PHOENIX — Because of slowing sales due to economic struggles of its primary customer base, NowAuto Group revealed decreased revenues at the close of its fiscal year.

The company calculated that its revenue totaled $5.1 million, resulting in a net loss of 20 cents per diluted share. These figures came at the close of NowAuto's fiscal year that ended June 30.

During the previous fiscal year, NowAuto posted approximately $5.4 million in revenue, computing into a loss of 24 cents per diluted share.

NowAuto emphasized the decrease in revenue in the recent fiscal year was due to lower sales.

The company explained the markets its serves continue to experience high unemployment and severely depressed real estate conditions. Executives added customers in their primary markets — construction and retail — still face experience a challenging environment.

In other news contained within the company's financial report, NowAuto indicated its gross margin increased during the recent fiscal year. The figure moved up to 58 percent from 45 percent in the prior year.

Management attributed the gain to a new enterprise system that is more efficient at capturing cost and incorporating them in the sales price.

Elsewhere, NowAuto stated its contract receivables, including deferred revenue from lease contracts, increased 2.1 percent from the prior year. Executives conceded there was a one-time write off that took place during the year. Exclusive of that event, they noted contract receivables increased by 9.7 percent

Chief executive officer Scott Miller shared his assessment of NowAuto's fiscal year report.

"The present condition of the subprime and below subprime market has continued to impact our industry and our company," Miller began.

"While our emphasis is always on collections, our challenge in the current environment is to maximize sales while aggressively work with our customer to maintain active contracts," Miller continued. "New finance programs, new businesses and changes in marketing and advertising yielded positive results. Nevertheless, we expect a difficult environment for the foreseeable future.

"Our commitment to customers and shareholders alike remains — NowAuto will do whatever it can to maintain productive contracts without placing imprudent demands on our customers," he went on to say.

Chief financial officer Faith Forbis mentioned some strategies NowAuto plans to implement to boost its financial performance for the next fiscal year.

"We are seeking to broaden our customer base and increase repeat business using new customer retention and reward programs," Forbis noted. "We believe programs, combined with an improved interest rate environment, will boost fiscal 2011 sales."

Chief operating officer Theodore Valenzuela elaborated on the points Forbis made.

"During the second quarter of fiscal 2010 we will be launching new business lines complementary to our existing operations," Valenzuela stated.

"We expect minimal start-up and operating expenses for these new lines of business," he went on to say.

"While we do not expect substantial contribution to our top line in the first year, we believe these new lines of business will improve the bottom line in fiscal 2012," Valenzuela concluded.