2014

Notify Technology Reports Results for the First Fiscal Quarter Ended December 31, 2011

SAN JOSE, Calif., March 8, 2012 /PRNewswire/ -- Notify Technology Corporation (NTFY.PK) today announced financial results for its first fiscal quarter ended December 31, 2011.

Total fiscal first quarter revenue decreased to $1,606,851 in the three-month period ended December 31, 2011 from $1,840,487 during the same period in the prior year.  The net loss for the three month period ended December 31, 2011 was $410,761 or $(5.82) per diluted share. The company's financial performance was down from a net income of $15,303 or $0.19 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 sales of the NotifyLink product line and the expense of our investment in developing our new mobile device management product line, NotifyMDM.  

"This past quarter we announced our first NotifyMDM OEM relationship with CommonTime LTD located in the United Kingdom. CommonTime will integrate our NotifyMDM technology into their product line and make it available to their new and current customers around the world as CommonTime MDM," said Paul DePond, President and Chief Executive Officer of the company. "As a result of our commitment to achieving a leadership position in the mobile device management market, we have increased our development expenses by 19% as compared to last year's expenditures while forgoing any short term profitability."

Sales and Marketing expenses were $741,899 in the three-month period ended December 31, 2011 compared to $668,309 in the three-month period ended December 31, 2010.  The increase was the result of additions to our outside sales force and by marketing expenditures to support the new product introduction of NotifyMDM.

Research and Development expenses were $855,614 in the three-month period ended December 31, 2011 compared to $721,550 in the three-month period ended December 31, 2010.  The increase was due to an increased investment in our design and testing staff to accelerate the completion of our new NotifyMDM product and meet the demands of a rapidly expanding smart phone and tablet market.  

General and Administrative expenses decreased to $409,159 in the three-month period ended December 31, 2011 compared to $426,037 for the three-month period ended December 31, 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 11 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.

(Financial Tables Follow)

NOTIFY TECHNOLOGY CORPORATION

CONDENSED STATEMENTS OF OPERATIONS



Three-Month Periods


Ended December 31,



2011


2010



(Unaudited)






Revenue:




  Product sales

$   1,606,851


$   1,840,487

Total revenue

1,606,851


1,840,487









Cost of revenue:




  Product cost

15,287


9,076

  Royalty payments

765


1,977

Total cost of revenue

16,052


11,053

Gross profit

1,590,799


1,829,434






Operating expenses:





Research and development

855,594


721,550


Sales and marketing

741,899


668,309


General and administrative

409,159


426,037

Total operating expenses

2,006,652


1,815,896






Income (loss) from operations

(415,853)


13,538






Interest income and other, net

5,092


1,765

Net income (loss) before provision for




income taxes

 (410,761)


  15,303





Provision for income taxes

- -


- -

Net income (loss)

$  (410,761)


$  15,303






Basic net income (loss) per share





$  (5.82)


$  0.22






Basic weighted average shares

70,541


70,541

outstanding








Diluted net income (loss) per share





$  (5.82)


$  0.19





Diluted weighted average shares




outstanding

70,541


79,400







NOTIFY TECHNOLOGY CORPORATION

Condensed Balance Sheets






Dec. 31,


Sept. 30,





2011


2011





Unaudited


Audited

Assets:







Current assets:







Cash and cash equivalents



$  1,430,748


$  2,040,580


Accounts receivable, net



876,071


271,251


Other assets



43,527


83,235

Total current assets



2,350,346


2,395,066


Non-current assets







Property and equipment, net



286,906


312,272


Lease deposits



15,602


15,602


Total non-current assets



302,508


327,874


Total assets



$ 2,652,854


$  2,722,940

Liabilities and shareholders' deficit






Current liabilities:







Current portion of capital lease obligation



$         2,706


$       2,665


Accounts payable



40,725


65,103


Accrued payroll and related liabilities



519,318


426,151


Deferred revenue



3,112,937


2,839,051


Other accrued liabilities



106,456


128,915

Total current liabilities



3,782,142


3,461,885

Long-term liabilities:







Long-term Deferred revenue



82,003


88,142


Long-term capital lease obligations



11,428


12,120

    Total long-term liabilities



93,431


100,262

Total liabilities



3,875,573


3,562,147

Shareholders' deficit:







Preferred stock



- -


- -


Common stock



71


71


Additional paid-in capital



23,651,279


23,624,030


Accumulated deficit



(24,874,069)


(24,463,308)

Total shareholders' deficit



(1,222,719)


(839,207)


Total liabilities and shareholders' deficit


$  2,652,854


$  2,722,940



Contacts:

At Notify Technology Corporation:
Jerry Rice, Chief Financial Officer
Phone: 408-777-7927
jerry.rice@notifycorp.com

SOURCE Notify Technology Corporation



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http://www.notifycorp.com

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