SAN JOSE, Calif., Feb. 22, 2013 /PRNewswire/ -- Notify
Technology Corporation (Pink Sheets: NTFY.PK) today announced
financial results for its fiscal quarter ended December 31, 2012.
Total revenue in the three-month period ended December 31, 2012 decreased 21% to $1,275,975 from $1,606,851 during the same period in the prior
year. The net loss for the three-month period ended
December 31, 2012 was $202,955 or $3.16
per diluted share which was an improvement from a net loss of
$410,761, or $5.82 per diluted share, reported for the same
period in the prior year. The decrease in revenue for the fiscal
quarter reflects a combination of a reduction in sales of the
NotifyLink and NotifySync products and the slower than anticipated
growth of the NotifyMDM product line.
"Fiscal 2013 will be a transition year as we expect a continued
reduction in demand for our NotifyLink products while ramping up
sales of our new NotifyMDM product." said David Hanabusa, President and Chief Executive
Officer of the company. "We are continually improving our MDM
product and have invested heavily in development assets to do
so. We have also streamlined our operation where we can
without sacrificing product design."
Sales and Marketing expenses were $489,025 in the three-month period ended
December 31, 2012 compared to
$741,899 in the three-month period
ended December 31, 2011. The
significant decrease in spending was primarily due to reductions in
compensation expense.
Research and Development expenses were $689,450 in the three-month period ended
December 31, 2012 compared to
$855,594 in the three-month period
ended December 31, 2011. The
decrease was due to reductions in compensation expense. We continue
to invest heavily in the development of the NotifyMDM product line
while still maintaining the capability to improve and support the
NotifySync and NotifyLink products.
General and Administrative expenses decreased to $289,382 in the three-month period ended
December 31, 2012 compared to
$409,159 for the three-month period
ended December 31, 2011. The
decrease was primarily due to incurring minimal SEC filing costs
and reducing executive compensation.
About Notify Technology Corporation
Founded in 1994,
Notify Technology Corporation is an independent software vendor
(ISV) who has specialized in wireless mobility solutions and
services for the past 11 years. Notify's products including
NotifyLink, NotifySync and NotifyMDM support all major smart phone
and tablet platforms independent of wireless carrier or
network. Notify sells its mobility products directly and
through authorized resellers internationally. Notify is an official
Apple iOS Enterprise Development Partner, Android Development
Partner, BlackBerry Development Partner, Windows Mobile and Windows
Phone Development Partner, and Symbian Alliance Member. The Company
is headquartered in San Jose,
California with product development and technical support
located in Canfield, Ohio. For
more information, visit http://www.notifycorp.com or contact
408-777-7930.
(Financial Tables Follow)
NOTIFY
TECHNOLOGY CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
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Three-Month Periods
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Ended
December 31,
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2012
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2011
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(unaudited)
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(audited)
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Revenue:
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Product revenue
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$
1,275,975
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$
1,606,851
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Total
revenue
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1,275,975
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1,606,851
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Cost of
revenue:
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Product cost
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4,239
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15,287
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Royalty payments
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8,768
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|
765
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Total cost
of revenue
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13,007
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16,052
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Gross
profit
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1,262,968
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1,590,799
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Operating
expenses:
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Research
and development
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689,450
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855,594
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Sales and
marketing
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489,025
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741,899
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General
and administrative
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289,382
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409,159
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Total
operating expenses
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1,467,857
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2,006,652
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Income
from operations
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(204,889)
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(415,853)
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Interest
income and other, net
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1,934
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5,092
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Net income
(loss) before provision for income taxes
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(202,955)
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(410,761)
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|
|
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Provision
for income taxes
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--
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--
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Net income
(loss)
|
$
(202,955)
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|
$
(410,761)
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|
|
|
|
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Basic net
income (loss) per share
|
$
(3.16)
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|
$
(5.82)
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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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Diluted
weighted net income (loss) per share
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$
(3.16)
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$
(5.82)
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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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|
|
|
|
|
|
|
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NOTIFY
TECHNOLOGY CORPORATION
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Condensed Balance Sheets
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Dec.
31,
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Dec.
31,
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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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$
1,358,963
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$
1,430,748
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Accounts
receivable, net
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129,287
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876,071
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Other
assets
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34,478
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43,527
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Total
current assets
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1,522,728
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2,350,346
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Non-current assets
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Property
and equipment, net
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160,818
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|
286,906
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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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|
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176,420
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|
302,508
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Total
assets
|
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|
$
1,699,148
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|
$
2,652,854
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|
Liabilities and shareholders'
deficit
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Current
liabilities:
|
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|
|
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Current
portion of capital lease obligation
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$
2,872
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$
2,706
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Accounts
payable
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23,786
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40,725
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Accrued
payroll and related liabilities
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427,827,
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519,318
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Deferred
revenue
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2,951,432
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3,112,937
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Other
accrued liabilities
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130,423
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106,456
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Total
current liabilities
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3,536,340
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3,782,142
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Long-term
liabilities:
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Long-term
Deferred revenue
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57,449
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82,003
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Long-term
capital lease obligations
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8,555
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11,428
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Total long-term
liabilities
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66,004
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93,431
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Total
liabilities
|
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|
3,602,344
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3,875,573
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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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23,706,639
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23,651,279
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Accumulated deficit
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(25,609,906)
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(24,874,069)
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Total
shareholders' deficit
|
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|
(1,903,196)
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(1,222,719)
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|
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Total
liabilities and shareholders' deficit
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$
1,699,148
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$
2,652,854
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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