NPLA Inplay Technologies (MM)

InPlay Technologies (NASDAQ: NPLA) today announced financial results for the three months ended March 31, 2007. Total revenue for the first quarter of 2007 was $9.1 million, up from $1.7 million for the first quarter of 2006. InPlay reported net income for the first quarter of $6.2 million, or $0.54 per share as compared to a net loss of $532,000, or $0.05 per share, for the first quarter of 2006. Revenue for the quarter included $7.6 million from the sale of its allowed claim against Delphi Automotive Systems, LLC for licensing fees. MagicPoint� revenue was $1.2 million and Duraswitch� non-Delphi revenue was $267,000 for the three months ended March 31, 2007. Excluding the Delphi revenue, which did not have any raw material costs associated with it, consolidated gross margin was 36 percent for the quarter, including 27 percent for the MagicPoint segment and 75 percent for the Duraswitch segment. InPlay�s cash position at March 31, 2007 was $9.1 million and the company has no debt. �During the quarter, we strengthened our balance sheet significantly with the sale of our claim for licensing fees from Delphi,� said Bob Brilon, CEO, InPlay Technologies. �Our stated strategy for 2007 is to continue to pursue new licensees for our Duraswitch technology and support current licensees in their efforts to win new designs using our patented switch technologies. For our MagicPoint technology, we are targeting top-tier computer OEMs and strategic partners. With digital stream communication, our pen technology offers these partners the opportunity to expand the capabilities of pen input for the tablet PC platform and differentiate their products in the marketplace,� Brilon added. Conference Call InPlay Technologies will host a conference call today at 5:00 p.m. Eastern Time. To participate on the live call, analysts and investors should dial 800-257-7087 at least ten minutes prior to the call. To participate on the live call from outside the U.S., dial 303-205-0055. InPlay Technologies will also offer a live and archived webcast of the conference call, accessible from the "Investor" section of the company�s Web site (http://www.inplaytechnologies.com). A telephonic replay of the conference call will also be available through May 5 by dialing 800-405-2236 and entering passcode 11089404#. About InPlay Technologies InPlay Technologies develops, markets and licenses proprietary emerging technologies. Working with its licensees and OEM customers, InPlay offers technology solutions that enable innovative designs and improved functionality for electronic products. The company�s MagicPoint� technology is the only digital-based pen-input solution for the rapidly growing tablet PC and mobile computing markets. Its Duraswitch� brand of electronic switch technologies couples the friendly tactile feedback of mechanical pushbuttons and rotary dials with the highly reliable, thin profile of membrane switches, making it ideal in a wide range of commercial and industrial applications. InPlay is focused on further commercializing these technologies and seeking additional innovative technologies to enhance its portfolio. Visit www.inplaytechnologies.com for more information. This news release contains certain �forward-looking statements� within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements regarding our ability to manage our cash resources, our ability to successfully market our technologies to obtain new licensees and customer projects for our Duraswitch and MagicPoint technologies, and our estimation of the market opportunity for our technologies. Risks and uncertainties that could cause results to differ materially from those projected include changes in orders or timing from our licensees and OEM customers, general changes in demand in the personal computing industry, pricing pressures, component shortages, unanticipated expenses or other unforeseen difficulties related to manufacturing our technologies and other uncertainties described from time to time in our documents filed with the Securities and Exchange Commission, including our Annual Report on Form 10-KSB for the year ended December 31, 2006 as filed with the Securities and Exchange Commission on April 2, 2007. These forward-looking statements represent our beliefs as of the date of this press release and we disclaim any intent or obligation to update these forward-looking statements. INPLAY TECHNOLOGIES, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) � � Three Months Ended March 31, 2007� 2006� � NET REVENUE: MagicPoint $ 1,168,034� $ 1,565,369� Duraswitch: Related party - Delphi 7,631,250� -� Non-related parties 266,971� 152,626� Total net revenue 9,066,255� 1,717,995� � COST OF GOODS SOLD: MagicPoint 857,373� 1,190,016� Duraswitch 66,325� 61,768� Total cost of goods sold 923,698� 1,251,784� � Gross profit 8,142,557� 466,211� � OPERATING EXPENSES: Selling, general and administrative 1,483,987� 716,778� Research, development and commercial application engineering 338,158� 311,899� � Total operating expenses 1,822,145� 1,028,677� � INCOME (LOSS) FROM OPERATIONS 6,320,412� (562,466) � OTHER INCOME - Net 38,582� 30,075� � INCOME (LOSS) BEFORE INCOME TAXES $ 6,358,994� $ (532,391) � PROVISION FOR INCOME TAXES 127,180� -� � � NET INCOME (LOSS) $ 6,231,814� $ (532,391) � EARNINGS (LOSS) PER SHARE - BASIC $ 0.54� $ (0.05) � EARNINGS (LOSS) PER SHARE - DILUTED $ 0.54� $ (0.05) � WEIGHTED AVERAGE SHARES OUTSTANDING, BASIC 11,502,373� 11,481,512� DILUTED 11,559,472� 11,481,512� INPLAY TECHNOLOGIES, INC. CONSOLIDATED BALANCE SHEETS (Unaudited) � March 31, 2007 December 31, 2006 ASSETS CURRENT ASSETS: Cash and cash equivalents $ 9,123,463� $ 1,591,312� Accounts receivable 281,540� 379,369� Inventory 613,788� 1,159,629� Prepaid expenses and other current assets 70,498� 190,847� Total current assets 10,089,289� 3,321,157� � PROPERTY AND EQUIPMENT - Net 470,916� 510,167� GOODWILL 1,321,240� 1,321,240� PATENTS - Net 1,285,429� 1,303,474� OTHER ASSETS 12,258� 12,258� TOTAL ASSETS $ 13,179,132� $ 6,468,296� � LIABILITIES AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES: Accounts payable $ 1,012,503� $ 698,600� Accrued salaries and benefits 496,897� 498,090� Accrued purchase commitments 456,000� 456,000� Other accrued expenses and other current liabilities 345,735� 192,974� Deferred revenue 26,620� 25,526� Total current liabilities 2,337,755� 1,871,190� � LONG-TERM LIABILITIES: Other non-current liabilities -� 851� Total liabilities 2,337,755� 1,872,041� � COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY: Preferred stock, no par value, 10,000,000 shares authorized, no shares issued and outstanding in 2007 and 2006 -� -� Common stock, $.001 par value, 40,000,000 shares authorized in 2007 and 2006, 11,504,051 and 11,502,315 shares issued and outstanding in 2007 and 2006, respectively � 11,504� 11,502� Additional paid-in capital 31,437,742� 31,424,436� Accumulated deficit (20,607,869) (26,839,683) Total stockholders' equity 10,841,377� 4,596,255� TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 13,179,132� $ 6,468,296�