LAKE SUCCESS, N.Y. — DealerTrack reported revenue of $55.7 million for the first
quarter 2009, a drop from the $64.3 million recorded during the year-ago
period. The company had a net loss of $5.6 million in the first quarter, compared
to a net income of $2.3 million in the year-ago period.
The company lowered its expected revenue and GAAP net loss
for the year. It also adjusted its revenue and loss estimates in anticipation
of a 15 to 20 percent decline in lender-to-dealer relationships in 2009, a U.S.
new-car sales decline of between 9.5 to 10.5 million units, and a drop in used-car
sales of 12 to 13 million units.
"The first quarter of 2009 proved to be a challenging
macro-economic environment in terms of auto sales and credit availability. We
did not see this downturn until the second half of last year, so the first
quarter of 2009 is difficult to compare to the first quarter of 2008,"
said Mark F. O'Neil, chairman and chief executive officer of DealerTrack.
"That said, we continue to make targeted investments in
the business. We are pleased with the acquisition of AAX, which has made us a
clear leader in the strategic inventory management space. We expect our DMS
business to continue to grow and have experienced success with our solutions
selling model. While we have decreased revenue guidance, we have reaffirmed our
non-GAAP earnings guidance because of the growth in the subscription business
and the cost containment measures we have put into place," he added.
