SAN JOSE, Calif., Dec. 7, 2011 /PRNewswire/ -- Notify Technology
Corporation (Pink Sheets: NTFY.PK) today announced financial
results for its fiscal year ended September
30, 2011.
Total fiscal twelve-month revenue decreased 6% to $6,833,885 in the twelve-month period ended
September 30, 2011 from $7,245,983 during the same period in the prior
year. The net loss for the twelve-month period ended
September 30, 2011 was $487,768 or $6.91
per diluted share. The company's financial performance dropped from
net income of $616,038 or
$8.75 per diluted share, reported for
the same period in the prior year. The decrease in net income for
the fiscal year reflects a combination of a reduction in new
account sales of NotifyLink and increased spending to develop and
launch its new NotifyMDM product line.
"This has been an exciting year for Notify as we have officially
entered the mobile device management (MDM) market. In April we
launched both our NotifyMDM On-Premise and On-Demand products which
incorporate a level of design and user interface which is
representative of 11 years of mobility experience," said
Paul DePond, President and Chief
Executive Officer of the company. "We are committed to enhancing
our NotifyLink and NotifySync products while advancing the
functionality of our NotifyMDM product to meet the competitive
requirements in the MDM marketplace. Our commitment required an
increase in our investment in product development by over 25% while
reducing our profitability for FY 2011. The increased spending
provided the additional development resources necessary to enhance
our NotifyMDM product's functionality to remain competitive in a
fast moving market."
Sales and Marketing expenses were $2,504,948 in the twelve-month period ended
September 30, 2011 compared to
$2,510,970 in the twelve-month period
ended September 30, 2010.
Spending remained flat even though we have increased our
participation in industry marketing.
Research and Development expenses were $3,079,921 in the twelve-month period ended
September 30, 2011 compared to
$2,256,301 in the twelve-month period
ended September 30, 2010. The
increase was due to investment in costs to expedite the development
and release of our NotifyMDM product line while still maintaining
the capability to improve and support our NotifySync and NotifyLink
products.
General and Administrative expenses decreased to $1,722,342 in the twelve-month period ended
September 30, 2011 compared to
$1,814,600 for the twelve-month
period ended September 30,
2010. The decrease was primarily due to our decision to
delist in fiscal 2011.
About Notify Technology Corporation
Founded in 1994, Notify Technology Corporation is an independent
software vendor (ISV) who has specialized in wireless mobility
solutions and services for the past 10 years. Notify's products
including NotifyLink and NotifyMDM support all major smartphone and
tablet platforms independent of wireless carrier or network.
Notify sells its mobility products directly and through authorized
resellers internationally. Notify is an official Apple iPhone
Enterprise Development Partner, Android Development Partner,
BlackBerry Development Partner, Windows Mobile, Windows Phone, and
Symbian Alliance Member. The Company is headquartered in
San Jose, California. For
more information, visit http://www.notifycorp.com or contact
408-777-7930.
Contacts:
At Notify Technology Corporation:
Jerry Rice, Chief Financial
Officer
Phone: 408-777-7927
jerry.rice@notifycorp.com
(Financial Tables Follow)
NOTIFY TECHNOLOGY CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
|
|
Three-Month Periods
|
|
Twelve-Month Periods
|
|
|
Ended
September 30,
|
|
Ended
September 30,
|
|
|
2011
|
|
2010
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
Product revenue
|
$
1,636,814
|
|
$
1,878,112
|
|
$6,833,885
|
|
$
7,245,983
|
|
Total
revenue
|
1,636,814
|
|
1,878,112
|
|
6,833,885
|
|
7,245,983
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue:
|
|
|
|
|
|
|
|
|
Product cost
|
4,449
|
|
18,612
|
|
24,689
|
|
45,743
|
|
Royalty payments
|
1,195
|
|
1,371
|
|
5,291
|
|
6,474
|
|
Total cost
of revenue
|
5,644
|
|
19,983
|
|
29,980
|
|
52,217
|
|
Gross
profit
|
1,631,170
|
|
1,858,129
|
|
6,803,905
|
|
7,193,766
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Research
and development
|
796,801
|
|
676,429
|
|
3,079,921
|
|
2,256,301
|
|
|
Sales and
marketing
|
602,161
|
|
555,371
|
|
2,504,948
|
|
2,510,970
|
|
|
General
and administrative
|
455,981
|
|
444,863
|
|
1,722,342
|
|
1,814,600
|
|
Total
operating expenses
|
1,854,943
|
|
1,676,663
|
|
7,307,211
|
|
6,581,871
|
|
|
|
|
|
|
|
|
|
|
|
Income
from operations
|
(223,773)
|
|
181,466
|
|
(503,306)
|
|
611,895
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income and other, net
|
3,344
|
|
1,310
|
|
15,538
|
|
4,143
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss) before provision for income taxes
|
(220,430)
|
|
182,776
|
|
(487,768)
|
|
4,143
|
|
|
|
|
|
|
|
|
|
|
Provision
for income taxes
|
--
|
|
--
|
|
--
|
|
--
|
|
Net income
(loss)
|
$
(220,429)
|
|
$
182,466
|
|
$
(487,768)
|
|
$616,038
|
|
|
|
|
|
|
|
|
|
|
|
Basic net
income (loss) per share
|
$ (3.12)
|
|
$
2.59
|
|
$
(6.91)
|
|
$
7.82
|
|
|
|
|
|
|
|
|
|
|
|
Basic
weighted average shares outstanding
|
70,556
|
|
70,476
|
|
70,556
|
|
70,403
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted net income (loss) per share
|
$
(3.12)
|
|
$
2.35
|
|
$
(6.91)
|
|
$
8.75
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted average shares outstanding
|
70,556
|
|
77,658
|
|
70,556
|
|
79,201
|
|
|
|
|
|
|
|
|
|
|
|
NOTIFY TECHNOLOGY CORPORATION
Condensed Balance Sheets
|
|
|
|
|
Sept.
30,
|
|
Sept.
30,
|
|
|
|
|
|
|
2011
|
|
2010
|
|
|
|
|
|
|
|
|
|
|
|
Assets:
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
|
$
2,040,580
|
|
$
2,526,654
|
|
|
|
Accounts
receivable, net
|
|
|
271,251
|
|
292,040
|
|
|
|
Other
assets
|
|
|
83,235
|
|
44,570
|
|
|
Total
current assets
|
|
|
2,395,066
|
|
2,863,264
|
|
|
|
Non-current assets
|
|
|
|
|
|
|
|
|
Property
and equipment, net
|
|
|
312,272
|
|
306,380
|
|
|
|
Lease
deposits
|
|
|
15,602
|
|
15,602
|
|
|
|
Total
non-current assets
|
|
|
327,874
|
|
321,982
|
|
|
|
Total
assets
|
|
|
$
2,722,940
|
|
$
3,185,246
|
|
|
Liabilities and shareholders'
deficit
|
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
|
Current
portion of capital lease obligation
|
|
|
$
2,665
|
|
$
3,369
|
|
|
|
Accounts
payable
|
|
|
65,103
|
|
55,378
|
|
|
|
Accrued
payroll and related liabilities
|
|
|
426,151
|
|
405,203
|
|
|
|
Deferred
revenue
|
|
|
2,839,051
|
|
2,927,067
|
|
|
|
Other
accrued liabilities
|
|
|
128,915
|
|
123,066
|
|
|
Total
current liabilities
|
|
|
3,461,885
|
|
3,514,083
|
|
|
Long-term
liabilities:
|
|
|
|
|
|
|
|
|
Long-term
Deferred revenue
|
|
|
88,142
|
|
112,696
|
|
|
|
Long-term
capital lease obligations
|
|
|
12,120
|
|
3,174
|
|
|
Total long-term
liabilities
|
|
|
100,262
|
|
115,870
|
|
|
Total
liabilities
|
|
|
3,562,147
|
|
3,629,953
|
|
|
Shareholders' deficit:
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
|
-
-
|
|
-
-
|
|
|
|
Common
stock
|
|
|
71
|
|
71
|
|
|
|
Additional
paid-in capital
|
|
|
23,624,030
|
|
23,530,762
|
|
|
|
Accumulated deficit
|
|
|
(24,463,308)
|
|
(23,975,540)
|
|
|
Total
shareholders' deficit
|
|
|
(839,207)
|
|
(444,707)
|
|
|
|
Total
liabilities and shareholders' deficit
|
|
$
2,722,940
|
|
$
3,185,246
|
|
|
|
|
|
|
|
|
|
|
|
|
SOURCE Notify Technology Corporation