Notify Technology Reports Results for the First Fiscal Quarter Ended December 31, 2011

News provided by

Notify Technology Corporation

Mar 08, 2012, 09:30 ET

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

CONDENSED STATEMENTS OF OPERATIONS


Three-Month Periods

Ended December 31,


2011

2010


(Unaudited)





Revenue:


  Product sales

$   1,606,851

$   1,840,487

Total revenue

1,606,851

1,840,487








Cost of revenue:


  Product cost

15,287

9,076

  Royalty payments

765

1,977

Total cost of revenue

16,052

11,053

Gross profit

1,590,799

1,829,434





Operating expenses:



Research and development

855,594

721,550

Sales and marketing

741,899

668,309

General and administrative

409,159

426,037

Total operating expenses

2,006,652

1,815,896





Income (loss) from operations

(415,853)

13,538





Interest income and other, net

5,092

1,765

Net income (loss) before provision for


income taxes

 (410,761)

  15,303




Provision for income taxes

- -

- -

Net income (loss)

$  (410,761)

$  15,303





Basic net income (loss) per share



$  (5.82)

$  0.22





Basic weighted average shares

70,541

70,541

outstanding






Diluted net income (loss) per share



$  (5.82)

$  0.19




Diluted weighted average shares


outstanding

70,541

79,400




NOTIFY TECHNOLOGY CORPORATION

Condensed Balance Sheets




Dec. 31,

Sept. 30,




2011

2011




Unaudited

Audited

Assets:





Current assets:





Cash and cash equivalents

$  1,430,748

$  2,040,580

Accounts receivable, net

876,071

271,251

Other assets

43,527

83,235

Total current assets

2,350,346

2,395,066

Non-current assets





Property and equipment, net

286,906

312,272

Lease deposits

15,602

15,602

Total non-current assets

302,508

327,874

Total assets

$ 2,652,854

$  2,722,940

Liabilities and shareholders' deficit






Current liabilities:





Current portion of capital lease obligation

$         2,706

$       2,665

Accounts payable

40,725

65,103

Accrued payroll and related liabilities

519,318

426,151

Deferred revenue

3,112,937

2,839,051

Other accrued liabilities

106,456

128,915

Total current liabilities

3,782,142

3,461,885

Long-term liabilities:





Long-term Deferred revenue

82,003

88,142

Long-term capital lease obligations

11,428

12,120

    Total long-term liabilities

93,431

100,262

Total liabilities

3,875,573

3,562,147

Shareholders' deficit:





Preferred stock

- -

- -

Common stock

71

71

Additional paid-in capital

23,651,279

23,624,030

Accumulated deficit

(24,874,069)

(24,463,308)

Total shareholders' deficit

(1,222,719)

(839,207)

Total liabilities and shareholders' deficit


$  2,652,854

$  2,722,940

Contacts:

At Notify Technology Corporation:
Jerry Rice, Chief Financial Officer
Phone: 408-777-7927
[email protected]

SOURCE Notify Technology Corporation

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