Olivier said.
For the company’s first nine quarters of its fiscal year, revenues decreased 2.5 percent to $12.2 million. For those first three quarters, ARI’s net income decreased 46.5 percent to $538,000, primarily due to non-cash adjustments to deferred tax assets in the fiscal second and third quarters.