ARI Network Services Inc., Milwaukee, Wis., reported net income of $1.4 million, or 20 cents per share, for the fourth quarter of fiscal 2005, ended July 31, up from net income of $628,000, or 10 cents per share, posted for the fourth quarter of 2004. Net sales were $3.6 million, up 3% from $3.5 million.
For the year ended July 31, net income was $2.8 million, or 42 cents per share, compared with $1.1 million, or 17 cents per share, in fiscal 2004. Net sales were $13.7 million, up 2% from $13.4 million. Operating income for the year was $2.1 million, or $0.32 per diluted share, up 67% from operating income of $1.3 million or $0.21 per diluted share in fiscal 2004.
Net income for both the fiscal year and the fourth quarter includes the effect of an $865,000 reduction in the deferred tax valuation allowance. Operating income rose on higher revenue and a reduction in non-cash expenses related to an acquisition.
ARI is a provider of electronic parts catalogs and related technology and services. ARI currently provides approximately 88 parts catalogs (many of which contain multiple lines of equipment) for approximately 70 equipment manufacturers in the U.S. and Europe. Approximately 88,000 catalog subscriptions are provided through ARI to more than 30,000 dealers and distributors in more than 120 countries in a dozen segments of the worldwide equipment market, including powersports, outdoor power, ag equipment, recreation vehicle and marine.
“Fiscal 2005 was the best year in ARI's history,” said Brian E. Dearing, chairman and chief executive officer of ARI. “Revenues increased modestly in the second half of the year, as we had anticipated. We achieved a very significant increase in operating income, continued to generate cash and pay down debt and made good progress on our growth initiatives.”
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