Notify Technology Reports Preliminary Results for the First Fiscal Quarter Ended December 31, 2010

News provided by

Notify Technology Corporation

Mar 02, 2011, 09:30 ET

SAN JOSE, Calif., March 2, 2011 /PRNewswire/ -- Notify Technology Corporation (Pink Sheets: NTFY) today announced preliminary financial results for its first fiscal quarter ended December 31, 2010.

Total fiscal first quarter revenue increased to $1,840,487 in the three-month period ended December 31, 2010 from $1,796,645 during the same period in the prior year.  Net income for the three month period ended December 31, 2010 was $15,303 or $0.00 per diluted share. The company's financial performance was down from a net income of $131,653 or $0.01 per diluted share, reported for the same period in the prior year. The decrease in net income for the fiscal quarter reflects our continued investment in developing a new product line for release in April 2011.  

The company also experienced a 73% increase in cash and cash equivalents at December 31, 2010 as compared to cash and cash equivalents at December 31, 2009.  

"Although sales have continued to be healthy, we look forward to releasing our new mobile device management product, NotifyMDM," said Paul DePond, President and Chief Executive Officer of the company. "The mobility market continues to expand at historic rates creating a fantastic opportunity for Notify's next generation product."

Sales and Marketing expenses were $668,309 in the three-month period ended December 31, 2010 compared to $715,990 in the three-month period ended December 31, 2009.  The decrease was primarily the result of a decrease in salary and commission expenses.

Research and Development expenses were $721,550 in the three-month period ended December 31, 2010 compared to $453,850 in the three-month period ended December 31, 2009.  The increase was due to an increased investment in our design and testing staff to meet the demands of a rapidly expanding smart phone market.  Our development efforts were devoted to creating our new NotifyMDM product.

General and Administrative expenses were decreased to $426,037 in the three-month period ended December 31, 2010 compared to $485,184 for the three-month period ended December 31, 2009.  The decrease is primarily due to lower compensation expense.

About Notify Technology Corporation

Founded in 1994, Notify Technology Corporation (NTFY.PK) is an independent software vendor (ISV) who has specialized in wireless mobility solutions and services for the past 10 years. Notify's products support all major mobile device 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, Microsoft Development Partner, HP/Palm Select Partner, and Symbian Alliance Partner. The Company is headquartered in San Jose, California. For more information, visit http://www.notifycorp.com or contact 408-777-7930.

Forward-Looking Statements: This press release contains forward-looking statements related to Notify Technology Corporation that involve risks and uncertainties, including, but not limited to, statements regarding the changes in asset balances on the balance sheet, the launch of new wireless devices and product lines and the improving performance of the Company's wireless product.  Those statements are based on unaudited current information and expectations and there are important factors that could cause actual results to differ materially from those anticipated by such statements. These risks include, but are not limited to, Notify's ability to deliver products and manage growth, its ability to continue to improve its existing products or develop new products or technologies, and its ability to maintain revenue growth as well as other risks.  In particular, management cannot predict future NotifyLink and NotifySync revenues with any accuracy and does not know whether NotifyLink and NotifySync revenues will continue to grow at the rates recently experienced, if at all.  Increasing NotifyLink and NotifySync revenues will require, among other things, continued investments in the Company's sales and marketing organization and Notify has limited available cash resources to make these investments.  These forward-looking statements are made in reliance on the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995.  For further information about these factors that could affect Notify Technology's future results, please see the Company's filings with the Securities and Exchange Commission.  Prospective investors are cautioned that forward-looking statements are not guarantees of performance.  Actual results may differ materially from management's expectations.

Contacts:

At Notify Technology Corporation:

Jerry Rice, Chief Financial Officer

Phone: 408-777-7927

[email protected]

(Financial Tables Follow)

NOTIFY TECHNOLOGY CORPORATION

CONDENSED STATEMENTS OF INCOME


Three-Month Periods

Ended December 31,


2010

2009


(Unaudited)





Revenue:


  Product sales

$   1,840,487

$   1,796,645

Total revenue

1,840,487

1,796,645




Cost of revenue:


  Product cost

9,076

9,064

  Royalty payments

1,977

1,991

Total cost of revenue

11,053

11,055

Gross profit

1,829,434

1,785,590





Operating expenses:



Research and development

721,550

453,850

Sales and marketing

668,309

715,990

General and administrative

426,037

485,184

Total operating expenses

1,815,896

1,529,387





Income from operations

13,538

130,566





Interest income and other, net

1,765

1,087

Net income before provision for income taxes

15,303

131,653




Provision for income taxes

- -

- -

Net income

$  15,303

$  131,653





Basic net income per share

$  0.00

$  0.01





Basic weighted average shares outstanding

14,211,217

14,075,662




Diluted net income per share

$  0.00

$  0.01




Diluted weighted average shares outstanding

15,880,672

15,904,358




NOTIFY TECHNOLOGY CORPORATION

Condensed Balance Sheets


Dec. 31,

Dec. 31,


2010

2009


Unaudited

Audited

Assets:



Current assets:



Cash and cash equivalents

$  2,964,418

$  2,526,654

Accounts receivable, net

407,248

292,040

Other assets

49,317

44,570

Total current assets

3,420,983

2,863,264

Non-current assets



Property and equipment, net

292,468

306,380

Lease deposits

15,602

15,602

Total non-current assets

308,070

321,982

Total assets

$ 3,729,053

$  3,185,246

Liabilities and shareholders' deficit




Current liabilities:



Current portion of capital lease obligation

$         2,545

$       3,369

Accounts payable

106,445

55,378

Accrued payroll and related liabilities

453,317

405,203

Deferred revenue

3,327,513

2,927,067

Other accrued liabilities

141,005

123,066

Total current liabilities

4,030,825

3,514,083

Long-term liabilities:



Long-term Deferred revenue

106,557

112,696

Long-term capital lease obligations

3,222

3,174

    Total long-term liabilities

109,779

115,870

Total liabilities

4,140,604

3,629,953

Shareholders' deficit:



Preferred stock

- -

- -

Common stock

14,111

14,111

Additional paid-in capital

23,534,575

23,516,722

Accumulated deficit

(23,960,237)

(24,975,540)

Total shareholders' deficit

(411,551)

(444,707)

Total liabilities and shareholders' deficit

$  3,729,053

$  3,185,246

SOURCE Notify Technology Corporation

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