By: Dylan Sikes - AllPennyStocks.com News

Monday, November 23, 2015

According to research firm Gartner, worldwide spending on customer relationship management (CRM) software totaled $23.2 billion in 2014. Spending rose 13.3% from 2013. Gartner’s Research Vice President Joanne Correia noted noted that market consolidation continued in 2014 and price wars started quickly as large vendors fought to keep their installed base from moving to other vendors and to stop the descent of their maintenance revenue.

According to Gartner, spending in North America and Western Europe continued in double digits as North America continued to generate the bulk of revenue in the overall CRM market. North America accounted for 52.3% of the revenue in the CRM market.

The CRM software market has been seeing robust growth and this is reflected in Quorum Information Technologies Inc.’s (TSX-Venture:QIS) third-quarter results. Based in Calgary, Canada, Quorum is focused on the development, marketing, implementing and supporting of its XSELLERATOR product for GM, Chrysler, Hyundai, Kia, Nissan, Subaru, NAPA and Bumper to Bumper franchised dealership customers as well as other franchised, independent and some non-automotive dealerships. QIS’s XSELLERATOR is a dealership and customer management software product that enables automation, integration and streamlining of every process across departments in a dealership.

QIS this morning reported that its sales for the third quarter of 2015 rose 24% on a year-over-year basis. The increase in sales was driven by an increase in recurring support revenue as a result of having more active dealership rooftops at the end of third quarter of 2015 as compared to the end of the third quarter of 2014. Sales also rose due to an increase in support plus revenue.

QIS’s EBITDA for the third quarter rose by $23,000 to $469,000. Income before deferred income tax expense decreased by $28,000 to $96,000.

QIS also said that in the second quarter of 2015, it entered into agreements with Ford and DMS integration technology partner, Oxlo, to develop a full suite of Ford integration and offer its XSELLERATOR dealership and customer management system to Ford and Lincoln dealerships. QIS said that it is actively building the integration and plans to pilot with its Canadian Ford dealership network in the first quarter of 2016. The company plans to focus on the Ford Canadian market and will later offer its DMS to the Ford U.S. market.

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