Notify Technology Reports Results for the Fiscal Quarter Ended June 30, 2008
NotifyLink revenue increases over 22 percent from same quarter in prior fiscal year.
SAN JOSE, Calif., Aug. 13 /PRNewswire-FirstCall/ -- Notify Technology Corporation (OTC Bulletin Board: NTFY) today announced financial results for its fiscal quarter ended June 30, 2008.
Revenue from the NotifyLink(R) software product line increased 22% to $1,144,800 for the three month period ended June 30, 2008, from $937,607 during the same period last year. The gross margin remained consistent at 97.1% and 96.7% for the three month periods ending June 30, 2008 and 2007, respectively. The Company showed a net loss for the fiscal quarter ended June 30, 2008, of $83,067 or a net loss per share of $(0.01), compared to a net loss of $93,766, or a net loss per share of $(0.01), reported for the three month period ended June 30, 2007.
Sales expenses were $472,378 in the three month period ended June 30, 2008 compared to $369,618 in the same period of fiscal 2007. Research and development spending increased to $414,788 in the three month period ended June 30, 2008 compared to $328,035 in the same period of fiscal 2007. The overall increase in research and development expense is a direct result of adding engineering expenses to support additional email platforms and new wireless devices. General and administrative expenses were $310,079 in the three month period ended June 30, 2008 compared to $302,926 in the same period of fiscal 2007.
“We are excited to announce another quarter of over 20% growth from the same quarter in the prior year. Our increased R&D spending is driven by our increased investment in expanding both the email platforms and the devices we support. Our recent announcement of adding wireless synchronization support for Google Gmail and Google Calendar services and the imminent release of our iPhone solution are examples of that commitment,” said Paul DePond, President of Notify Technology. “We are looking forward to reaping the rewards of our investment in our new development programs throughout the coming year.”
About Notify Technology Corporation
Founded in 1994, Notify Technology Corporation, (OTC Bulletin Board: NTFY) is an innovative software company developing mobility products for organizations of all sizes. Notify’s wireless solutions provide secure synchronized email and PIM access and management to any size organization on a variety of wireless devices and networks. Notify sells its wireless products directly and through authorized resellers internationally. The company is headquartered in San Jose, California. For more information, visit http://www.notifycorp.com or contact 408-777-7920.
Forward-Looking Statements: This press release contains forward-looking statements related to Notify Technology that involve risks and uncertainties, including, but not limited to, statements regarding the improving performance and growth of our wireless product. Those statements are based on 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, our ability to deliver products and manage growth, continue to improve our existing products, release support for additional email platforms and additional devices and develop software compatible with the Apple iPhone within the fiscal year or ever, as well as other risks detailed from time to time in our periodic reports filed with the Securities and Exchange commission. In particular, we cannot predict future NotifyLink revenues with any accuracy and do not know whether NotifyLink revenues will continue to grow at the rates we have recently experienced. 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 our 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
jerry.rice@notifycorp.com
(Financial Tables Follow)
NOTIFY TECHNOLOGY CORPORATION
CONDENSED UNAUDITED STATEMENTS OF OPERATIONS
| | | Three-Month Periods | | Nine-Month Periods | |
| | | Ended June 30, | | Ended June 30, | |
| | | 2008 | | 2007 | | 2008 | | 2007 | |
| | | | | | | | | | |
| Revenue: | | | | | | | | | | | | | |
| Product revenue | | $ | 1,144,800 | | $ | 937,607 | | $ | 3,331,443 | | $ | 2,720,694 | |
| Service revenue | | | -- | | | -- | | | -- | | | 237,991 | |
| Total revenue | | | 1,144,800 | | | 937,607 | | | 3,331,443 | | | 2,958,685 | |
| | | | | | | | | | | | | | |
| Cost of revenue: | | | | | | | | | | | | | |
| Product cost | | | 2,590 | | | 5,371 | | | 11,455 | | | 13,677 | |
| Royalty payments | | | 30,647 | | | 25,543 | | | 105,284 | | | 75,656 | |
| Total cost of revenue | | | 33,237 | | | 30,914 | | | 116,739 | | | 89,333 | |
| Gross profit | | | 1,111,563 | | | 906,693 | | | 3,214,705 | | | 2,869,352 | |
| | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | |
| | | 414,788 | | | 328,035 | | | 1,186,960 | | | 945,062 | |
| Sales and marketing | | | 472,378 | | | 369,618 | | | 1,374,160 | | | 1,247,004 | |
General and administrative | | | 310,079 | | | 302,926 | | | 956,859 | | | 977,692 | |
| Total operating expenses | | | 1,197,245 | | | 1,000,579 | | | 3,517,979 | | | 3,169,758 | |
| | | | | | | | | | | | | | |
| Loss from operations | | | (85,682 | ) | | (93,886 | ) | | (303,274 | ) | | (300,406 | ) |
| | | | | | | | | | | | | | |
| Other interest(expense), net | | | 2,615 | | | 120 | | | 6,479 | | | 2,677 | |
| | | | | | | | | | | | | | |
| Net loss | | $ | (83,067 | ) | $ | (93,766 | ) | $ | (296,795 | ) | $ | (297,729 | ) |
| | | | | | | | | | | | | | |
| | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.02 | ) |
| | | | | | | | | | | | | | |
| Basic weighted average shares outstanding | | | 14,075,662 | | | 13,968,995 | | | 14,046,336 | | | 13,968,995 | |
NOTIFY TECHNOLOGY CORPORATION
Condensed Balance Sheets
| | | June 30, | | Sept. 30, | |
| | | 2008 | | 2007 | |
| | | (Unaudited) | | (1) | |
| Assets: | | | | | | | |
| Current assets: | | | | | | | |
| Cash and cash equivalents | | $ | 971,318 | | $ | 839,775 | |
| Accounts receivable, net | | | 519,641 | | | 588,295 | |
| Other assets | | | 28,732 | | | 51,692 | |
| Total current assets | | | 1,519,691 | | | 1,479,762 | |
| | | | | | | | |
| Non-current assets | | | | | | | |
| Property and equipment, net | | | 107,502 | | | 98,983 | |
| Deposit on property and equipment | | | 56,228 | | | -- | |
| Total non-current assets | | | 148,108 | | | 98,983 | |
| Total assets | | $ | 1,683,421 | | $ | 1,578,745 | |
| | | | | | | | |
| Liabilities and shareholders’ deficit | | | | | | | |
| Current liabilities: | | | | | | | |
| Current portion of capital lease obligation | | $ | 4,373 | | $ | 7,243 | |
| Accounts payable | | | 21,587 | | | 31,915 | |
| Accrued payroll and related liabilities | | | 254,183 | | | 260,216 | |
| Deferred revenue | | | 2,480,425 | | | 2,126,518 | |
| Other accrued liabilities | | | 180,936 | | | 143,189 | |
| Total current liabilities | | | 2,941,504 | | | 2,569,081 | |
| Long-term capital lease obligations | | | 11,823 | | | 15,519 | |
| Total liabilities | | | 2,953,327 | | | 2,584,600 | |
| Shareholders’ deficit: | | | | | | | |
| Common stock | | | 14,076 | | | 13,969 | |
| Additional paid-in capital | | | 23,387,395 | | | 23,354,759 | |
| Accumulated deficit | | | (24,671,377 | ) | | (24,374,583 | ) |
| Total shareholders’ deficit | | | (1,269,906 | ) | | (1,005,855 | ) |
| Total liabilities and shareholders’ deficit | | $ | 1,683,421 | | $ | 1,578,745 | |
(1) The information in this column was derived from our audited financial statements for the year ended September 30, 2007
SOURCE Notify Technology Corporation
-0- 08/13/2008
/CONTACT: Jerry Rice, Chief Financial Officer of Notify Technology Corporation, +1-408-777-7927, jerry.rice@notifycorp.com /
/Web site: http://www.notifycorp.com /
(NTFY NTFY.OB)
