2014

Notify Technology Reports Preliminary Results for the First Fiscal Quarter Ended December 31, 2010

SAN JOSE, Calif., March 2, 2011 /PRNewswire/ -- Notify Technology Corporation (Pink Sheets: NTFY) today announced preliminary financial results for its first fiscal quarter ended December 31, 2010.

Total fiscal first quarter revenue increased to $1,840,487 in the three-month period ended December 31, 2010 from $1,796,645 during the same period in the prior year.  Net income for the three month period ended December 31, 2010 was $15,303 or $0.00 per diluted share. The company's financial performance was down from a net income of $131,653 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 our continued investment in developing a new product line for release in April 2011.  

The company also experienced a 73% increase in cash and cash equivalents at December 31, 2010 as compared to cash and cash equivalents at December 31, 2009.  

"Although sales have continued to be healthy, we look forward to releasing our new mobile device management product, NotifyMDM," said Paul DePond, President and Chief Executive Officer of the company. "The mobility market continues to expand at historic rates creating a fantastic opportunity for Notify's next generation product."

Sales and Marketing expenses were $668,309 in the three-month period ended December 31, 2010 compared to $715,990 in the three-month period ended December 31, 2009.  The decrease was primarily the result of a decrease in salary and commission expenses.

Research and Development expenses were $721,550 in the three-month period ended December 31, 2010 compared to $453,850 in the three-month period ended December 31, 2009.  The increase was due to an increased investment in our design and testing staff to meet the demands of a rapidly expanding smart phone market.  Our development efforts were devoted to creating our new NotifyMDM product.

General and Administrative expenses were decreased to $426,037 in the three-month period ended December 31, 2010 compared to $485,184 for the three-month period ended December 31, 2009.  The decrease is primarily due to lower compensation expense.

About Notify Technology Corporation

Founded in 1994, Notify Technology Corporation (NTFY.PK) is an independent software vendor (ISV) who has specialized in wireless mobility solutions and services for the past 10 years. Notify's products support all major mobile device 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, Microsoft Development Partner, HP/Palm Select Partner, and Symbian Alliance Partner. The Company is headquartered in San Jose, California. For more information, visit http://www.notifycorp.com or contact 408-777-7930.

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 changes in asset balances on the balance sheet, the launch of new wireless devices and product lines and the improving performance of the Company's wireless product.  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.

Contacts:

At Notify Technology Corporation:

Jerry Rice, Chief Financial Officer

Phone: 408-777-7927

jerry.rice@notifycorp.com


(Financial Tables Follow)



NOTIFY TECHNOLOGY CORPORATION

CONDENSED STATEMENTS OF INCOME



Three-Month Periods


Ended December 31,



2010


2009



(Unaudited)






Revenue:




  Product sales

$   1,840,487


$   1,796,645

Total revenue

1,840,487


1,796,645





Cost of revenue:




  Product cost

9,076


9,064

  Royalty payments

1,977


1,991

Total cost of revenue

11,053


11,055

Gross profit

1,829,434


1,785,590






Operating expenses:





Research and development

721,550


453,850


Sales and marketing

668,309


715,990


General and administrative

426,037


485,184

Total operating expenses

1,815,896


1,529,387






Income from operations

13,538


130,566






Interest income and other, net

1,765


1,087

Net income before provision for income taxes

15,303


131,653





Provision for income taxes

- -


- -

Net income

$  15,303


$  131,653






Basic net income per share

$  0.00


$  0.01






Basic weighted average shares outstanding

14,211,217


14,075,662





Diluted net income per share

$  0.00


$  0.01





Diluted weighted average shares outstanding

15,880,672


15,904,358







NOTIFY TECHNOLOGY CORPORATION

Condensed Balance Sheets




Dec. 31,


Dec. 31,



2010


2009



Unaudited


Audited

Assets:





Current assets:





Cash and cash equivalents

$  2,964,418


$  2,526,654


Accounts receivable, net

407,248


292,040


Other assets

49,317


44,570

Total current assets

3,420,983


2,863,264


Non-current assets





Property and equipment, net

292,468


306,380


Lease deposits

15,602


15,602


Total non-current assets

308,070


321,982


Total assets

$ 3,729,053


$  3,185,246

Liabilities and shareholders' deficit




Current liabilities:





Current portion of capital lease obligation

$         2,545


$       3,369


Accounts payable

106,445


55,378


Accrued payroll and related liabilities

453,317


405,203


Deferred revenue

3,327,513


2,927,067


Other accrued liabilities

141,005


123,066

Total current liabilities

4,030,825


3,514,083

Long-term liabilities:





Long-term Deferred revenue

106,557


112,696


Long-term capital lease obligations

3,222


3,174

    Total long-term liabilities

109,779


115,870

Total liabilities

4,140,604


3,629,953

Shareholders' deficit:





Preferred stock

- -


- -


Common stock

14,111


14,111


Additional paid-in capital

23,534,575


23,516,722


Accumulated deficit

(23,960,237)


(24,975,540)

Total shareholders' deficit

(411,551)


(444,707)


Total liabilities and shareholders' deficit

$  3,729,053


$  3,185,246



SOURCE Notify Technology Corporation



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http://www.notifycorp.com

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