SAN JOSE, Calif., July 29, 2011 /PRNewswire/ -- Notify
Technology Corporation today announced financial results for
its third fiscal quarter ended June 30,
2011.
Total fiscal third quarter revenue decreased to $1,643,820 in the three-month period ended
June 30, 2011 from $1,837,377 during the same period in the prior
year. The net loss for the three month period ended
June 30, 2011 was $195,715 or $(0.01)
per diluted share. The company's financial performance was down
from a net income of $212,506 or
$0.01 per diluted share, reported for
the same period in the prior year. The decrease in net income for
the fiscal quarter reflects the combined impact of a decline in new
customer sales of the NotifyLink product line and the expense of
our investment in developing our new mobile device management
product line, NotifyMDM.
"Our strategic product emphasis continues to be focused on
NotifyMDM our new mobile device management product," said
Paul DePond, President and Chief
Executive Officer of the company. "We have increased our investment
in product development by 44% as compared to last year's
expenditure to validate our commitment to achieving a leadership
position in the mobile device management market over short term
profitability."
Sales and Marketing expenses were $642,613 in the three-month period ended
June 30, 2011 compared to
$544,314 in the three-month period
ended June 30, 2010. The
increase was the result of the addition to our outside sales force
and by marketing expenditures to support the new product
introduction of NotifyMDM.
Research and Development expenses were $798,786 in the three-month period ended
June 30, 2011 compared to
$605,502 in the three-month period
ended June 30, 2010. The
increase was due to an increased investment in our design and
testing staff to accelerate the completion of NotifyMDM and meet
the demands of a rapidly expanding smart phone and tablet market.
General and Administrative expenses decreased to $401,948 in the three-month period ended
June 30, 2011 compared to
$462,153 for the three-month period
ended June 30, 2010. The
decrease was in compensation and legal expense.
About Notify Technology Corporation
Founded in 1994, Notify Technology Corporation is an independent
software vendor (ISV) who has specialized in wireless mobility
solutions and services for the past 10 years. Notify's products
including NotifyLink, NotifySync and NotifyMDM support all major
smart phone and tablet platforms independent of wireless carrier or
network. Notify sells its mobility products directly and
through authorized resellers internationally. Notify is an official
Apple iPhone Enterprise Development Partner, Android Development
Partner, BlackBerry Development Partner, Windows Mobile and Windows
Phone Development Partner, Symbian Alliance Member, and HP/Palm
Select Partner. The Company is headquartered in San Jose, California with product development
and technical support located in Canfield, Ohio. For more information, visit
http://www.notifycorp.com or contact 408-777-7930.
Contacts:
At Notify Technology Corporation:
Jerry Rice, Chief Financial
Officer
Phone: 408-777-7927
jerry.rice@notifycorp.com
(Financial
Tables Follow)
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NOTIFY
TECHNOLOGY CORPORATION
CONDENSED
STATEMENTS OF INCOME
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Three-Month
Period
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Nine-Month
Period
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Ended June
30,
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Ended June
30,
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2011
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2010
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2011
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2010
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Revenue:
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Product
revenue
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$ 1,643,820
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$ 1,837,377
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$ 5,197,071
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$ 5,367,871
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Total revenue
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1,643,820
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1,837,377
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5,197,071
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5,367,871
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Cost of revenue:
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Product cost
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3,549
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12,348
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20,240
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27,131
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Royalty
payments
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978
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1,707
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4,096
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5,103
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Total cost of revenue
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4,527
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14,055
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24,336
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32,234
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Gross profit
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1,639,293
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1,823,322
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5,172,735
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5,335,637
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Operating expenses:
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Research and
development
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798,786
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605,502
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2,283,120
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1,579,872
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Sales and marketing
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642,613
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544,314
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1,902,787
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1,955,598
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General and
administrative
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401,948
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462,153
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1,266,361
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1,369,737
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Total operating
expenses
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1,843,347
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1,611,969
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5,452,268
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4,905,207
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Income/(loss) from
operations
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(204,054)
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211,353
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(279,533)
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430,430
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Other interest (expense),
net
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8,339
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1,153
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12,194
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2,832
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Net income (loss)
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$ (195,715)
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$ 212,506
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$ (267,339)
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$ 433,262
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Basic net income (loss) per
share
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$ (0.01)
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$ 0.02
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$ (0.02)
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$ 0.03
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Basic weighted average shares
outstanding
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14,111,217
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14,075,662
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14,111,217
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14,076,629
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Diluted net income (loss) per
share
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$ (0.01)
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$ 0.01
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$ (0.02)
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$ 0.03
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Diluted weighted average shares
outstanding
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14,111,217
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14,849,281
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14,111,217
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15,949,153
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NOTIFY
TECHNOLOGY CORPORATION
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Condensed
Balance Sheets
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June
30,
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Sept.
30,
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2011
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2010
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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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$ 2,288,301
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$ 2,526,654
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Accounts receivable,
net
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385,240
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292,040
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Other assets
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138,019
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44,570
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Total current assets
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2,811,560
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2,863,264
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Non-current assets
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Property and equipment,
net
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291,835
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306,380
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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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307,437
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321,982
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Total assets
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$ 3,118,997
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$ 3,185,246
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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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$
3,303
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$
3,369
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Accounts payable
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42,567
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55,378
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Accrued payroll and related
liabilities
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477,306
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405,203
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Deferred revenue
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3,007,666
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2,927,067
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Other accrued
liabilities
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137,136
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123,066
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Total current
liabilities
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3,667,978
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3,514,083
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Long-term
liabilities:
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Long-term Deferred
revenue
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94,281
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112,696
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Long-term capital lease
obligations
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877
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3,174
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Total long-term
liabilities
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95,158
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115,870
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Total liabilities
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3,763,136
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3,629,953
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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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14,111
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Additional paid-in
capital
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23,584,629
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23,516,722
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Accumulated deficit
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(24,242,879)
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(23,975,540)
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Total shareholders'
deficit
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(644,139)
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(444,707)
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Total liabilities and
shareholders' deficit
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$ 3,118,997
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$ 3,185,246
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SOURCE Notify Technology Corporation