EXHIBIT 99.1
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DURANTSEMOTUS REPORTS FIRST QUARTER FINANCIAL RESULTS
COMPANY INCREASES REVENUES BY 25%
LOS GATOS, CA.--(PrimeZone Media) -- August 9, 2004, 07:00 AM EST -- Semotus
Solutions (AMEX:DLK), an innovative provider of real-time professional market
data and intelligent wireless communications software, reported its financial
results for the three months ended June 30, 2004. The Company's focus on
marketing and sales was reflected in a 25% increase in revenues to $440,574 in
the quarter ended June 30, 2004 versus $353,662, in the quarter ending June 30th
2003. The revenue increase is the result of a recovering technology economy with
increased IT purchases and the result of the Company having increased its sales
force. Semotus also reduced its cash burn from operations by 76%. Gross profit
margin increased to 84% for the three months ended June 30, 2004.
Semotus reported net income of $314,959 or $0.01 per share for the three months
ended June 30, 2004 versus a net loss of $(672,704) or $(0.03) per share for the
three months ended June 30, 2003. This operating improvement was accomplished
through increased revenues and a continuing reduction in operating costs. The
net income was also affected by a non-cash reversal of stock compensation
expense as explained in the following paragraph.
The net income of $314,959 in the quarter ended June 30, 2004 was positively
affected by a non-cash reversal of stock compensation expense of $555,191 due to
the application of the variable method of accounting for certain stock options
that were re-priced. This is further discussed in the Company's 10-QSB, in Note
4 to the Consolidated Financial Statements, "Stock Based Compensation," in
accordance with generally accepted accounting principles. Eliminating this
non-cash reversal, Semotus had a loss from operations of $240,000.
Semotus' operating performance continued to improve, as evidenced by a continued
increase in its gross profit margin to 84% from 77% for the three months ended
June 30, 2004 versus 2003, respectively. Also furthering the Company's goal of
cash breakeven, Semotus reduced its overall use of cash by 76% to $53,214 from
$224,608 in the period ended June 30, 2004 versus 2003. The reduction is the
result of the improvement in cash from operations as the Company has continued
to grow its revenues while at the same time reducing its operating expenses. The
Company believes its cash position of $1,663,838 provides sufficient reserves to
execute its current business plan.
"The improvements in our revenues reflect the recent investments we have been
making in marketing and sales." stated Anthony LaPine, Semotus CEO. "I am
equally pleased with the almost breakeven cash performance we achieved."
"The financial results for the Company's first quarter of fiscal year 2005 adds
credibility to my belief that the market has undervalued the Company." stated
Anthony LaPine, "Semotus has no debt, growing revenues, 84% gross profit
margins, a Fortune 1000 customer base, excellent products, cash reserves, low
burn rate, no litigation, a clean equity structure (no toxic preferred or
convertibles), and an experienced and talented management team."
FINANCIAL WEBCAST
Semotus will conduct a webcast to allow securities analysts and shareholders the
opportunity to hear management discuss the company's quarterly results. The
webcast will begin at 4:00 PM ET on Wednesday, August 11th. 2004. The live
broadcast of the webcast can be accessed via the Investor Relations page of
Semotus Solution's website at www.semotus.com or through www.vcall.com. Please
email questions you wish addressed to the company at ir@semotus.com. The event
will be archived and available for replay for 90 days.
ABOUT SEMOTUS SOLUTIONS
Founded in 1993, Semotus Solutions (AMEX:DLK) is a premier provider of software
for the mobile enterprise connecting employees to critical business systems,
information and processes. Semotus has a Fortune 1000 installed customer base
and more than 600 corporate clients including Lockheed Martin, Blue Cross Blue
Shield, Coca-Cola, Hewlett Packard, Nextel Communications, JP Morgan-Chase, and
The United Nations. Semotus Solutions' software provides mobility, convenience,
efficiency and profitability in the areas of workforce automation, finance,
healthcare, and m-commerce. www.semotus.com
SEMOTUS SOLUTIONS
MEDIA CONTACT
DON MEYER, 408-358-7003
Marketing Manager
dmeyer@semotus.com
SEMOTUS SOLUTIONS
INVESTOR RELATIONS CONTACT
TALI DURANT, 408-358-7100
Corporate Counsel
tdurant@semotus.com
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This press release contains forward-looking statements, which are made pursuant
to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of
1995. Words such as "intends", "believes" and similar expressions reflecting
something other than historical fact are intended to identify forward-looking
statements, but are not the exclusive means of identifying such statements.
These forward-looking statements involve a number of risks and uncertainties,
including the timely development and market acceptance of products and
technologies, the ability to secure additional sources of finance, the ability
to reduce operating expenses, and other factors described in the Company's
filings with the Securities and Exchange Commission. The actual results that the
Company achieves may differ materially from any forward-looking statement due to
such risks and uncertainties. The Company undertakes no obligation to revise or
update any forward-looking statements in order to reflect events or
circumstances that may arise after the date of this release.