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 increased 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,
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 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 NotifySync 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
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2009
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(Unaudited)
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Revenue:
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Product sales
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$ 1,878,112
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$ 1,665,621
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Total revenue
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1,878,112
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1,665,621
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Cost of revenue:
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Product cost
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18,612
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---
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Royalty
payments
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1,371
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35,891
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Total cost of revenue
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19,983
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35,891
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Gross profit
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1,858,129
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1,629,730
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Operating expenses:
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Research and
development
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676,429
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467,883
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Sales and marketing
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555,371
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614,023
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General and
administrative
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444,863
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447,481
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Total operating
expenses
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1,676,663
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1,529,387
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Income from
operations
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181,466
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100,343
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Interest income and other,
net
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1,310
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3,985
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Net income before provision for
income taxes
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182,776
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104,328
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Provision for income
taxes
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- -
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- -
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Net income
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$ 182,776
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$ 104,328
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Basic and diluted net income per
share
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$ 0.01
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$ 0.01
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Basic weighted average shares
outstanding
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14,095,210
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14,075,662
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Diluted weighted net income per
share
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$ 0.01
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$ 0.01
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Diluted weighted average shares
outstanding
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15,531,770
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16,031,553
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NOTIFY
TECHNOLOGY CORPORATION
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Condensed
Balance Sheets
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Sept.
30,
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Sept.
30,
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2010
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2009
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Unaudited
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Audited
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Assets:
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Current assets:
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Cash and cash
equivalents
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$ 2,526,654
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$ 1,565,447
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Accounts receivable,
net
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292,040
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810,543
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Other assets
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44,570
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40,540
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Total current assets
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2,863,264
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2,416,530
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Non-current assets
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Property and equipment,
net
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306,380
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247,117
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Lease deposits
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15,602
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15,602
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Total non-current
assets
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321,982
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262,719
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Total assets
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$ 3,185,246
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$ 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
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$
4,142
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Accounts payable
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55,378
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75,340
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Accrued payroll and related
liabilities
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405,203
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454,946
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Deferred revenue
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2,927,067
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2,995,906
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Other accrued
liabilities
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123,066
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140,464
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Total current
liabilities
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3,514,083
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3,670,798
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Long-term
liabilities:
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Long-term Deferred
revenue
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112,696
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137,250
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Long-term capital lease
obligations
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3,174
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6,543
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Total long-term
liabilities
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115,870
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143,793
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Total liabilities
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3,629,953
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3,814,591
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Shareholders'
deficit:
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Preferred stock
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- -
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- -
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Common stock
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14,111
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14,076
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Additional paid-in
capital
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23,516,721
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23,442,160
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Accumulated deficit
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(23,975,539)
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(24,591,578)
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Total shareholders'
deficit
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(444,707)
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(1,135,342)
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Total liabilities and
shareholders' deficit
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$ 3,185,246
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$ 2,679,249
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Contacts:
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At Notify Technology
Corporation:
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Jerry Rice, Chief Financial
Officer
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Phone: 408-777-7927
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jerry.rice@notifycorp.com
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SOURCE Notify Technology Corporation