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Corporate Overview June 2008 – Confidential.

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Presentation on theme: "Corporate Overview June 2008 – Confidential."— Presentation transcript:

1 Corporate Overview June 2008 – Confidential

2 Company Overview Highlights Market Focus
Third largest supplier of Dealership Management Systems to GM dealerships in Canada. 233 Dealerships have already chosen XSELLERATOR™. Selected as the new technology choice under GM’s Integrated Dealer Management Systems (IDMS) initiative in North America. Microsoft Strategic Partner for North American automotive (MS - Gold Certified and ISV-Managed Partner). Currently supported OEM integration: all GM franchises, Chrysler, Isuzu MD, Hyundai Canada and Kia Canada. Active Member of the Standards for Technology in Automotive Retail (STAR) initiative of the National Automobile Dealers Association (NADA). Market Focus Exclusively Automotive Retail, North America. Quorum Confidential

3 Experienced Management Team
Maury Marks, B.Mgt., C.A. – founder – 15 + years in automotive President & CEO Mark Allen, M.B.A. – 20+ years with GM and EDS ARG Vice President – Sales, Marketing & Services Dan Ichelson, B.Sc., M.B.A. – 10 + years in automotive Vice President, Support & Development Jeff Sharpe, C.A. Chief Financial Officer Quorum Confidential

4 Key Metrics Category (counts in RT’s) 2007 2008 201 29 40 100 200 38
‘08 US ‘08 CA Total Customer Count – installed or signed 201 June 233 49 188 Net New Installs 29 40 20 IDMS Customers 100 200 50 150 Migrations (SQL Server) 38 55 10 45 Integration Projects 2 June 10 Last Quarter Support Revenues (in 000’s) 1,200 1,450 Quorum Confidential 4

5 Sales Growth Strategic Pieces in Place:
49 US Dealerships – transact in 26 US States GM Integration – delivering 1st of 10 integration points – finally! Chrysler – integration running in 3 dealerships Business Transformation process underway – to significantly improve our implementations scale R&R IDMS Exit – July 31st deadline Quorum Confidential 5 5

6 Forecast Sales ($ Millions) Q1 Q2 Q3 Q4 2008 Total Sales $1.67 $2.20
Installs / Migrations $0.29 $0.70 $0.85 $0.90 $2.74 Support $1.22 $1.25 $1.32 $1.45 $5.24 Integration / Services $0.16 $0.25 $0.31 $1.03 Total Sales $1.67 $2.20 $2.48 $2.66 $9.01 INSTALLS 2 10 13 35 Notes: Quorum costs structure for a quarter is $2.0 million and $0.3 million in COGS for a total of $2.3 Quorum’s target for Q4 is a cost structure (not including COGS) of $1.9 million For Q4 – the company is looking to be 90 % absorbed – ($1.7 / $1.9) – which means that our cash burn without any new sales / migrations would $be 0.2 million. This puts the company in a position to change our pricing model for 2009 (to a more profitable model long term) – to allow us to charge less up-front and more on recurring revenue. Up-front costs are a huge barrier to sales.

7 Forecast Sales ($ Millions) 2006 2007 2008 2009 2010 Total Sales $7.4
Installs / Migrations $3.3 $2.8 $4.0 $6.0 Support $4.2 $5.2 $6.5 $8.0 Integration / Services $1.3 $0.7 $1.0 $2.0 $3.0 Total Sales $7.4 $8.2 $9.0 $12.5 $17.0 EBITDA ($) -$3.7 - $1.5 $0.5 $2.5 $5.0 EBITDA (%) -50% -18% 5% 20% 29% Notes: Integration / Services in 2006 includes $1.1 Million in one-time Palm Revenue Dramatic Improvement in Cash Management in fourth Q 2007 US Ready for increased sales in 2009 with GM IDMS Integration, Chrysler Integration, Transformed Implementation Approach, Cash Flow positive organization Higher margin support revenue drives EBITDA

8 Quorum Confidential


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