Attached files
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| 8-K - NOTIFY TECHNOLOGY CORP | v206216_8k.htm |
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 Year Ended September 30,
2010
Revenue
increases by 20% over annual revenue in the prior year.
San Jose, CA, December 21,
2010 -- Notify
Technology Corporation (OTC BB: NTFY.OB) today announced financial
results for its fiscal year ended September 30, 2010.
Total
fiscal twelve-month revenue increased 20% to $7,245,983 in the twelve-month
period ended September 30, 2010 from $6,032,257 during the same period in the
prior year. Net income for the twelve month period ended September
30, 2010 was $616,038 or $0.04 per diluted share. The company’s financial
performance is an improvement from net income of $70,685 or $0.01 per diluted
share, reported for the same period in the prior year. The increase in net
income for the fiscal year reflects the Company’s 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 financial results of fiscal 2010. We
have now reported our second consecutive profitable year,” said Paul DePond,
President and Chief Executive Officer of the company. “It is an achievement we
are very satisfied with.”
Sales and
Marketing expenses were $2,510,970 in the twelve-month period ended September
30, 2010 compared to $2,322,315 in the twelve-month period ended September 30,
2009. The increase was primarily the result of an increase in salary
and commission expenses.
Research
and Development expenses were $2,256,301 in the twelve-month period ended
September 30, 2010 compared to $1,917,614 in the twelve-month period ended
September 30, 2009. The increase was due to the increased salary
expense 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 increased to $1,814,600 in the twelve-month period
ended September 30, 2010 compared to $1,574,958 for the twelve-month period
ended September 30, 2009. The increase was primarily due to
compensation expense related to personnel growth and bonuses for improved
financial performance.
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)
NOTIFY
TECHNOLOGY CORPORATION
CONDENSED
STATEMENTS OF OPERATIONS
|
Three-Month
Periods
Ended September
30,
|
Twelve-Month
Periods
Ended September
30,
|
|||||||||||||||
| 2010 | 2009 | 2010 | 2009 | |||||||||||||
|
Revenue:
|
||||||||||||||||
|
Product
revenue
|
$ | 1,878,112 | $ | 1,665,621 | $ | 7,245,983 | $ | 6,032,257 | ||||||||
|
Total
revenue
|
1,878,112 | 1,665,621 | 7,245,983 | 6,032,257 | ||||||||||||
|
Cost of
revenue:
|
||||||||||||||||
|
Product
cost
|
18,612 | -- | 45,743 | 8,620 | ||||||||||||
|
Royalty
payments
|
1,371 | 35,891 | 6,474 | 144,963 | ||||||||||||
|
Total cost of
revenue
|
19,983 | 35,891 | 52,217 | 153,583 | ||||||||||||
|
Gross
profit
|
1,858,129 | 1,629,730 | 7,193,766 | 5,878,674 | ||||||||||||
|
Operating
expenses:
|
||||||||||||||||
|
Research and
development
|
676,429 | 467,883 | 2,256,301 | 1,917,614 | ||||||||||||
|
Sales and
marketing
|
555,371 | 614,023 | 2,510,970 | 2,322,315 | ||||||||||||
|
General and
administrative
|
444,863 | 447,481 | 1,814,600 | 1,574,958 | ||||||||||||
|
Total operating
expenses
|
1,676,663 | 1,529,387 | 6,581,871 | 5,814,887 | ||||||||||||
|
Income from
operations
|
181,466 | 100,343 | 611,895 | 63,787 | ||||||||||||
|
Interest income and other,
net
|
1,310 | 3,985 | 4,143 | 6,898 | ||||||||||||
|
Net income before provision for
income taxes
|
182,776 | 104,328 | 4,143 | 70,685 | ||||||||||||
|
Provision for income
taxes
|
-- | -- | -- | -- | ||||||||||||
|
Net income
|
$ | 182,466 | $ | 104,328 | $ | 616,038 | $ | 70,685 | ||||||||
|
Basic net income per
share
|
$ | 0.01 | $ | 0.01 | $ | 0.04 | $ | 0.00 | ||||||||
|
Basic weighted average shares
outstanding
|
14,095,210 | 14,075,662 | 14,080,536 | 14,075,662 | ||||||||||||
|
Diluted weighted net income per
share
|
$ | 0.01 | $ | 0.01 | $ | 0.04 | $ | 0.00 | ||||||||
|
Diluted weighted average shares
outstanding
|
15,531,770 | 16,031,553 | 15,840,336 | 14,754,252 | ||||||||||||
|
NOTIFY
TECHNOLOGY CORPORATION
|
|
Condensed Balance
Sheets
|
|
Sept. 30,
|
Sept. 30,
|
|||||||
|
2010
|
2009
|
|||||||
|
Audited
|
Audited
|
|||||||
|
Assets:
|
||||||||
|
Current
assets:
|
||||||||
|
Cash and cash
equivalents
|
$ | 2,526,654 | $ | 1,565,447 | ||||
|
Accounts receivable,
net
|
292,040 | 810,543 | ||||||
|
Other
assets
|
44,570 | 40,540 | ||||||
|
Total current
assets
|
2,863,264 | 2,416,530 | ||||||
|
Non-current
assets
|
||||||||
|
Property and equipment,
net
|
306,380 | 247,117 | ||||||
|
Lease
deposits
|
15,602 | 15,602 | ||||||
|
Total non-current
assets
|
321,982 | 262,719 | ||||||
|
Total
assets
|
$ | 3,185,246 | $ | 2,679,249 | ||||
|
Liabilities and shareholders’
deficit
|
||||||||
|
Current
liabilities:
|
||||||||
|
Current portion of capital lease
obligation
|
$ | 3,369 | $ | 4,142 | ||||
|
Accounts
payable
|
55,378 | 75,340 | ||||||
|
Accrued payroll and related
liabilities
|
405,203 | 454,946 | ||||||
|
Deferred
revenue
|
2,927,067 | 2,995,906 | ||||||
|
Other accrued
liabilities
|
123,066 | 140,464 | ||||||
|
Total current
liabilities
|
3,514,083 | 3,670,798 | ||||||
|
Long-term
liabilities:
|
||||||||
|
Long-term Deferred
revenue
|
112,696 | 137,250 | ||||||
|
Long-term capital lease
obligations
|
3,174 | 6,543 | ||||||
|
Total
long-term liabilities
|
115,870 | 143,793 | ||||||
|
Total
liabilities
|
3,629,953 | 3,814,591 | ||||||
|
Shareholders'
deficit:
|
||||||||
|
Preferred
stock
|
- - | - - | ||||||
|
Common
stock
|
14,111 | 14,076 | ||||||
|
Additional paid-in
capital
|
23,516,722 | 23,442,160 | ||||||
|
Accumulated
deficit
|
(23,975,540 | ) | (24,591,578 | ) | ||||
|
Total shareholders’
deficit
|
(444,707 | ) | (1,135,342 | ) | ||||
|
Total liabilities and
shareholders' deficit
|
$ | 3,185,246 | $ | 2,679,249 | ||||