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Notify Technology Reports Results for the Fiscal Year Ended September 30, 2011

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SAN JOSE, Calif., Dec. 7, 2011 /PRNewswire/ -- Notify Technology Corporation (Pink Sheets: NTFY.PK) today announced financial results for its fiscal year ended September 30, 2011.

Total fiscal twelve-month revenue decreased 6% to $6,833,885 in the twelve-month period ended September 30, 2011 from $7,245,983 during the same period in the prior year.  The net loss for the twelve-month period ended September 30, 2011 was $487,768 or $6.91 per diluted share. The company's financial performance dropped from net income of $616,038 or $8.75 per diluted share, reported for the same period in the prior year. The decrease in net income for the fiscal year reflects a combination of a reduction in new account sales of NotifyLink and increased spending to develop and launch its new NotifyMDM product line.

"This has been an exciting year for Notify as we have officially entered the mobile device management (MDM) market. In April we launched both our NotifyMDM On-Premise and On-Demand products which incorporate a level of design and user interface which is representative of 11 years of mobility experience," said Paul DePond, President and Chief Executive Officer of the company. "We are committed to enhancing our NotifyLink and NotifySync products while advancing the functionality of our NotifyMDM product to meet the competitive requirements in the MDM marketplace. Our commitment required an increase in our investment in product development by over 25% while reducing our profitability for FY 2011. The increased spending provided the additional development resources necessary to enhance our NotifyMDM product's functionality to remain competitive in a fast moving market."

Sales and Marketing expenses were $2,504,948 in the twelve-month period ended September 30, 2011 compared to $2,510,970 in the twelve-month period ended September 30, 2010.  Spending remained flat even though we have increased our participation in industry marketing.

Research and Development expenses were $3,079,921 in the twelve-month period ended September 30, 2011 compared to $2,256,301 in the twelve-month period ended September 30, 2010.  The increase was due to investment in costs to expedite the development and release of our NotifyMDM product line while still maintaining the capability to improve and support our NotifySync and NotifyLink products.

General and Administrative expenses decreased to $1,722,342 in the twelve-month period ended September 30, 2011 compared to $1,814,600 for the twelve-month period ended September 30, 2010.  The decrease was primarily due to our decision to delist in fiscal 2011.

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 and NotifyMDM support all major smartphone 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, Windows Phone, and Symbian Alliance Member.  The Company is headquartered in San Jose, California.  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)


NOTIFY TECHNOLOGY CORPORATION
CONDENSED STATEMENTS OF OPERATIONS

 

 

Three-Month Periods

 

Twelve-Month Periods

 

Ended September 30,

 

Ended September 30,

 

2011

 

2010

 

2011

 

2010

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

 

   Product revenue

$  1,636,814

 

$ 1,878,112

 

$6,833,885

 

$ 7,245,983

Total revenue

1,636,814

 

1,878,112

 

6,833,885

 

7,245,983

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

   Product cost

4,449

 

18,612

 

24,689

 

45,743

   Royalty payments

1,195

 

1,371

 

5,291

 

6,474

Total cost of revenue

5,644

 

19,983

 

29,980

 

52,217

Gross profit

1,631,170

 

1,858,129

 

6,803,905

 

7,193,766

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

796,801

 

676,429

 

3,079,921

 

2,256,301

 

Sales and marketing

602,161

 

555,371

 

2,504,948

 

2,510,970

 

General and administrative

455,981

 

444,863

 

1,722,342

 

1,814,600

Total operating expenses

1,854,943

 

1,676,663

 

7,307,211

 

6,581,871

 

 

 

 

 

 

 

 

 

Income from operations

(223,773)

 

181,466

 

(503,306)

 

611,895

 

 

 

 

 

 

 

 

 

Interest income and other, net

3,344

 

1,310

 

15,538

 

4,143

 

 

 

 

 

 

 

 

 

Net income (loss) before provision for income taxes

(220,430)

 

182,776

 

(487,768)

 

4,143

 

 

 

 

 

 

 

 

Provision for income taxes

--

 

--

 

--

 

--

Net income (loss)

$  (220,429)

 

$  182,466

 

$  (487,768)

 

$616,038

 

 

 

 

 

 

 

 

 

Basic net income (loss) per share

$   (3.12)

 

$  2.59

 

$  (6.91)

 

$ 7.82

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding

70,556

 

70,476

 

70,556

 

70,403

 

 

 

 

 

 

 

 

Diluted weighted net income (loss) per share

$  (3.12)

 

$  2.35

 

$  (6.91)

 

$ 8.75

 

 

 

 

 

 

 

 

Diluted weighted average shares outstanding

70,556

 

77,658

 

70,556

 

79,201

 

 

 

 

 

 

 

 

 

 

 

NOTIFY TECHNOLOGY CORPORATION
Condensed Balance Sheets


 

 

 

 

Sept. 30,

 

Sept. 30,

 

 

 

 

 

2011

 

2010

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$  2,040,580

 

$  2,526,654

 

 

Accounts receivable, net

 

 

271,251

 

292,040

 

 

Other assets

 

 

83,235

 

44,570

 

Total current assets

 

 

2,395,066

 

2,863,264

 

 

Non-current assets

 

 

 

 

 

 

 

Property and equipment, net

 

 

312,272

 

306,380

 

 

Lease deposits

 

 

15,602

 

15,602

 

 

Total non-current assets

 

 

327,874

 

321,982

 

 

Total assets

 

 

$ 2,722,940

 

$  3,185,246

 

Liabilities and shareholders' deficit

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Current portion of capital lease obligation

 

 

$         2,665

 

$       3,369

 

 

Accounts payable

 

 

65,103

 

55,378

 

 

Accrued payroll and related liabilities

 

 

426,151

 

405,203

 

 

Deferred revenue

 

 

2,839,051

 

2,927,067

 

 

Other accrued liabilities

 

 

128,915

 

123,066

 

Total current liabilities

 

 

3,461,885

 

3,514,083

 

Long-term liabilities:

 

 

 

 

 

 

 

Long-term Deferred revenue

 

 

88,142

 

112,696

 

 

Long-term capital lease obligations

 

 

12,120

 

3,174

 

     Total long-term liabilities

 

 

100,262

 

115,870

 

Total liabilities

 

 

3,562,147

 

3,629,953

 

Shareholders' deficit:

 

 

 

 

 

 

 

Preferred stock

 

 

- -

 

- -

 

 

Common stock

 

 

71

 

71

 

 

Additional paid-in capital

 

 

23,624,030

 

23,530,762

 

 

Accumulated deficit

 

 

(24,463,308)

 

(23,975,540)

 

Total shareholders' deficit

 

 

(839,207)

 

(444,707)

 

 

Total liabilities and shareholders' deficit

 

$  2,722,940

 

$  3,185,246

 

 

 

 

 

 

 

 

 

 

 

 

 

SOURCE Notify Technology Corporation



RELATED LINKS
http://www.notifycorp.com

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