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DealerTrack Sees 4Q 2008 Loss; Expects Growth in 2009

February 24, 2009

DealerTrack reported a fourth quarter 2008 loss of $1.1 million, compared to a net income of $4.1 million in the year-ago quarter.

The software provider for auto dealers posted revenue of $54.7 million, down from $60.7 million in the year-ago period.

For 2008, DealerTrack reported a profit of $1.7 million, down from $19.8 million in 2007. Revenue for the year was $242.7 million, as compared to $233.8 million for 2007.

“The second half of 2008 was obviously very challenging, and we do not expect the first half of 2009 to improve as it relates to credit availability or car sales," said Mark F. O'Neil, chairman and chief executive officer of DealerTrack. "Given this outlook, we took aggressive action early in the new year to realign our workforce and business to focus on growth opportunities that we believe will make DealerTrack a stronger, more nimble company.”

O'Neil went on to say the company will continue to invest in the solutions that have healthy end-markets today, specifically the company's DMS and inventory management solutions. He added that he expected subscriptions for those products and others will deliver significant revenue growth in 2009.

“We maintain a strong balance sheet and believe we will continue to generate strong cash flows from operations throughout 2009," he said. "Ultimately, we expect to enter 2010 with an even stronger leadership position in automotive retail software and technology."

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