Contacts:
At Notify Technology Corporation:
Jerry Rice, Chief Financial Officer
Phone: 408-777-7927
jerry.rice@notifycorp.com
For Immediate Release
Notify Technology Reports Results for the Fiscal Year Ended September 30, 2008
NotifyLink revenue increases by thirty-two percent over the same quarter in prior year and twenty-five percent overall from the prior year.
San Jose, CA, November 6, 2008 -- Notify Technology Corporation (OTC BB: NTFY) today announced financial results for its fiscal year ended September 30, 2008.
Quarterly revenue increased 32% to $1,309,280 in the three-month period ended September 30, 2008 from $988,711 during the same period in the prior year. The annual improvement was 25% to $4,640,723 for the fiscal year ended September 30, 2008 from $3,709,404 during the fiscal year ended September 30, 2007.
The Company showed a net gain for the fiscal quarter ended September 30, 2008, of $9,114 or a net gain per share of $0.00, compared to a net loss of $128,274, or a net loss per share of $0.01, reported for the fiscal year ended September 30, 2007. The results for the twelve months ended September 30, 2008 was a loss of $287,680, or a net loss per share of $0.02 compared to a loss of $426,004, or a net loss per share of $0.03 for the twelve months ended September 30, 2007.
Although the gain for the 4th fiscal quarter was minimal it was achieved despite a year of unprecedented investment in research and development to maintain and enhance mobile support for twelve email platforms, to develop support for the Apple® iPhone® and iPod® touch, and provide support for the Google Enterprise™ Professional program for organizations using Gmail™ and Google Calendar™.
“Quarter by quarter we continue to invest in our product development program to strengthen our position in the market. As a result, our NotifyLink product revenue has grown for the past twenty consecutive quarters. At the same time, we were recognized for the 4th consecutive year by the Gartner Group Magic Quadrant for Wireless Email,” said Paul DePond President and CEO of Notify Technology Corporation. “The success of our On-Demand version of NotifyLink used by Sun Microsystems and Oracle Corporation provides a strong example to large organizations contemplating outsourcing their mobility needs to Notify.”
About Notify Technology Corporation
Founded in 1994, Notify Technology Corporation, (OTC BB: 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 2-way 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 of our wireless products. 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, our ability to continue to improve our existing products or develop new products or technologies, as well as other risks. 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. Increasing NotifyLink revenues will require, among other things, continued investments in our sales and marketing organization, and we have limited available cash resources to make these investments. 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 the Company’s 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.
(Financial Tables Follow)
NOTIFY TECHNOLOGY CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
| | | Three-Months | | Fiscal Years | |
| | | Ended September 30, | | Ended September 30, |
| | | 2008 | | 2007 | | 2008 | | 2007 | |
| | | (Unaudited) | | (Audited) | |
| | | | | | | | | | |
| Revenue: | | | | | | | | | | | | | |
| Product revenue | | $ | 1,309,280 | | $ | 988,711 | | $ | 4,640,723 | | $ | 3,709,404 | |
| Service revenue | | | -- | | | -- | | | -- | | | 237,991 | |
| Total revenue | | | 1,309,280 | | | 988,711 | | | 4,640,723 | | | 3,947,395 | |
| | | | | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Cost of revenue: | | | | | | | | | | | | | |
| Product cost | | | 2,705 | | | 3,805 | | | 14,160 | | | 17,385 | |
| Royalty payments | | | 34,312 | | | 27,686 | | | 139,595 | | | 103,439 | |
| Total cost of revenue | | | 37,017 | | | 31,491 | | | 153,755 | | | 120,824 | |
| Gross profit | | | 1,272,263 | | | 957,220 | | | 4,486,967 | | | 3,826,571 | |
| | | | | | | | | | | | | | |
| Operating expenses: | | | | | | | | | | | | | |
| Research and development | | | 433,566 | | | 363,366 | | | 1,620,526 | | | 1,308,428 | |
| Sales and marketing | | | 507,392 | | | 365,910 | | | 1,881,552 | | | 1,612,915 | |
| General and administrative | | | 324,443 | | | 338,857 | | | 1,281,302 | | | 1,287,246 | |
| Total operating expenses | | | 1,265,401 | | | 1,068,133 | | | 4,783,380 | | | 4,208,589 | |
| | | | | | | | | | | | | | |
| Gain (Loss) from operations | | | 6,862 | | | (110,913 | ) | | (296,412 | ) | | (382,018 | ) |
| | | | | | | | | | | | | | |
| Other interest (expense), net | | | 2,252 | | | 2,040 | | | 13,542 | | | 1,717 | |
| Option vesting expense | | | -- | | | (14,553 | ) | | (4,810 | ) | | (43,856 | ) |
| Gain (loss) on sales of assets | | | -- | | | (4,848 | ) | | -- | | | (1,848 | ) |
| | | | | | | | | | | | | | |
| Net gain (loss) | | $ | 9,114 | | $ | (128,274 | ) | $ | (287,680 | ) | $ | (426,004 | ) |
| | | | | | | | | | | | | | |
| Basic and diluted net gain (loss) per share | | $ | 0.00 | | $ | (0.01 | ) | $ | (0.02 | ) | $ | (0.03 | ) |
| | | | | | | | | | | | | | |
| Basic and diluted weighted average shares outstanding | | | 13,968,995 | | | 13,968,995 | | | 13,968,995 | | | 13,968,995 | |
NOTIFY TECHNOLOGY CORPORATION | |
Audited Condensed Balance Sheets | |
| | | Sept. 30, | | Sept. 30, | |
| | | 2008 | | 2007 | |
| | | | | | |
Assets: | | | | | | | |
| Current assets: | | | | | | | |
| Cash and cash equivalents | | $ | 1,010,607 | | $ | 839,775 | |
| Accounts receivable, net | | | 509,735 | | | 588,295 | |
| Other assets | | | 39,452 | | | 51,692 | |
| Total current assets | | | 1,559,793 | | | 1,479,762 | |
| Property and equipment, net | | | 173,224 | | | 98,983 | |
| Total assets | | $ | 1,733,018 | | $ | 1,578,745 | |
Liabilities and shareholders’ deficit | | | | | | | |
| Current liabilities: | | | | | | | |
| Current portion of capital lease obligation | | $ | 4,445 | | $ | 7,243 | |
| Accounts payable | | | 40,045 | | | 31,915 | |
| Accrued payroll and related liabilities | | | 349,292 | | | 260,216 | |
| Deferred revenue | | | 2,418,235 | | | 2,126,518 | |
| Other accrued liabilities | | | 171,108 | | | 143,189 | |
| Total current liabilities | | | 2,983,125 | | | 2,569,081 | |
| Long-term capital lease obligations | | | 10,685 | | | 15,519 | |
| Total liabilities | | | 2,993,810 | | | 2,584,600 | |
| Shareholders' deficit: | | | | | | | |
| Common stock | | | 14,076 | | | 13,969 | |
| Additional paid-in capital | | | 23,387,395 | | | 23,354,759 | |
| Accumulated deficit | | | (24,662,263 | ) | | (24,374,583 | ) |
| Total shareholders’ deficit | | | (1,260,792 | ) | | (1,005,855 | ) |
| Total liabilities and shareholders' deficit | | $ | 1,733,018 | | $ | 1,578,745 | |
