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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
October 10, 2003 (October 8, 2003)
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Date of Report (Date of Earliest Event Reported)
Arkona, Inc.
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(Exact name of registrant as specified in its charter)
Delaware 0-24372 33-0611746
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(State or other jurisdiction (Commission File No.) (IRS Employer
of incorporation) Identification No.)
10542 South Jordan Gateway, Suite 200
South Jordan, Utah 84005
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(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code: (801) 501-7100
Item 12. Results of Operations and Financial Condition.
On October 8, 2003, Arkona, Inc. issued a press release announcing
certain financial results for the fiscal quarter ended September 30, 2003. The
text of the press release is set forth beginning on the following page.
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FOR IMMEDIATE RELEASE
Editorial Contact:
Dave Jenkins
ARKONA Inc.
801-501-7109
dave.jenkins@arkona.com
ARKONA ANNOUNCES CONSECUTIVE QUARTERS OF RECORD REVENUES, EARNINGS
Salt Lake City, Utah - October 8, 2003 - ARKONA Inc. (ARKN), the leader in
web-enabled dealer management solutions for the automobile industry, today
announced its second consecutive quarter of record revenues and profitability.
For its second fiscal quarter ending September 30, 2003, the company reported
earnings of $137,442 on revenues of $1,235,890, as compared to a loss of
($365,101) on revenues of $914,583 for the same period last year.
"We continue to strengthen our balance sheet through debt reduction and
accumulations of cash and cash equivalents," said Stephen Russo, Chief Financial
Officer. "Achieving record revenues is very satisfying to the management team,
but we're even more encouraged by the fact that earnings are increasing at an
even faster pace. This reflects significant increases in personal productivity
and leveraging of company assets."
"The strong growth ARKONA is experiencing is a reflection of the accelerated
adoption of our unequalled web-enabled dealer management solution," said Alan
Rudd, Chief Executive Officer. "Our business model is correctly targeted and our
sales, engineering and customer service teams are consistently meeting
established levels of performance. All signs point to significant ARKONA market
share gains through the third and fourth quarters and into the next fiscal
year."
To keep pace with customer demand for its Internet-based dealer management
solutions, ARKONA continues to invest in its infrastructure. Partnering with
IBM, the company recently added a fifth IBM iSeries system to its
state-of-the-art hosting facility in Salt Lake City. The new IBM model 810 will
increase ARKONA's growth capacity by more than 2,000 customer connections.
About ARKONA Inc.
ARKONA was the first to offer a true Application Services Provider (ASP)
solution for the automotive industry and continues to be a market leader in
providing innovative e-business solutions for automobile dealers A public
company, ARKONA was founded in 1996 and trades under the symbol ARKN. For more
information visit ARKONA's Web site at www.arkona.com.
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This release may contain forward-looking statements as well as historical
information. Forward-looking statements, which are included in accordance with
the "safe harbor" provisions of the Private Securities Litigation Reform Act of
1995, may involve known or unknown risks, uncertainties and other factors that
may cause the company's actual results and performance in future periods to be
materially different from any future results or performance suggested by the
forward-looking statements in this release. Such forward-looking statements
speak only as of the date of this release. The company expressly disclaims any
obligation to update or revise any forward-looking statements found herein to
reflect any changes in company expectations or results or any change in events.
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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this Current Report on Form 8-K to be signed on
its behalf by the undersigned thereunto duly authorized.
Arkona, Inc.
By: /s/ Stephen L. Russo
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Stephen L. Russo, Vice President of Operations
and Chief Financial Officer
Date: October 10, 2003