2014

Notify Technology Reports Results for the Second Fiscal Quarter Ended March 31, 2012

SAN JOSE, Calif., May 16, 2012 /PRNewswire/ -- Notify Technology Corporation (NTFY.PK) today announced financial results for its second fiscal quarter ended March 31, 2012.

Total fiscal second quarter revenue decreased to $1,624,524 in the three-month period ended March 31, 2012 from $1,712,765 during the same period in the prior year.  The net loss for the three month period ended March 31, 2012 was $305,462 or $(4.33) per diluted share. The company's financial performance was down from a net loss of $86,926 or $1.23 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.

"We released our NotifyMDM integrated with CommonTime's MSuite product in April 2012 now available to CommonTime's new and current customers around the world as CommonTime MDM," said Paul DePond, President and Chief Executive Officer of the company. "We also took steps to streamline our operations while still maintaining our ability to service our existing customers and continue enhancing our NotifyMDM product."

Sales and Marketing expenses were $665,512 in the three-month period ended March 31, 2012 compared to $591,866 in the three-month period ended March 31, 2011.  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 $852,109 in the three-month period ended March 31, 2012 compared to $762,783 in the three-month period ended March 31, 2011.  The increase was due to an increased investment in our design and testing staff to accelerate the development of our NotifyMDM product and meet the demands of a rapidly expanding smart phone and tablet market. 

General and Administrative expenses decreased to $386,745 in the three-month period ended March 31, 2012 compared to $438,376 for the three-month period ended March 31, 2011.  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. 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

Six-Month Periods


Ended March 31,

Ended March 31,



2012

2011


2012

2011












Revenue:







   Product revenue

$  1,624,524


$ 1,712,765


$ 3,231,375


$ 3,553,251

Total revenue

1,624,524


1,712,765


3,231,375


3,553,251

















Cost of revenue:








   Product cost

24,339


7,615


39,626


16,691

   Royalty payments

3,405


1,141


4,170


3,118

Total cost of revenue

27,744


8,756


43,796


19,809

Gross profit

1,596,780


1,704,009


3,187,579


3,533,442










Operating expenses:









Research and development

852,109


762,783


1,707,702


1,484,333


Sales and marketing

665,512


591,866


1,407,412


1,260,174


General and administrative

386,745


438,376


795,904


864,413

Total operating expenses

1,904,366


1,793,025


3,911,018


3,608,920










Income/(loss) from operations

(307,586)


(89,016)


(723,439)


(75,478)










Other interest (expense),  net

2,124


2,090


7,216


3,855










Net income (loss)

$  (305,462)


$ (86,926)


$ (716,223)


$ (71,623)










Basic net income (loss) per share

$  (4.33)


$  (1.23)


$  (10.10)


$ (1.02)










Basic weighted average shares outstanding

70,541


70,541


70,541


70,541









Diluted net income (loss) per share

$  (4.33)


$  (1.23)


$  (10.10)


$  (1.02)









Diluted weighted average shares outstanding

70,541


70,541


70,541


70,541











NOTIFY TECHNOLOGY CORPORATION

Condensed Balance Sheets






Mar. 31,


Sept. 30,





2012


2011





Unaudited


Audited

Assets:







Current assets:







Cash and cash equivalents



$  1,179,898


$  2,040,580


Accounts receivable, net



347,567


271,251


Other assets



41,701


83,235

Total current assets



1,569,166


2,395,066


Non-current assets







Property and equipment, net



254,112


312,272


Lease deposits



15,602


15,602


Total non-current assets



269,714


327,874


Total assets



$ 1,838,880


$  2,722,940

Liabilities and shareholders' deficit






Current liabilities:







Current portion of capital lease obligation



$         2,746


$       2,665


Accounts payable



18,081


65,103


Accrued payroll and related liabilities



408,150


426,151


Deferred revenue



2,728,360


2,839,051


Other accrued liabilities



109,142


128,915

Total current liabilities



3,266,479


3,461,885

Long-term liabilities:







Long-term Deferred revenue



75,865


88,142


Long-term capital lease obligations



10,726


12,120

     Total long-term liabilities



86,591


100,262

Total liabilities



3,353,070


3,562,147

Shareholders' deficit:







Preferred stock



- -


- -


Common stock



71


71


Additional paid-in capital



23,665,271


23,624,030


Accumulated deficit



(25,179,532)


(24,463,308)

Total shareholders' deficit



(1,514,190)


(839,207)


Total liabilities and shareholders' deficit


$  1,838,880


$  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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