Notify Technology Reports Results for the Fiscal Quarter Ended December 31, 2012
SAN JOSE, Calif., Feb. 22, 2013 /PRNewswire/ — Notify Technology Corporation (Pink Sheets: NTFY.PK) today announced financial results for its fiscal quarter ended December 31, 2012.
Total revenue in the three-month period ended December 31, 2012 decreased 21% to $1,275,975 from $1,606,851 during the same period in the prior year. The net loss for the three-month period ended December 31, 2012 was $202,955 or $3.16 per diluted share which was an improvement from a net loss of $410,761, or $5.82 per diluted share, reported for the same period in the prior year. The decrease in revenue for the fiscal quarter reflects a combination of a reduction in sales of the NotifyLink and NotifySync products and the slower than anticipated growth of the NotifyMDM product line.
“Fiscal 2013 will be a transition year as we expect a continued reduction in demand for our NotifyLink products while ramping up sales of our new NotifyMDM product.” said David Hanabusa, President and Chief Executive Officer of the company. “We are continually improving our MDM product and have invested heavily in development assets to do so. We have also streamlined our operation where we can without sacrificing product design.”
Sales and Marketing expenses were $489,025 in the three-month period ended December 31, 2012 compared to $741,899 in the three-month period ended December 31, 2011. The significant decrease in spending was primarily due to reductions in compensation expense.
Research and Development expenses were $689,450 in the three-month period ended December 31, 2012 compared to $855,594 in the three-month period ended December 31, 2011. The decrease was due to reductions in compensation expense. We continue to invest heavily in the development of the NotifyMDM product line while still maintaining the capability to improve and support the NotifySync and NotifyLink products.
General and Administrative expenses decreased to $289,382 in the three-month period ended December 31, 2012 compared to $409,159 for the three-month period ended December 31, 2011. The decrease was primarily due to incurring minimal SEC filing costs and reducing executive compensation.
About Notify Technology Corporation
Founded in 1994, Notify Technology Corporation is an independent software vendor (ISV) who has specialized in wireless mobility solutions and services for the past 11 years. Notify’s products including NotifyLink, NotifySync and NotifyMDM support all major smart phone and tablet platforms independent of wireless carrier or network. Notify sells its mobility products directly and through authorized resellers internationally. Notify is an official Apple iOS Enterprise Development Partner, Android Development Partner, BlackBerry Development Partner, Windows Mobile and Windows Phone Development Partner, and Symbian Alliance Member. The Company is headquartered in San Jose, California with product development and technical support located in Canfield, Ohio. For more information, visit http://www.notifycorp.com or contact 408-777-7930.
(Financial Tables Follow)
NOTIFY TECHNOLOGY CORPORATION
CONDENSED STATEMENTS OF OPERATIONS
Three-Month Periods
Ended December 31,
2012 2011
---- ----
(unaudited) (audited)
Revenue:
Product revenue $1,275,975 $1,606,851
Total revenue 1,275,975 1,606,851
--------- ---------
Cost of revenue:
Product cost 4,239 15,287
Royalty payments 8,768 765
----- ---
Total cost of revenue 13,007 16,052
------ ------
Gross profit 1,262,968 1,590,799
--------- ---------
Operating expenses:
Research and
development 689,450 855,594
Sales and
marketing 489,025 741,899
General and
administrative 289,382 409,159
-----------
Total operating expenses 1,467,857 2,006,652
--------- ---------
Income from operations (204,889) (415,853)
Interest income and other, net 1,934 5,092
Net income (loss) before provision for
income taxes (202,955) (410,761)
Provision for income taxes -- --
--- ---
Net income (loss) $(202,955) $(410,761)
--------- ---------
Basic net income (loss) per share $(3.16) $(5.82)
====== ======
Basic weighted average shares outstanding 70,541 70,541
====== ======
Diluted weighted net income (loss) per
share $(3.16) $(5.82)
====== ======
Diluted weighted average shares outstanding 70,541 70,541
====== ======
NOTIFY TECHNOLOGY CORPORATION
Condensed Balance Sheets
Dec. 31, Dec. 31,
2012 2011
---- ----
(unaudited) (audited)
Assets:
Current assets:
Cash and cash
equivalents $1,358,963 $1,430,748
Accounts
receivable,
net 129,287 876,071
Other assets 34,478 43,527
Total current assets 1,522,728 2,350,346
Non-current
assets
Property and
equipment,
net 160,818 286,906
Lease
deposits 15,602 15,602
Total non-
current assets 176,420 302,508
Total assets $1,699,148 $2,652,854
Liabilities and shareholders' deficit
Current liabilities:
Current
portion of
capital
lease
obligation $2,872 $2,706
Accounts
payable 23,786 40,725
Accrued
payroll and
related
liabilities 427,827, 519,318
Deferred
revenue 2,951,432 3,112,937
Other accrued
liabilities 130,423 106,456
Total current liabilities 3,536,340 3,782,142
Long-term liabilities:
Long-term
Deferred
revenue 57,449 82,003
Long-term
capital
lease
obligations 8,555 11,428
Total long-term liabilities 66,004 93,431
------ ------
Total liabilities 3,602,344 3,875,573
--------- ---------
Shareholders' deficit:
Preferred
stock - - - -
Common stock 71 71
Additional
paid-in
capital 23,706,639 23,651,279
Accumulated
deficit (25,609,906) (24,874,069)
Total shareholders' deficit (1,903,196) (1,222,719)
----------
Total
liabilities and
shareholders'
deficit $1,699,148 $2,652,854
Contacts:
At Notify Technology Corporation:
Jerry Rice, Chief Financial Officer
Phone: 408-777-7927
jerry.rice@notifycorp.com
SOURCE Notify Technology Corporation
