Park City Group (PCYG) Misses Q3 EPS by 1c, Revenues Miss

Park City Group (NASDAQ: PCYG) reported Q3 EPS of $0.01, $0.01 worse than the analyst estimate of $0.02. Revenue for the quarter came in at $4.63 million versus the consensus estimate of $4.7 million.

Third Quarter Financial and Recent Business Highlights:

• Total revenue decreased 7% year-over-year due to lower one-time revenue, partially offset by higher recurring revenue.
• Recurring revenue increased 5% comparatively, constituting 90% of total revenue.
• Operating expense increased 10% year-over-year due to higher Marketplace costs.
• Net income of $272,000.
• EPS $0.01 vs. $0.05 in the prior year third quarter.

Randall K. Fields, Chairman and CEO of Park City Group commented, “The COVID-19 pandemic has impacted nearly everyone, and certainly, the grocery supply chain has been profoundly affected. In the short term, this situation has benefited transaction revenue from our MarketPlace platform, while impacting ReposiTrak revenues as our customers shifted their full attention to more pressing pandemic-related matters. Simultaneously, this situation has made what we do for our customers even more important, reinforcing our position as a key contributor to food safety and supply chain continuity. We take this public trust very seriously. During the quarter, we launched our FoodSourceUSA program, providing our proprietary supply chain and out-of-stock data to the Department of Defense, to proactively address chronic imbalances in the food supply chain caused by the COVID-19 and other situations. The pandemic has strengthened the essential role we play in the food supply chain, ensuring food safety, managing scan-based trading that underpins much of the grocery supply chain, and connecting retailers and suppliers.”

“Our Marketplace platform saw an increase in use, as retailers search for suppliers of in-demand and hard to source items ranging from personal protective equipment (PPE) to food storage items like chest freezers and other products that allow retailers and their customers to adapt to shelter-in-place and work-from-home mandates,” continued Mr. Fields. “However, as one would expect, our growth in Tier 2 hubs and supply chain implementations was negatively impacted as the attention of retailers and supplier was redirected to emergencies. This fact, combined with the absence of one-time revenue, resulted in diminished margins and reduced profitability. We have taken steps to reduce our expenditures during these challenging times, and we are positioning ourselves to weather the storm. As things begin to normalize, I am optimistic that we have proven our value to our customers. We believe the disruptions will cause a great deal of re-thinking about the food supply chain, and the we will be able to assist our customers building a more resilient system in the future.”

For earnings history and earnings-related data on Park City Group (PCYG) click here.

You May Also Be Interested In

• American Express (AXP) down despite beating Q1 estimates on top and bottom lines
• Safe & Green (SGBX) Provides Update on Audit and Planned 10-K Filing
• Norfolk Southern (NSC) corrects Ancora's false and misleading statements