SAN JOSE, Calif., Aug. 17, 2012 /PRNewswire/ -- Notify
Technology Corporation (NTFY.PK) today announced financial
results for its third fiscal quarter ended June 30, 2012.
Total fiscal third quarter revenue decreased to $1,452,985 in the three-month period ended
June 30, 2012 from $1,643,820 during the same period in the prior
year. The net loss for the three month period ended
June 30, 2012 was $95,556 or $1.35
per diluted share. The company's financial performance was improved
from a net loss of $195,715 or
$2.77 per diluted share, reported for
the same period in the prior year. The improvement in net income
for the fiscal quarter reflects the combined impact of a decline in
sales of the NotifyLink product line offset by reductions in
headcount and spending. Despite the reductions in spending,
the Company continued its investment in developing the new mobile
device management product line, NotifyMDM.
"We took steps in March 2012 to
streamline our operations while still maintaining our ability to
service our existing customers and continue investing our NotifyMDM
product. We believe the success of NotifyMDM is critical to
the Company's long term success," said Paul
DePond, President and Chief Executive Officer of the
company. "We continue to build relationships with OEM and reseller
partners for NotifyMDM. A particular focus will be providing
companies of all sizes a solution for their current or future Bring
Your Own Device ("BYOD") initiatives. BYOD refers to the
growing trend of companies allowing employee owned mobile devices
to be used at work."
Sales and Marketing expenses were $414,692 in the three-month period ended
June 30, 2012 compared to
$642,613 in the three-month period
ended June 30, 2011. The
decrease in spending was the result of reductions in our direct
sales force and a reduction in related sales costs.
Research and Development expenses were $717,138 in the three-month period ended
June 30, 2012 compared to
$798,786 in the three-month period
ended June 30, 2011. The
decrease was due to minor headcount reductions in our test
department. Our commitment to product development remains a
critical objective as we continue to invest in our NotifyMDM
product to meet the demands of a rapidly expanding smart phone and
tablet market.
General and Administrative expenses decreased to $403,371 in the three-month period ended
June 30, 2012 compared to
$401,948 for the three-month period
ended June 30, 2011. Although
we have reduced compensation costs, we incurred increased legal
costs related to the reduction in force in March 2012.
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 iOS Enterprise Development Partner, Android Development
Partner, BlackBerry Development Partner, Windows Mobile and Windows
Phone Development Partner, and Symbian Alliance Member. 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.
Contacts:
At Notify Technology Corporation:
Jerry Rice, Chief Financial
Officer
Phone: 408-777-7927
jerry.rice@notifycorp.com
(Financial Tables Follow)
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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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|
Nine-Month
Periods
|
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Ended June
30,
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Ended June
30,
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|
|
|
2012
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|
2011
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|
2012
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2011
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|
|
|
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Revenue:
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|
|
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Product
revenue
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$
1,452,985
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$
1,643,820
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|
$
4,684,361
|
|
$
5,197,071
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|
Total
revenue
|
1,452,985
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|
1,643,820
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4,684,361
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5,197,071
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|
|
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|
|
|
|
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Cost of
revenue:
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Product
cost
|
8,388
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|
3,549
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|
48,014
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|
20,240
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|
Royalty
payments
|
8,045
|
|
978
|
|
12,216
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|
4,096
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|
Total cost of
revenue
|
16,433
|
|
4,527
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|
60,230
|
|
24,336
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|
Gross
profit
|
1,436,552
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|
1,639,293
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|
4,624,131
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5,172,735
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Operating
expenses:
|
|
|
|
|
|
|
|
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Research and
development
|
717,138
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|
798,786
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2,424,841
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2,283,120
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Sales and
marketing
|
414,692
|
|
642,613
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1,822,104
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1,902,787
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General and
administrative
|
403,371
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401,948
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|
1,199,275
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1,266,361
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Total operating
expenses
|
1,535,201
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|
1,843,347
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5,446,220
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5,452,268
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|
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Income/(loss) from
operations
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(98,649)
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(204,054)
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(822,089)
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(279,533)
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|
|
|
|
|
|
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Other income (expense),
net
|
3,093
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|
8,339
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|
10,309
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|
12,194
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|
|
|
|
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Net income
(loss)
|
$
(95,556)
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|
$
(195,715)
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|
$
(811,780)
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|
$
(267,339)
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|
|
|
|
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Basic net income (loss) per
share
|
$
(1.35)
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|
$
(2.77)
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|
$
(11.49)
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|
$
(3.79)
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Basic weighted average
shares outstanding
|
70,541
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|
70,541
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|
70,541
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|
70,541
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|
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|
|
|
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Diluted net income (loss)
per share
|
$
(1.35)
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|
$
(2.77)
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|
$
(11.49)
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|
$
(3.79)
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|
|
|
|
|
|
|
|
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Diluted weighted average
shares outstanding
|
70,541
|
|
70,541
|
|
70,541
|
|
70,541
|
|
|
|
|
|
|
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NOTIFY
TECHNOLOGY CORPORATION
|
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Condensed Balance Sheets
|
|
|
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June 30,
2012
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Sept. 30,
2011
|
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Unaudited
|
|
Audited
|
|
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Assets:
|
|
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|
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Current
assets:
|
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|
|
|
|
|
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Cash and
cash equivalents
|
|
|
$
919,730
|
|
$
2,040,580
|
|
|
Accounts
receivable, net
|
|
|
210,791
|
|
271,251
|
|
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Other
assets
|
|
|
28,294
|
|
83,235
|
|
|
Total
current assets
|
|
|
1,158,815
|
|
2,395,066
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|
|
Non-current assets
|
|
|
|
|
|
|
|
Property
and equipment, net
|
|
|
219,819
|
|
312,272
|
|
|
Lease
deposits
|
|
|
15,602
|
|
15,602
|
|
|
Total
non-current assets
|
|
|
235,421
|
|
327,874
|
|
|
Total
assets
|
|
|
$
1,394,236
|
|
$
2,722,940
|
|
|
Liabilities and shareholders'
deficit
|
|
|
|
|
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|
Current
liabilities:
|
|
|
|
|
|
|
|
Current
portion of capital lease obligation
|
|
|
$
2,788
|
|
$
2,665
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|
|
Accounts
payable
|
|
|
64,049
|
|
65,103
|
|
|
Accrued
payroll and related liabilities
|
|
|
436,516
|
|
426,151
|
|
|
Deferred
revenue
|
|
|
2,303,104
|
|
2,839,051
|
|
|
Other
accrued liabilities
|
|
|
103,795
|
|
128,915
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|
|
Total
current liabilities
|
|
|
2,910,252
|
|
3,461,885
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|
|
Long-term
liabilities:
|
|
|
|
|
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Long-term
deferred revenue
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|
|
69,726
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|
88,142
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|
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Long-term
capital lease obligations
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|
|
10,013
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|
12,120
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|
|
Total long-term
liabilities
|
|
|
79,739
|
|
100,262
|
|
|
Total
liabilities
|
|
|
2,989,991
|
|
3,562,147
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|
|
Shareholders' deficit:
|
|
|
|
|
|
|
|
Preferred
stock
|
|
|
-
-
|
|
-
-
|
|
|
Common
stock
|
|
|
71
|
|
71
|
|
|
Additional
paid-in capital
|
|
|
23,679,262
|
|
23,624,030
|
|
|
Accumulated deficit
|
|
|
(25,275,088)
|
|
(24,463,308)
|
|
|
Total
shareholders' deficit
|
|
|
(1,595,755)
|
|
(839,207)
|
|
|
Total
liabilities and shareholders' deficit
|
|
$
1,394,236
|
|
$
2,722,940
|
|
|
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SOURCE Notify Technology Corporation