Exhibit 99.1

 

Autobytel Reports Continued Year-Over-Year Increases
in Revenues and Net Income for 2012 Second Quarter

- Company Continues to Generate Cash and Strengthen Balance Sheet and Anticipates More than Doubling of Net Income Year-Over-Year -

IRVINE, Calif. (August 2, 2012) - Autobytel Inc. (Nasdaq: ABTL), a leading provider of online consumer purchase requests and marketing resources for the automotive industry, today reported increased year-over-year revenues and profitability for the second quarter ended June 30, 2012.

"Our financial results this quarter reflect Autobytel's ongoing ability to help automotive dealers and manufacturers sell more cars," said Jeffrey H. Coats, President and Chief Executive Officer of Autobytel.  "With our business now sustaining positive results, we are focused on strategically investing in future growth through a series of initiatives that we believe will allow the company to capture greater market share, as well as benefit from the improving auto industry."

Revenues for the 2012 second quarter grew to $15.7 million from $15.2 million a year ago.  Revenues generated from purchase requests, the company's core product offering, rose to $14.8 million for the 2012 second quarter from $14.2 million last year, primarily reflecting stronger demand from automotive manufacturers and other wholesale channels, as well as an increase in purchase request volume from dealers.

Gross profit was $6.3 million for the 2012 second quarter, compared with $6.4 million a year ago.  Gross margin totaled 40.3% of total revenues for the 2012 second quarter, compared with 41.7% for the second quarter of 2011.  The reduction in gross profit and gross margin was primarily due to cost increases during the quarter related to purchase request generation activities as the company increased expenditures to offset purchase request volume declines.

Total operating expenses declined to $6.0 million for the 2012 second quarter from $6.1 million for the same quarter last year.

Net income for the 2012 second quarter rose to $231,000, or $0.02 per diluted share, versus $199,000, or $0.02 per diluted share, for the 2011 second quarter.  Per share amounts reflect a 1-for-5 reverse stock split effected on July 11, 2012.

Cash flow provided by operations improved significantly to $2.0 million for the second quarter of 2012, compared with cash provided by operations of $1.4 million for the prior-year second quarter.

Six-Month Results

For the six months ended June 30, 2012, revenue rose to $32.4 million from $31.3 million for the first half of 2011.  Purchase request revenue for the 2012 year-to-date period increased 5% from the same period last year.

Gross profit increased to $13.2 million for the 2012 year-to-date period, up from $12.5 million for the same period last year.  Gross margin improved to 40.6% for the first half of 2012, compared with 40.0% for the first half of 2011.

Total operating expenses for the first half of 2012 were reduced to $12.5 million, from $12.7 million for the first six months of last year.

---

Net income for the year-to-date period of 2012 was $484,000, or $0.05 per diluted share, versus a net loss of $371,000, or $0.04 per share, for the prior-year period.  Per share amounts reflect a 1-for-5 reverse stock split effected on July 11, 2012.

Cash flow provided by operations was $2.9 million for the six months ended June 30, 2012, compared with $213,000 for last year's first half.

Cash and cash equivalents increased to $12.4 million at June 30, 2012, inclusive of $1.2 million spent during the 2012 second quarter to repurchase approximately 334,000 shares of the company's common stock, completing its initial $1.5 million stock buyback program.  Cash and cash equivalents totaled $11.2 million at December 31, 2011 and $12.1 million at March 31, 2012.

Business Outlook

Autobytel said it anticipates single-digit revenue growth for 2012, as well as more than doubling of net income year-over-year.

Conference Call

Autobytel management will host a conference call today at 5 p.m. ET/2 p.m. PT to discuss its 2012 second quarter financial results.  Interested parties may participate in the live call by dialing (877) 852-2929, passcode 11043285.  An audio broadcast will also be available through a live webcast at www.autobytel.com (click on "Investor Relations" and then click on "Events & Presentations").  Please visit the website at least 15 minutes prior to the start of the call to register and download any necessary software.  For those unable to listen to the live broadcast, the call will be archived for one year on Autobytel's website.  A telephone replay of the call will also be available through August 9, 2012 by dialing (855) 859-2056, passcode 11043285.  The slides that will be referenced during the call will be available on the company's website at www.autobytel.com (click on "Investor Relations" and then click on "Events & Presentations").  The slides will contain disclosures of EBITDA (earnings before interest, taxes, depreciation and amortization) and cash flow, which are non-GAAP financial measures as defined by SEC Regulation G.  Reconciliations of these non-GAAP financial measures to the most directly comparable GAAP financial measure will be included in the slides.

About Autobytel Inc.  

Autobytel Inc., an online leader offering consumer purchase requests and marketing resources to car dealers and manufacturers and providing consumers with the information they need to purchase new and used cars, pioneered the automotive Internet when it launched its flagship website, autobytel.com, in 1995.  Autobytel continues to offer innovative products and services to help consumers buy, and auto dealers and manufacturers sell, more used and new cars.  Autobytel has helped tens of millions of automotive consumers research vehicles; connected thousands of dealers nationwide with motivated car buyers; and helped every major automaker market its brand online.  Through its flagship website, its network of automotive sites and respected online affiliates, Autobytel continues its dedication to innovating the industry's highest quality Internet programs to provide consumers with a comprehensive and positive automotive research and purchasing experience, and auto dealers, dealer groups and auto manufacturers with some of the industry's most productive and cost-effective customer referral and marketing programs.

Investors and other interested parties can receive Autobytel news releases and invitations to special events by accessing our online signup form at http://investor.autobytel.com/alerts.cfm.

---

Forward-Looking Statements Disclaimer

The statements contained in this press release that are not historical facts are forward-looking statements under the federal securities laws.  These forward-looking statements, including, but not limited to, the company's anticipation of single-digit revenue growth for 2012, as well as more than doubling of net income year-over-year, the company's ability to sustain positive results and the company's belief that a series of initiatives will allow the company to capture greater market share and benefit from the improving auto industry, are not guarantees of future performance and involve assumptions and risks and uncertainties that are difficult to predict.  Actual outcomes and results may differ materially from what is expressed in, or implied by, these forward-looking statements. Autobytel undertakes no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise.  Among the important factors that could cause actual results to differ materially from those expressed in, or implied by, the forward-looking statements are changes in general economic conditions; the financial condition of automobile manufacturers and dealers; disruptions in automobile production; changes in fuel prices; the economic impact of terrorist attacks, political revolutions or military actions; failure of our internet security measures; dealer attrition; pressure on dealer fees; increased or unexpected competition; the failure of new products and services to meet expectations; failure to retain key employees or attract and integrate new employees; actual costs and expenses exceeding charges taken by Autobytel; changes in laws and regulations; costs of legal matters, including, defending lawsuits and undertaking investigations and related matters; and other matters disclosed in Autobytel's filings with the Securities and Exchange Commission.   Investors are strongly encouraged to review the company's Annual Report on Form 10-K for the year ended December 31, 2011 and other filings with the Securities and Exchange Commission for a discussion of risks and uncertainties that could affect the business, operating results, or financial condition of Autobytel and the market price of the company's stock. In addition, current year financial information could be subject to change as a result of subsequent events or the finalization of the company's financial statement close which culminates with the filing of the company's Annual Report on Form 10-K for the current year.

Contacts:

Investor Relations:

Autobytel Inc.

Curt DeWalt

Chief Financial Officer

949-437-4694

PondelWilkinson Inc.

Roger Pondel/Laurie Berman

310-279-5980

CMC Group, Inc.

Bradley Orr

303-887-4932

Media Relations:

MSC-PR

Michelle Suzuki

310-444-7115

# # #

(Financial Tables Follow)

---

8