Notify Technology Reports Results for the Fiscal Quarter Ended December 31, 2012

News provided by

Notify Technology Corporation

Feb 22, 2013, 03:20 ET

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

 





Three-Month Periods

Ended December 31,


2012

2011


(unaudited)

(audited)






Revenue:



   Product revenue

$  1,275,975

$ 1,606,851

Total revenue

1,275,975

1,606,851










Cost of revenue:



   Product cost

4,239

15,287

   Royalty payments

8,768

765

Total cost of revenue

13,007

16,052

Gross profit

1,262,968

1,590,799






Operating expenses:




Research and development

689,450

855,594

Sales and marketing

489,025

741,899

General and administrative

289,382

409,159

Total operating expenses

1,467,857

2,006,652






Income from operations

(204,889)

(415,853)






Interest income and other, net

1,934

5,092






Net income (loss) before provision for income taxes

(202,955)

(410,761)





Provision for income taxes

--

--

Net income (loss)

$  (202,955)

$  (410,761)






Basic net income (loss) per share

$   (3.16)

$  (5.82)






Basic weighted average shares outstanding

70,541

70,541





Diluted weighted net income (loss) per share

$  (3.16)

$  (5.82)





Diluted weighted average shares outstanding

70,541

70,541








NOTIFY TECHNOLOGY CORPORATION

Condensed Balance Sheets

 




Dec. 31,

Dec. 31,




2012

2011




(unaudited)

(audited)

Assets:






Current assets:






Cash and cash equivalents

$  1,358,963

$  1,430,748

Accounts receivable, net

129,287

876,071

Other assets

34,478

43,527

Total current assets

1,522,728

2,350,346

Non-current assets






Property and equipment, net

160,818

286,906

Lease deposits

15,602

15,602

Total non-current assets

176,420

302,508

Total assets

$ 1,699,148

$  2,652,854

Liabilities and shareholders' deficit







Current liabilities:






Current portion of capital lease obligation

$         2,872

$       2,706

Accounts payable

23,786

40,725

Accrued payroll and related liabilities

427,827,

519,318

Deferred revenue

2,951,432

3,112,937

Other accrued liabilities

130,423

106,456

Total current liabilities

3,536,340

3,782,142

Long-term liabilities:






Long-term Deferred revenue

57,449

82,003

Long-term capital lease obligations

8,555

11,428

     Total long-term liabilities

66,004

93,431

Total liabilities

3,602,344

3,875,573

Shareholders' deficit:






Preferred stock

- -

- -

Common stock

71

71

Additional paid-in capital

23,706,639

23,651,279

Accumulated deficit

(25,609,906)

(24,874,069)

Total shareholders' deficit

(1,903,196)

(1,222,719)

Total liabilities and shareholders' deficit


$  1,699,148

$  2,652,854










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

SOURCE Notify Technology Corporation

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