SAN JOSE, Calif., March 8, 2012 /PRNewswire/ -- Notify
Technology Corporation (NTFY.PK) today announced financial
results for its first fiscal quarter ended December 31, 2011.
Total fiscal first quarter revenue decreased to $1,606,851 in the three-month period ended
December 31, 2011 from $1,840,487 during the same period in the prior
year. The net loss for the three month period ended
December 31, 2011 was $410,761 or $(5.82)
per diluted share. The company's financial performance was down
from a net income of $15,303 or
$0.19 per diluted share, reported for
the same period in the prior year. The decrease in net income for
the fiscal quarter reflects the combined impact of a decline in
sales of the NotifyLink product line and the expense of our
investment in developing our new mobile device management product
line, NotifyMDM.
"This past quarter we announced our first NotifyMDM OEM
relationship with CommonTime LTD located in the United Kingdom. CommonTime will integrate our
NotifyMDM technology into their product line and make it available
to their new and current customers around the world as CommonTime
MDM," said Paul DePond, President
and Chief Executive Officer of the company. "As a result of our
commitment to achieving a leadership position in the mobile device
management market, we have increased our development expenses by
19% as compared to last year's expenditures while forgoing any
short term profitability."
Sales and Marketing expenses were $741,899 in the three-month period ended
December 31, 2011 compared to
$668,309 in the three-month period
ended December 31, 2010. The
increase was the result of additions to our outside sales force and
by marketing expenditures to support the new product introduction
of NotifyMDM.
Research and Development expenses were $855,614 in the three-month period ended
December 31, 2011 compared to
$721,550 in the three-month period
ended December 31, 2010. The
increase was due to an increased investment in our design and
testing staff to accelerate the completion of our new NotifyMDM
product and meet the demands of a rapidly expanding smart phone and
tablet market.
General and Administrative expenses decreased to $409,159 in the three-month period ended
December 31, 2011 compared to
$426,037 for the three-month period
ended December 31, 2010. The
decrease was in compensation and legal expense.
About Notify Technology Corporation
Founded in 1994, Notify Technology Corporation is an independent
software vendor (ISV) who has specialized in wireless mobility
solutions and services for the past 11 years. Notify's products
including NotifyLink, NotifySync and NotifyMDM support all major
smart phone and tablet platforms independent of wireless carrier or
network. Notify sells its mobility products directly and
through authorized resellers internationally. Notify is an official
Apple iPhone Enterprise Development Partner, Android Development
Partner, BlackBerry Development Partner, Windows Mobile and Windows
Phone Development Partner, Symbian Alliance Member, and HP/Palm
Select Partner. The Company is headquartered in San Jose, California with product development
and technical support located in Canfield, Ohio. For more information, visit
http://www.notifycorp.com or contact 408-777-7930.
(Financial Tables Follow)
NOTIFY
TECHNOLOGY CORPORATION
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CONDENSED
STATEMENTS OF OPERATIONS
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|
|
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|
Three-Month
Periods
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|
|
Ended
December 31,
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2011
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2010
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(Unaudited)
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|
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Revenue:
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|
|
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Product sales
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$ 1,606,851
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$ 1,840,487
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Total revenue
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1,606,851
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1,840,487
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Cost of revenue:
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Product cost
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15,287
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9,076
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Royalty
payments
|
765
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1,977
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Total cost of revenue
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16,052
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11,053
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Gross profit
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1,590,799
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1,829,434
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Operating expenses:
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Research and
development
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855,594
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721,550
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Sales and marketing
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741,899
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668,309
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General and
administrative
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409,159
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426,037
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Total operating
expenses
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2,006,652
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1,815,896
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Income (loss) from
operations
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(415,853)
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13,538
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Interest income and other,
net
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5,092
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1,765
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Net income (loss) before
provision for
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income taxes
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(410,761)
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15,303
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Provision for income
taxes
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- -
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|
- -
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Net income (loss)
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$ (410,761)
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$ 15,303
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Basic net income (loss) per
share
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$ (5.82)
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$ 0.22
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Basic weighted average
shares
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70,541
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70,541
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outstanding
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Diluted net income (loss) per
share
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$ (5.82)
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$ 0.19
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Diluted weighted average
shares
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|
|
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|
outstanding
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70,541
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|
79,400
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NOTIFY
TECHNOLOGY CORPORATION
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Condensed
Balance Sheets
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Dec.
31,
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Sept.
30,
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2011
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2011
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Unaudited
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Audited
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Assets:
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Current assets:
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Cash and cash
equivalents
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$ 1,430,748
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$ 2,040,580
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Accounts receivable,
net
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876,071
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271,251
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Other assets
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43,527
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83,235
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Total current assets
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2,350,346
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2,395,066
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Non-current assets
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Property and equipment,
net
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|
286,906
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|
312,272
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|
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Lease deposits
|
|
|
15,602
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|
15,602
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|
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Total non-current
assets
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302,508
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327,874
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|
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Total assets
|
|
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$ 2,652,854
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$ 2,722,940
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Liabilities and shareholders'
deficit
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|
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Current liabilities:
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|
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Current portion of capital lease
obligation
|
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$
2,706
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$
2,665
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Accounts payable
|
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40,725
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|
65,103
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|
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Accrued payroll and related
liabilities
|
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519,318
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426,151
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Deferred revenue
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3,112,937
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2,839,051
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Other accrued
liabilities
|
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106,456
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128,915
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Total current
liabilities
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3,782,142
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|
3,461,885
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Long-term
liabilities:
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Long-term Deferred
revenue
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82,003
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88,142
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Long-term capital lease
obligations
|
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|
11,428
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|
12,120
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|
Total long-term
liabilities
|
|
|
93,431
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|
100,262
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Total liabilities
|
|
|
3,875,573
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3,562,147
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Shareholders'
deficit:
|
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|
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Preferred stock
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|
- -
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- -
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Common stock
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|
71
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|
71
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Additional paid-in
capital
|
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23,651,279
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|
23,624,030
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Accumulated deficit
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|
(24,874,069)
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(24,463,308)
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Total shareholders'
deficit
|
|
|
(1,222,719)
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|
(839,207)
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Total liabilities and
shareholders' deficit
|
|
$ 2,652,854
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$ 2,722,940
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Contacts:
At Notify Technology Corporation:
Jerry Rice, Chief Financial
Officer
Phone: 408-777-7927
jerry.rice@notifycorp.com
SOURCE Notify Technology Corporation