Notify Technology Reports Results for the Second Fiscal Quarter Ended March 31, 2012
SAN JOSE, Calif., May 16, 2012 /PRNewswire/ -- Notify Technology Corporation (NTFY.PK) today announced financial results for its second fiscal quarter ended March 31, 2012.
Total fiscal second quarter revenue decreased to $1,624,524 in the three-month period ended March 31, 2012 from $1,712,765 during the same period in the prior year. The net loss for the three month period ended March 31, 2012 was $305,462 or $(4.33) per diluted share. The company's financial performance was down from a net loss of $86,926 or $1.23 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.
"We released our NotifyMDM integrated with CommonTime's MSuite product in April 2012 now available to CommonTime's new and current customers around the world as CommonTime MDM," said Paul DePond, President and Chief Executive Officer of the company. "We also took steps to streamline our operations while still maintaining our ability to service our existing customers and continue enhancing our NotifyMDM product."
Sales and Marketing expenses were $665,512 in the three-month period ended March 31, 2012 compared to $591,866 in the three-month period ended March 31, 2011. 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 $852,109 in the three-month period ended March 31, 2012 compared to $762,783 in the three-month period ended March 31, 2011. The increase was due to an increased investment in our design and testing staff to accelerate the development of our NotifyMDM product and meet the demands of a rapidly expanding smart phone and tablet market.
General and Administrative expenses decreased to $386,745 in the three-month period ended March 31, 2012 compared to $438,376 for the three-month period ended March 31, 2011. 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. 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) |
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| NOTIFY TECHNOLOGY CORPORATION |
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| CONDENSED STATEMENTS OF OPERATIONS |
||||||||||
| Three-Month Periods |
Six-Month Periods |
|||||||||
| Ended March 31, |
Ended March 31, |
|||||||||
| 2012 |
2011 |
2012 |
2011 |
|||||||
| Revenue: |
||||||||||
| Product revenue |
$ 1,624,524 |
$ 1,712,765 |
$ 3,231,375 |
$ 3,553,251 |
||||||
| Total revenue |
1,624,524 |
1,712,765 |
3,231,375 |
3,553,251 |
||||||
| Cost of revenue: |
||||||||||
| Product cost |
24,339 |
7,615 |
39,626 |
16,691 |
||||||
| Royalty payments |
3,405 |
1,141 |
4,170 |
3,118 |
||||||
| Total cost of revenue |
27,744 |
8,756 |
43,796 |
19,809 |
||||||
| Gross profit |
1,596,780 |
1,704,009 |
3,187,579 |
3,533,442 |
||||||
| Operating expenses: |
||||||||||
| Research and development |
852,109 |
762,783 |
1,707,702 |
1,484,333 |
||||||
| Sales and marketing |
665,512 |
591,866 |
1,407,412 |
1,260,174 |
||||||
| General and administrative |
386,745 |
438,376 |
795,904 |
864,413 |
||||||
| Total operating expenses |
1,904,366 |
1,793,025 |
3,911,018 |
3,608,920 |
||||||
| Income/(loss) from operations |
(307,586) |
(89,016) |
(723,439) |
(75,478) |
||||||
| Other interest (expense), net |
2,124 |
2,090 |
7,216 |
3,855 |
||||||
| Net income (loss) |
$ (305,462) |
$ (86,926) |
$ (716,223) |
$ (71,623) |
||||||
| Basic net income (loss) per share |
$ (4.33) |
$ (1.23) |
$ (10.10) |
$ (1.02) |
||||||
| Basic weighted average shares outstanding |
70,541 |
70,541 |
70,541 |
70,541 |
||||||
| Diluted net income (loss) per share |
$ (4.33) |
$ (1.23) |
$ (10.10) |
$ (1.02) |
||||||
| Diluted weighted average shares outstanding |
70,541 |
70,541 |
70,541 |
70,541 |
||||||
| NOTIFY TECHNOLOGY CORPORATION |
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| Condensed Balance Sheets |
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| Mar. 31, |
Sept. 30, |
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| 2012 |
2011 |
|||||||
| Unaudited |
Audited |
|||||||
| Assets: |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ 1,179,898 |
$ 2,040,580 |
||||||
| Accounts receivable, net |
347,567 |
271,251 |
||||||
| Other assets |
41,701 |
83,235 |
||||||
| Total current assets |
1,569,166 |
2,395,066 |
||||||
| Non-current assets |
||||||||
| Property and equipment, net |
254,112 |
312,272 |
||||||
| Lease deposits |
15,602 |
15,602 |
||||||
| Total non-current assets |
269,714 |
327,874 |
||||||
| Total assets |
$ 1,838,880 |
$ 2,722,940 |
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| Liabilities and shareholders' deficit |
||||||||
| Current liabilities: |
||||||||
| Current portion of capital lease obligation |
$ 2,746 |
$ 2,665 |
||||||
| Accounts payable |
18,081 |
65,103 |
||||||
| Accrued payroll and related liabilities |
408,150 |
426,151 |
||||||
| Deferred revenue |
2,728,360 |
2,839,051 |
||||||
| Other accrued liabilities |
109,142 |
128,915 |
||||||
| Total current liabilities |
3,266,479 |
3,461,885 |
||||||
| Long-term liabilities: |
||||||||
| Long-term Deferred revenue |
75,865 |
88,142 |
||||||
| Long-term capital lease obligations |
10,726 |
12,120 |
||||||
| Total long-term liabilities |
86,591 |
100,262 |
||||||
| Total liabilities |
3,353,070 |
3,562,147 |
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| Shareholders' deficit: |
||||||||
| Preferred stock |
- - |
- - |
||||||
| Common stock |
71 |
71 |
||||||
| Additional paid-in capital |
23,665,271 |
23,624,030 |
||||||
| Accumulated deficit |
(25,179,532) |
(24,463,308) |
||||||
| Total shareholders' deficit |
(1,514,190) |
(839,207) |
||||||
| Total liabilities and shareholders' deficit |
$ 1,838,880 |
$ 2,722,940 |
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Contacts:
At Notify Technology Corporation:
Jerry Rice, Chief Financial Officer
Phone: 408-777-7927
[email protected]
SOURCE Notify Technology Corporation
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