SAN JOSE, Calif., Nov. 2, 2010 /PRNewswire-FirstCall/ -- Notify Technology Corporation (OTC Bulletin Board: NTFY) today announced preliminary financial results for its fourth fiscal quarter ended September 30, 2010.
Total fiscal fourth quarter revenue increased 13% to $1,878,112 in the three-month period ended September 30, 2010 from $1,665,621 during the same period in the prior year. Net income for the three month period ended September 30, 2010 was $182,776 or $0.01 per diluted share. The company's financial performance is an improvement from net income of $104,328 or $0.01 per diluted share, reported for the same period in the prior year. The increase in net income for the fiscal quarter reflects our continued success in growing and renewing customer accounts.
The company also experienced a 61% increase in cash and cash equivalents at September 30, 2010 as compared to cash and cash equivalents at September 30, 2009.
"It gives me great pleasure to report the preliminary financial results of the final quarter of fiscal 2010. Not only have we achieved our sixth consecutive profitable quarter we also recorded our second profitable year," said Paul DePond, President and Chief Executive Officer of the company. "I expect the fully audited results to be released in December 2010."
Sales and Marketing expenses were $555,371 in the three-month period ended September 30, 2010 compared to $614,023 in the three-month period ended September 30, 2009. The decrease was primarily the result of a decrease in salary and commission expenses.
Research and Development expenses were $676,429 in the three-month period ended September 30, 2010 compared to $467,883 in the three-month period ended September 30, 2009. The increase was due to the inc reased salaries as we expanded our design and testing staff to meet the demands of a rapidly expanding smart phone market. Our development efforts were devoted to increasing the feature set of our software products, porting our solution to new devices and creating new products.
General and Administrative expenses were flat at $444,863 in the three-month period ended September 30, 2010 compared to $447,481 for the three-month period ended September 30, 2009.
About Notify Technology Corporation
Founded in 1994, Notify Technology Corporation, (OTC BB: NTFY.OB) 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, Californi a. 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 Corporation that involve risks and uncertainties, including, but not limited to, statements regarding the expected timing of the release of the Company's audited results. Those statements are based on unaudited 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, Notify's ability to deliver products and manage growth, its ability to continue to improve its existing products or develop new products or technologies, and its ability to maintain revenue growth as well as other risks. In particular, management cannot predict future NotifyLink and NotifySync revenues with any accuracy and does not know whether NotifyLink and No tifySync revenues will continue to grow at the rates recently experienced, if at all. Increasing NotifyLink and NotifySync revenues will require, among other things, continued investments in the Company's sales and marketing organization and Notify has 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) | |
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NOTIFY TECHNOLOGY CORPORATION CONDENSED STATEMENTS OF INCOME | |
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| Three-Month Periods |
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| Ended September 30, |
| |
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| 2010 |
| 2009 |
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| (Unaudited) |
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Revenue: |
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|
|
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Product sales | $ 1,878,112 |
| $ 1,665,621 |
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Total revenue | 1,878,112 |
| 1,665,621 |
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Cost of revenue: |
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Product cost | 18,612 |
| --- |
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Royalty payments | 1,371 |
| 35,891 |
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Total cost of revenue | 19,983 |
| 35,891 |
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Gross profit | 1,858,129 |
| 1,629,730 |
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Operating expenses: |
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|
|
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| Research and development | 676,429 |
| 467,883 |
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| Sales and marketing | 555,371 |
| 614,023 |
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| General and administrative | 444,863 |
| 447,481 |
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Total operating expenses | 1,676,663 |
| 1,529,387 |
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Income from operations | 181,466 |
| 100,343 |
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Interest income and other, net | 1,310 |
| 3,985 |
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Net income before provision for income taxes | 182,776 |
| 104,328 |
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Provision for income taxes | - - |
| - - |
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Net income | $ 182,776 |
| $ 104,328 |
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Basic and diluted net income per share | $ 0.01 |
| $ 0.01 |
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Basic weighted average shares outstanding | 14,095,210 |
| 14,075,662 |
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Diluted weighted net income per share | $ 0.01 |
| $ 0.01 |
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Diluted weighted average shares outstanding | 15,531,770 |
| 16,031,553 |
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NOTIFY TECHNOLOGY CORPORATION |
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Condensed Balance Sheets
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| Sept. 30, |
| Sept. 30, |
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|
|
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| 2010 |
| 2009 |
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|
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| Unaudited |
| Audited |
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Assets: |
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Current assets: |
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|
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| Cash and cash equivalents |
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| $ 2,526,654 |
| $ 1,565,447 |
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| Accounts receivable, net |
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| 292,040 |
| 810,543 |
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| Other assets |
|
| 44,570 |
| 40,540 |
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Total current assets |
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| 2,863,264 |
| 2,416,530 |
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| Non-current assets |
|
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|
|
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| Property and equipment, net |
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| 306,380 |
| 247,117 |
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| Lease deposits |
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| 15,602 |
| 15,602 |
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| Total non-current assets |
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| 321,982 |
| 262,719 |
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| Total assets |
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| $ 3,185,246 |
| $ 2,679,249 |
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Liabilities and shareholders' deficit |
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Current liabilities: |
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| Current portion of capital lease obligation |
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| $ 3,369 |
| $ 4,142 |
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| Accounts payable |
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| 55,378 |
| 75,340 |
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| Accrued payroll and related liabilities |
|
| 405,203 |
| 454,946 |
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| Deferred revenue |
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| 2,927,067 |
| 2,995,906 |
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| Other accrued liabilities |
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| 123,066 |
| 140,464 |
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Total current liabilities |
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| 3,514,083 |
| 3,670,798 |
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Long-term liabilities: |
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|
|
|
|
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| Long-term Deferred revenue |
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| 112,696 |
| 137,250 |
| |
| Long-term capital lease obligations |
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| 3,174 |
| 6,543 |
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Total long-term liabilities |
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| 115,870 |
| 143,793 |
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Total liabilities |
|
| 3,629,953 |
| 3,814,591 |
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Shareholders' deficit: |
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|
|
|
|
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| Preferred stock |
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| - - |
| - - |
| |
| Common stock |
|
| 14,111 |
| 14,076 |
| |
| Additional paid-in capital |
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| 23,516,721 |
| 23,442,160 |
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| Accumulated deficit |
|
| (23,975,539) |
| (24,591,578) |
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Total shareholders' deficit |
|
| (444,707) |
| (1,135,342) |
| |
| Total liabilities and shareholders' deficit |
| $ 3,185,246 |
| $ 2,679,249 |
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Contacts: | |
At Notify Technology Corporation: | |
Jerry Rice, Chief Financial Officer | |
Phone: 408-777-7927 | |
jerry.rice@notifycorp.com | |
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CONTACT: Jerry Rice, Chief Financial Officer of Notify Technology Corporation, +1-408-777-7927, jerry.rice@notifycorp.com
