DealerTrack Reports Drop in 1Q Revenue
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.
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.
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