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 First Fiscal Quarter Ended December 31, 2008
NotifyLink revenue increases by 25%t over the same quarter in prior year.
San Jose, CA, February 12, 2009 -- Notify Technology Corporation (OTC BB: NTFY) today announced financial results for its first fiscal quarter ended December 31, 2008.
Revenue increased 25% to $1,349,261 in the three-month period ended December 31, 2008 from $1,074,854 during the same period in the prior year. The increase in revenue was attributed to growth in both domestic and international sales of the NotifyLink product line. The Company showed a net loss for the fiscal quarter ended December 31, 2008, of $60,650 or a net loss per share of $0.00, compared to a net loss of $92,701, or a net loss per share of $0.01, reported for the fiscal quarter ended December 31, 2007.
Sales and marketing expense was $562,249 in the three month period ended December 31, 2008 compared to $414,206 in the three month period ended December 31, 2007. The increase was primarily in salary and commission expense to support sales growth. The Company has continued to devote additional resources to international sales. Management believes that this increased focus on international activity over the last twelve months has contributed to the increase in overall revenues.
The Company expended $479,915 for research and development in the three-month period ended December 31, 2008 compared to $414,206 in the three-month period ended December 31, 2007. Virtually all the increase is due to salaries as the Company has invested heavily in expanding the NotifyLink product line to support new devices like the Apple iPhone and new email platforms like Google Premier Apps and readying a new product line for launch in early 2009.
“We are all very excited about our first quarter revenue results given the worldwide economic uncertainty that surrounds us. We were very pleased that both our domestic and international sales contributed to the increase in our quarterly revenue stream of 25% over the same quarter last year”, said Paul DePond President and CEO of Notify Technology Corporation. “We believe our wireless products provide real value to organizations and businesses all over the world and we hope to continue to grow even in these tough economic times.”
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.
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Forward-Looking Statements: This press release contains forward-looking statements related to Notify Technology Corporation that involve risks and uncertainties, including, but not limited to, statements regarding increases in international sales, the launch of new wireless devices and product lines and 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, and our ability to maintain revenue growth 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, if at all. 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-Month Periods | |
| | | Ended December 31, | |
| | | 2008 | | | 2007 | |
| | | (Unaudited) | |
| | | | | | | |
| Revenue: | | | | | | |
| Product sales | | $ | 1,349,261 | | | $ | 1,074,854 | |
| Total revenue | | | 1,349,261 | | | | 1,074,854 | |
| | | | | | | | | |
| | | | | | | | | |
| Cost of revenue: | | | | | | | | |
| Product cost | | | 5,260 | | | | 5,080 | |
| Royalty payments | | | 34,188 | | | | 29,070 | |
| Total cost of revenue | | | 39,448 | | | | 34,150 | |
| Gross profit | | | 1,309,813 | | | | 1,040,704 | |
| | | | | | | | | |
| Operating expenses: | | | | | | | | |
| Research and development | | | 479,915 | | | | 395,683 | |
| Sales and marketing | | | 562,249 | | | | 414,206 | |
| General and administrative | | | 329,919 | | | | 323,356 | |
| Total operating expenses | | | 1,372,083 | | | | 1,133,245 | |
| | | | | | | | | |
| Loss from operations | | | (62,270 | ) | | | (92,541 | ) |
| | | | | | | | | |
| Interest income (expense) and other, net | | | 1,620 | | | | 4,650 | |
| SFAS 123(R) expense | | | -- | | | | (4,810 | ) |
| Net loss | | $ | (60,650 | ) | | $ | (92,701 | ) |
| | | | | | | | | |
| Basic and diluted net loss per share | | $ | (0.00 | ) | | $ | (0.01 | ) |
| | | | | | | | | |
| Weighted average shares outstanding | | | 14,075,662 | | | | 14,017,328 | |
| | | | | | | | | |
| NOTIFY TECHNOLOGY CORPORATION | |
| Condensed Balance Sheets | |
| | | Dec. 31, | | | Sept. 30, | |
| | | 2008 | | | 2008 | |
| | | Unaudited | | | Audited | |
| Assets: | | | | | | |
| Current assets: | | | | | | |
| Cash and cash equivalents | | $ | 1,052,177 | | | $ | 1,010,607 | |
| Accounts receivable, net | | | 826,975 | | | | 509,735 | |
| Other assets | | | 36,942 | | | | 39,452 | |
| Total current assets | | | 1,916,094 | | | | 1,559,794 | |
| Property and equipment, net | | | 202,920 | | | | 173,224 | |
| Total assets | | $ | 2,119,014 | | | $ | 1,733,018 | |
| Liabilities and shareholders’ deficit | | | | | | | | |
| Current liabilities: | | | | | | | | |
| Current portion of capital lease obligation | | $ | 4,011 | | | $ | 4,445 | |
| Accounts payable | | | 64,890 | | | | 40,045 | |
| Accrued payroll and related liabilities | | | 324,411 | | | | 349,292 | |
| Deferred revenue | | | 2,866,631 | | | | 2,418,235 | |
| Other accrued liabilities | | | 170,479 | | | | 171,108 | |
| Total current liabilities | | | 3,430,422 | | | | 2,983,125 | |
| Long-term capital lease obligations | | | 10,034 | | | | 10,685 | |
| Total liabilities | | | 3,440,456 | | | | 2,993,810 | |
| Shareholders' deficit: | | | | | | | | |
| Common stock | | | 14,076 | | | | 14,076 | |
| Additional paid-in capital | | | 23,387,395 | | | | 23,387,395 | |
| Accumulated deficit | | | (24,722,913 | ) | | | (24,662,263 | ) |
| Total shareholders’ deficit | | | (1,321,442 | ) | | | (1,260,792 | ) |
| Total liabilities and shareholders' deficit | | $ | 2,119,014 | | | $ | 1,733,018 | |
