Notify Technology Reports Results for the Fiscal Year Ended September 30, 2012

News provided by

Notify Technology Corporation

Dec 22, 2012, 02:07 ET

SAN JOSE, Calif., Dec. 22, 2012 /PRNewswire/ -- Notify Technology Corporation (Pink Sheets: NTFY.PK) today announced financial results for its fiscal year ended September 30, 2012.

Total fiscal twelve-month revenue decreased 11% to $6,107,445 in the twelve-month period ended September 30, 2012 from $6,833,885 during the same period in the prior year.  The net loss for the twelve month period ended September 30, 2012 was $943,644 or $13.38 per diluted share. The company's financial performance dropped from a net loss of $487,768, or $6.91 per diluted share, reported for the same period in the prior year. The decrease in net income for the fiscal year 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.

"This has been a challenging year for Notify as we have found the mobile device management (MDM) market to be much more competitive than we expected" 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 $2,197,826 in the twelve-month period ended September 30, 2012 compared to $2,504,948 in the twelve-month period ended September 30, 2011.  Spending was focused on the NotifyMDM product line and marketing of the NotifyLink product line was deemphasized.

Research and Development expenses were $3,124,886 in the twelve-month period ended September 30, 2012 compared to $3,079,921 in the twelve-month period ended September 30, 2011.  The increase was due to the investment to expedite 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 $1,639,111 in the twelve-month period ended September 30, 2012 compared to $1,722,342 for the twelve-month period ended September 30, 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. 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

Twelve-Month Periods

Ended September 30,

Ended September 30,


2012

2011

2012

2011


(unaudited)

(audited)

(unaudited)

(audited)










Revenue:







Product revenue

$ 1,423,085

$ 1,636,814

$6,107,445

$ 6,833,885

Total revenue

1,423,085

1,636,814

6,107,445

6,833,885


















Cost of revenue:








Product cost

34,013

4,449

82,027

24,689

Royalty payments

7,485

1,195

19,700

5,291

Total cost of revenue

41,498

5,644

101,727

29,980

Gross profit

1,381,587

1,631,170

6,005,718

6,803,905










Operating expenses:








Research and development

700,046

796,801

3,124,886

3,079,921

Sales and marketing

375,721

602,161

2,197,826

2,504,948

General and administrative

439,836

455,981

1,639,111

1,722,342

Total operating expenses

1,515,603

1,854,943

6,961,823

7,307,211










Income from operations

(134,016)

(223,773)

(956,105)

(503,306)










Interest income and other, net

2,152

3,344

12,461

15,538










Net income (loss) before provision for income taxes

(131,864)

(220,430)

(943,644)

(487,768)









Provision for income taxes

--

--

--

--

Net income (loss)

$ (131,864)

$ (220,430)

$ (943,644)

$(487,768)










Basic net income (loss) per share

$ (1.87)

$ (3.12)

$ (13.38)

$ (6.91)










Basic weighted average shares outstanding

70,556

70,556

70,556

70,556









Diluted weighted net income (loss) per share

$ (1.87)

$ (3.15)

$ (13.38)

$ (6.91)









Diluted weighted average shares outstanding

70,556

70,556

70,556

70,556
















Notify Technology CORPORATION

Condensed Balance Sheets

 




Sept. 30,

Sept. 30,




2012

2011




(unaudited)

(audited)

Assets:






Current assets:






Cash and cash equivalents

$  902,447

$  2,040,580

Accounts receivable, net

156,492

271,251

Other assets

110,586

83,235

Total current assets

1,169,525

2,395,066

Non-current assets






Property and equipment, net

192,460

312,272

Lease deposits

15,602

15,602

Total non-current assets

208,062

327,874

Total assets

$ 1,377,587

$  2,722,940

Liabilities and shareholders' deficit







Current liabilities:






Current portion of capital lease obligation

$         2,830

$       2,665

Accounts payable

67,534

65,103

Accrued payroll and related liabilities

330,571

426,151

Deferred revenue

2,453,860

2,839,051

Other accrued liabilities

163,832

128,915

Total current liabilities

3,018,627

3,461,885

Long-term liabilities:






Long-term Deferred revenue

63,588

88,142

Long-term capital lease obligations

9,289

12,120

     Total long-term liabilities

72,877

100,262

Total liabilities

3,091,504

3,562,147

Shareholders' deficit:






Preferred stock

- -

- -

Common stock

71

71

Additional paid-in capital

23,692,964

23,624,030

Accumulated deficit

(25,406,952)

(24,463,308)

Total shareholders' deficit

(1,713,917)

(839,207)

Total liabilities and shareholders' deficit


$  1,377,587

$  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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