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 Quarter Ended December 31, 2007
Wireless revenue increases over 20 percent from same quarter
in prior fiscal year.
San Jose, CA, February 14, 2007 -- Notify Technology Corporation (OTC: NTFY)
today announced financial results for its fiscal quarter ended December 31,
2007.
The NotifyLink software product line increased 21% to $1,074,854 from $882,515
during the same period last year. The gross margin remained consistent at 96.7%
and 97.4% for the three month periods ending December 31, 2007 and 2006,
respectively. The Company showed a net loss for the fiscal quarter ended
December 31, 2007, of $92,701 or a net loss per share of $(0.01), compared to a
net loss of $61,027, or a net loss per share of $(0.00), reported for the three
month period ended December 31, 2006.
Sales expenses were down at $414,206 in the three month period ended December
31, 2007 compared to $447,323 in the same period of fiscal 2007. Research and
Development spending increased to $395,683 in the three month period ended
December 31, 2007 compared to $304,068 in the same period of fiscal 2007. The
overall increase in engineering expense is a direct result in supporting
additional email platforms and new wireless devices. Administrative expenses
were $323,356 in the three month period ended December 31, 2007 compared to
$304,319 in the same period of fiscal 2007.
"Our wireless product revenue continues to grow steadily year to year while we
continue to maintain control over our expenses. Notify has established itself as
providing a robust wireless solution to support a variety of email platforms and
wireless handheld devices. We continue to increase our investment in research
and development as we increase the number of email platforms and wireless
devices we support," said Paul DePond, President of Notify Technology. "We are
committed to enhancing our wireless products in order to maintain our market
position and continue our revenue growth throughout the coming fiscal year."
About Notify Technology Corporation
Founded in 1994, Notify Technology Corporation (OTC: 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.
-more-
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, 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. 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 UNAUDITED STATEMENTS OF OPERATIONS
Three-Month Periods
Ended December 31,
2007 2006
-------------- --------------
(Unaudited)
Revenue:
Product sales $ 1,074,854 $ 882,515
Service revenue -- 148,931
-------------- --------------
Total revenue 1,074,854 1, 031,446
-------------- --------------
Cost of revenue:
Product cost 5,080 2,350
Royalty payments 29,070 23,950
-------------- --------------
Total cost of revenue 34,150 26,300
-------------- --------------
Gross profit 1,040,704 1, 005,146
-------------- --------------
Operating expenses:
Research and development 395,683 304,068
Sales and marketing 414,206 447,323
General and administrative 323,356 304,319
-------------- --------------
Total operating expenses 1,133,245 1,055,710
Loss from operations (92,541) (50,564)
Interest income (expense) and other, net 4,650 (256)
SFAS 123(R) expense (4,810) (10,207)
-------------- --------------
Net loss $ (92,701) $ (61,027)
============== ==============
Basic and diluted net loss per share $ (0.01) $ (0.00)
============== ==============
Weighted average shares outstanding 14,017,328 13,968,995
============== ==============
NOTIFY TECHNOLOGY CORPORATION
CONDENSED BALANCE SHEETS
Dec. 31, Dec. 31,
2007 2006
------------ ------------
(Unaudited) (Unaudited)
Assets:
Current assets:
Cash and cash equivalents $ 855,771 $ 684,584
Accounts receivable, net 637,441 697,324
Other assets 69,264 52,547
------------ ------------
Total current assets 1,562,476 1,434,455
Non-current assets
Property and equipment, net 99,335 96,999
Deposit on property and equipment 31,850 --
------------ ------------
Total non-current assets 131,185 96,999
------------ ------------
Total assets $ 1,693,661 $ 1,531,454
============ ============
Liabilities and shareholders' deficit
Current liabilities:
Current portion of capital lease
obligation $ 3,846 $ 18,540
Accounts payable 45,957 66,651
Accrued payroll and related
liabilities 220,478 217,493
Deferred revenue 2,312,549 1,790,481
Other accrued liabilities 162,209 108,372
------------ ------------
Total current liabilities 2,745,039 2,201,537
Long-term capital lease obligations 14,434 4,444
------------ ------------
Total liabilities 2,759,473 2,205,981
------------ ------------
Shareholders' deficit:
Common stock 14,075 13,969
Additional paid-in capital 23,387,395 23,321,110
Accumulated deficit (24,467,282) (24,009,606)
------------ ------------
Total shareholders' deficit (1,065,812) (674,527)
------------ ------------
Total liabilities and shareholders'
deficit $ 1,693,661 $ 1,531,454
============ ============