2008-08-13 08:15:00
NotifyLink revenue increases over 22 percent from same quarter in prior
fiscal year.
SAN JOSE, Calif., Aug. 13 /EMWNews/ -- Notify Technology
Corporation (OTC Bulletin Board: NTFY) today announced financial results
for its fiscal quarter ended June 30, 2008.
Revenue from the NotifyLink(R) software product line increased 22% to
$1,144,800 for the three month period ended June 30, 2008, from $937,607
during the same period last year. The gross margin remained consistent at
97.1% and 96.7% for the three month periods ending June 30, 2008 and 2007,
respectively. The Company showed a net loss for the fiscal quarter ended
June 30, 2008, of $83,067 or a net loss per share of $(0.01), compared to a
net loss of $93,766, or a net loss per share of $(0.01), reported for the
three month period ended June 30, 2007.
Sales expenses were $472,378 in the three month period ended June 30,
2008 compared to $369,618 in the same period of fiscal 2007. Research and
development spending increased to $414,788 in the three month period ended
June 30, 2008 compared to $328,035 in the same period of fiscal 2007. The
overall increase in research and development expense is a direct result of
adding engineering expenses to support additional email platforms and new
wireless devices. General and administrative expenses were $310,079 in the
three month period ended June 30, 2008 compared to $302,926 in the same
period of fiscal 2007.
"We are excited to announce another quarter of over 20% growth from the
same quarter in the prior year. Our increased R&D spending is driven by our
increased investment in expanding both the email platforms and the devices
we support. Our recent announcement of adding wireless synchronization
support for Google Gmail and Google Calendar services and the imminent
release of our iPhone solution are examples of that commitment," said Paul
DePond, President of Notify Technology. "We are looking forward to reaping
the rewards of our investment in our new development programs throughout
the coming year."
About Notify Technology Corporation
Founded in 1994, Notify Technology Corporation, (OTC Bulletin Board:
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 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.
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, continue to improve
our existing products, release support for additional email platforms and
additional devices and develop software compatible with the Apple iPhone
within the fiscal year or ever, as well as other risks detailed from time
to time in our periodic reports filed with the Securities and Exchange
commission. 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 our 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.
Contacts:
At Notify Technology Corporation:
Jerry Rice, Chief Financial Officer
Phone: 408-777-7927
[email protected]
(Financial Tables Follow)
NOTIFY TECHNOLOGY CORPORATION
CONDENSED UNAUDITED STATEMENTS OF OPERATIONS
Three-Month Periods Nine-Month Periods
Ended June 30, Ended June 30,
2008 2007 2008 2007
Revenue:
Product revenue $1,144,800 $937,607 $3,331,443 $2,720,694
Service revenue -- -- -- 237,991
Total revenue 1,144,800 937,607 3,331,443 2,958,685
Cost of revenue:
Product cost 2,590 5,371 11,455 13,677
Royalty payments 30,647 25,543 105,284 75,656
Total cost of revenue 33,237 30,914 116,739 89,333
Gross profit 1,111,563 906,693 3,214,705 2,869,352
Operating expenses:
Research and
development 414,788 328,035 1,186,960 945,062
Sales and marketing 472,378 369,618 1,374,160 1,247,004
General and
administrative 310,079 302,926 956,859 977,692
Total operating
expenses 1,197,245 1,000,579 3,517,979 3,169,758
Loss from operations (85,682) (93,886) (303,274) (300,406)
Other interest
(expense), net 2,615 120 6,479 2,677
Net loss $(83,067) $(93,766) $(296,795) $(297,729)
Basic net loss
per share $(0.01) $(0.01) $(0.02) $(0.02)
Basic weighted
average shares
outstanding 14,075,662 13,968,995 14,046,336 13,968,995
NOTIFY TECHNOLOGY CORPORATION
Condensed Balance Sheets
June 30, Sept. 30,
2008 2007
(Unaudited) (1)
Assets:
Current assets:
Cash and cash equivalents $971,318 $839,775
Accounts receivable, net 519,641 588,295
Other assets 28,732 51,692
Total current assets 1,519,691 1,479,762
Non-current assets
Property and equipment, net 107,502 98,983
Deposit on property and equipment 56,228 --
Total non-current assets 148,108 98,983
Total assets $ 1,683,421 $1,578,745
Liabilities and shareholders' deficit
Current liabilities:
Current portion of capital lease obligation $4,373 $7,243
Accounts payable 21,587 31,915
Accrued payroll and related liabilities 254,183 260,216
Deferred revenue 2,480,425 2,126,518
Other accrued liabilities 180,936 143,189
Total current liabilities 2,941,504 2,569,081
Long-term capital lease obligations 11,823 15,519
Total liabilities 2,953,327 2,584,600
Shareholders' deficit:
Common stock 14,076 13,969
Additional paid-in capital 23,387,395 23,354,759
Accumulated deficit (24,671,377) (24,374,583)
Total shareholders' deficit (1,269,906) (1,005,855)
Total liabilities and
shareholders' deficit $1,683,421 $1,578,745
(1) The information in this column was derived from our audited
financial statements for the year ended September 30, 2007
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