SAN JOSE, Calif., May 16, 2012 /PRNewswire/ -- Notify Technology
Corporation (NTFY.PK) today announced financial results
for its second fiscal quarter ended March
31, 2012.
Total fiscal second quarter revenue decreased to $1,624,524 in the three-month period ended
March 31, 2012 from $1,712,765 during the same period in the prior
year. The net loss for the three month period ended
March 31, 2012 was $305,462 or $(4.33)
per diluted share. The company's financial performance was down
from a net loss of $86,926 or
$1.23 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.
"We released our NotifyMDM integrated with CommonTime's MSuite
product in April 2012 now available
to CommonTime's new and current customers around the world as
CommonTime MDM," said Paul DePond,
President and Chief Executive Officer of the company. "We also took
steps to streamline our operations while still maintaining our
ability to service our existing customers and continue enhancing
our NotifyMDM product."
Sales and Marketing expenses were $665,512 in the three-month period ended
March 31, 2012 compared to
$591,866 in the three-month period
ended March 31, 2011. 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 $852,109 in the three-month period ended
March 31, 2012 compared to
$762,783 in the three-month period
ended March 31, 2011. The
increase was due to an increased investment in our design and
testing staff to accelerate the development of our NotifyMDM
product and meet the demands of a rapidly expanding smart phone and
tablet market.
General and Administrative expenses decreased to $386,745 in the three-month period ended
March 31, 2012 compared to
$438,376 for the three-month period
ended March 31, 2011. The
decrease was in compensation and legal expense.
About Notify Technology Corporation
Founded in 1994, Notify Technology Corporation is an independent
software vendor (ISV) who has specialized in wireless mobility
solutions and services for the past 11 years. Notify's products
including NotifyLink, NotifySync and NotifyMDM support all major
smart phone and tablet platforms independent of wireless carrier or
network. Notify sells its mobility products directly and
through authorized resellers internationally. Notify is an official
Apple iPhone Enterprise Development Partner, Android Development
Partner, BlackBerry Development Partner, Windows Mobile and Windows
Phone Development Partner. The Company is headquartered in
San Jose, California with product
development and technical support located in Canfield, Ohio. For more information, visit
http://www.notifycorp.com or contact 408-777-7930.
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(Financial
Tables Follow)
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NOTIFY
TECHNOLOGY CORPORATION
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CONDENSED STATEMENTS OF OPERATIONS
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Three-Month Periods
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Six-Month Periods
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Ended
March 31,
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Ended
March 31,
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2012
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2011
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2012
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2011
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Revenue:
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Product revenue
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$
1,624,524
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$
1,712,765
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$
3,231,375
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$
3,553,251
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Total
revenue
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1,624,524
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1,712,765
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3,231,375
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3,553,251
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Cost of
revenue:
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Product cost
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24,339
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7,615
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39,626
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16,691
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Royalty payments
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3,405
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1,141
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4,170
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3,118
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Total cost
of revenue
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27,744
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8,756
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43,796
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19,809
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Gross
profit
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1,596,780
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1,704,009
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3,187,579
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3,533,442
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Operating
expenses:
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Research
and development
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852,109
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762,783
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1,707,702
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1,484,333
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Sales and
marketing
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665,512
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591,866
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1,407,412
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1,260,174
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General
and administrative
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386,745
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438,376
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795,904
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864,413
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Total
operating expenses
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1,904,366
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1,793,025
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3,911,018
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3,608,920
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Income/(loss) from operations
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(307,586)
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(89,016)
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(723,439)
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(75,478)
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Other
interest (expense), net
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2,124
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2,090
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7,216
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3,855
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Net income
(loss)
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$
(305,462)
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$
(86,926)
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$
(716,223)
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$
(71,623)
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Basic net
income (loss) per share
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$
(4.33)
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$
(1.23)
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$
(10.10)
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$
(1.02)
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Basic
weighted average shares outstanding
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70,541
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70,541
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70,541
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70,541
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Diluted
net income (loss) per share
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$
(4.33)
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$
(1.23)
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$
(10.10)
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$
(1.02)
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Diluted
weighted average shares outstanding
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70,541
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70,541
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70,541
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70,541
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NOTIFY
TECHNOLOGY CORPORATION
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Condensed Balance Sheets
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Mar.
31,
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Sept.
30,
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2012
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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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$
1,179,898
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$
2,040,580
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Accounts
receivable, net
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347,567
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271,251
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Other
assets
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41,701
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83,235
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Total
current assets
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1,569,166
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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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254,112
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312,272
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Lease
deposits
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15,602
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15,602
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Total
non-current assets
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269,714
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327,874
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Total
assets
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$
1,838,880
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$
2,722,940
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Liabilities and shareholders'
deficit
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Current
liabilities:
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Current
portion of capital lease obligation
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$
2,746
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$
2,665
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Accounts
payable
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18,081
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65,103
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Accrued
payroll and related liabilities
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408,150
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426,151
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Deferred
revenue
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2,728,360
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2,839,051
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Other
accrued liabilities
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109,142
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128,915
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Total
current liabilities
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3,266,479
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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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75,865
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88,142
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Long-term
capital lease obligations
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10,726
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12,120
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Total long-term
liabilities
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86,591
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100,262
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Total
liabilities
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3,353,070
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3,562,147
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Shareholders' deficit:
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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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23,665,271
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23,624,030
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Accumulated deficit
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(25,179,532)
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(24,463,308)
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Total
shareholders' deficit
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(1,514,190)
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(839,207)
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Total
liabilities and shareholders' deficit
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$
1,838,880
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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