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8-K - 2010 EARNINGS RELEASE FORM 8-K - hopTo Inc.form8k.htm
Exhibit 99.1
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Press Release For Immediate Release

Company Contact:
Company Contact:
William Swain, GraphOn Corporation
1.800.GRAPHON
Bill.Swain@GraphOn.com
 
   
GraphOn Corporation Reports Its Fourth Quarter and Fiscal 2010 Financial Results
 

SANTA CRUZ, CA, USA – February 11, 2011GraphOn® Corporation (OTCBB: GOJO.OB, www.graphon.com; www.facebook.com/graphon), a leading worldwide developer of application virtualization and Web-enabling solutions, today announced financial results for the fourth quarter of 2010, which continues to include strong growth in GO-Global product revenue and progress toward profitability.

Financial Highlights
Revenue was approximately $1.7 million for the three months ended December 31, 2010, as compared with approximately $1.5 million for the same period of 2009.  Revenue was approximately $7.5 million for the fiscal year ended December 31, 2010, as compared with approximately $8.1 million for the same period of 2009.  GO-Global revenue grew by approximately $0.9 million for fiscal year 2010 as compared to fiscal year 2009, and by approximately $0.3 million during the fourth quarter of 2010 as compared with the fourth quarter of 2009.  The net loss for the three months ended December 31, 2010 was approximately $0.3 million, as compared with the approximately $1.1 million net loss for the same period of 2009.  The net loss for the fiscal year ended December 31, 2010 was approximately $0.9 million, as compared with the approximately $1.8 million net loss for the same period of 2009.  The loss per common share for the three months ended December 31, 2010 was $0.01 as compared with $0.02 for the same period in 2009.  The loss per common share for the fiscal year ended December 31, 2010 was $0.02 per share as compared with a loss of $0.04 per share for the same period in 2009.

"We continue to be very pleased with the increased revenue produced by our GO-Global business in both the current quarter and the fiscal year compared to the same periods in 2009,” Robert Dilworth, Chairman and CEO, said. “We experienced an increase of approximately 19% in fourth quarter 2010 GO-Global revenue over the corresponding quarter of the prior year, and an approximate 15% increase in the fiscal year GO-Global revenue over the prior fiscal year.  As expected, our intellectual property license revenue was lower in the current fiscal year as compared to the previous fiscal year.  We are optimistic about the continued growth of our GO-Global revenue as we will soon be announcing the availability of the GO-Global Cloud, which we believe will enhance our current GO-Global product family and strengthen our product offering in the private cloud, web enablement and virtualization markets. We continue to invest research and development resources in new capabilities for our GO-Global products with the objective of providing increasingly attractive, easily used and cost effective solutions for our customers.”

About GraphOn Corporation
For over a decade, GraphOn Corporation has been an innovator of cost-effective, advanced solutions that help customers access applications from anywhere.  GraphOn’s high-performance software provides fast remote access, cross-platform connectivity, and a centralized architecture that delivers a dramatically lower cost of ownership.  The company’s solutions run under Microsoft (MSFT) Windows, Linux, and UNIX, including Sun (SUNW) Solaris, IBM AIX, Hewlett-Packard (HPQ) HP-UX, and more.  GraphOn is located in Santa Cruz, CA and is traded on the Over the Counter Bulletin Board under the ticker GOJO (OTCBB:GOJO). For more information, please visit the company's Web site at http://www.graphon.com or visit them on Facebook at www.facebook.com/graphon.


 
 

 

GraphOn Financial Results
Page Two

GRAPHON CORPORATION
           
 Condensed Consolidated Balance Sheets
           
   
December 31,
   
December 31,
 
   
2010
   
2009
 
   
(Unaudited)
   
(Unaudited)
 
 Assets
           
 Cash
  $ 1,891,000     $ 2,852,900  
 Accounts receivable, net
    1,015,900       839,600  
 Other current assets
    77,100       64,500  
 Total current assets
    2,984,000       3,757,000  
 Property and equipment, net
    69,900       127,100  
 Patents, net
    39,300       511,700  
 Capitalized software, net
    237,700        
 Other assets
    8,100       14,800  
 Total assets
  $ 3,339,000     $ 4,410,600  
                 
 Liabilities and stockholders' equity
               
 Accounts payable and accrued liabilities
  $ 736,300     $ 986,200  
 Deferred revenue - current
    2,058,300       1,862,600  
 Total current liabilities
    2,794,600       2,848,800  
 Deferred revenue - long term
    640,200       836,200  
 Stockholders' (deficit) equity
    (95,800 )     725,600  
 Total liabilities and stockholders' equity
  $ 3,339,000     $ 4,410,600  

Condensed Consolidated Statements of Operations and Comprehensive Loss
   
                     
   
Three Months Ended December 31,
   
Year Ended December 31,
   
2010
   
2009
   
2010
 
2009
   
(Unaudited)
   
(Unaudited)
   
(Unaudited)
 
(Unaudited)
 Revenue - Software
  $ 1,738,600     $ 1,466,200     $ 6,641,500   $ 5,777,200  
 Revenue - Intellectual property
                875,000     2,300,000  
 Total Revenue
    1,738,600       1,466,200       7,516,500     8,077,200  
 Cost of revenue - Software
    126,500       113,400       487,800     485,100  
 Cost of revenue - Intellectual property
                338,100     896,000  
 Total Cost of revenue
    126,500       113,400       825,900     1,381,100  
 Gross profit
    1,612,100       1,352,800       6,690,600     6,696,100  
                                 
 Selling and marketing
    566,100       475,400       2,170,100     1,871,500  
 General and administrative
    676,100       1,284,900       2,963,700     3,889,600  
 Research and development
    659,600       671,300       2,466,700     2,768,600  
 Total operating expenses
    1,901,800       2,431,600       7,600,500     8,529,700  
 Loss from operations
    (289,700 )     (1,078,800 )     (909,900 )   (1,833,600 )
 Other income (expense), net
    700       (600 )     3,100     15,400  
 Loss before income taxes
    (289,000 )     (1,079,400 )     (906,800 )   (1,818,200 )
 Income taxes
    600       400       3,200     2,000  
 Net loss
    (289,600 )     (1,079,800 )     (910,000 )   (1,820,200 )
 Other comprehensive income (loss)
                     
 Comprehensive loss
  $ (289,600 )   $ (1,079,800 )   $ (910,000 ) $ (1,820,200 )
 Loss per common share - basic and diluted
  $ (0.01 )   $ (0.02 )   $ (0.02 ) $ (0.04 )
 Weighted average shares outstanding - basic and diluted
    45,981,625       46,774,509       45,973,691     47,212,851  


This press release contains statements that are forward looking as that term is defined by the United States Private Securities Litigation Reform Act of 1995. These statements are based on current expectations that are subject to risks and uncertainties. Actual results will differ due to factors such as shifts in customer demand, product shipment schedules, product mix, competitive products and pricing, technological shifts and other variables. Readers are referred to GraphOn's most recent periodic and other reports filed with the Securities and Exchange Commission.

GraphOn and GO-Global are a registered trademarks of GraphOn Corp. All other trademarks belong to their respective owners.

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