Notify Technology Reports Results for the Third Fiscal Quarter Ended June 30, 2011

SAN JOSE, Calif., July 29, 2011 /PRNewswire/ -- Notify Technology Corporation today announced financial results for its third fiscal quarter ended June 30, 2011.

Total fiscal third quarter revenue decreased to $1,643,820 in the three-month period ended June 30, 2011 from $1,837,377 during the same period in the prior year.  The net loss for the three month period ended June 30, 2011 was $195,715 or $(0.01) per diluted share. The company's financial performance was down from a net income of $212,506 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 the combined impact of a decline in new customer sales of the NotifyLink product line and the expense of our investment in developing our new mobile device management product line, NotifyMDM.  

"Our strategic product emphasis continues to be focused on NotifyMDM our new mobile device management product," said Paul DePond, President and Chief Executive Officer of the company. "We have increased our investment in product development by 44% as compared to last year's expenditure to validate our commitment to achieving a leadership position in the mobile device management market over short term profitability."

Sales and Marketing expenses were $642,613 in the three-month period ended June 30, 2011 compared to $544,314 in the three-month period ended June 30, 2010.  The increase was the result of the addition to our outside sales force and by marketing expenditures to support the new product introduction of NotifyMDM.

Research and Development expenses were $798,786 in the three-month period ended June 30, 2011 compared to $605,502 in the three-month period ended June 30, 2010.  The increase was due to an increased investment in our design and testing staff to accelerate the completion of NotifyMDM and meet the demands of a rapidly expanding smart phone and tablet market.  

General and Administrative expenses decreased to $401,948 in the three-month period ended June 30, 2011 compared to $462,153 for the three-month period ended June 30, 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 10 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.

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 Period

Nine-Month Period


Ended June 30,

Ended June 30,



2011


2010


2011


2010












Revenue:







  Product revenue

$  1,643,820


$ 1,837,377


$ 5,197,071


$ 5,367,871

Total revenue

1,643,820


1,837,377


5,197,071


5,367,871

















Cost of revenue:








  Product cost

3,549


12,348


20,240


27,131

  Royalty payments

978


1,707


4,096


5,103

Total cost of revenue

4,527


14,055


24,336


32,234

Gross profit

1,639,293


1,823,322


5,172,735


5,335,637









Operating expenses:









Research and development

798,786


605,502


2,283,120


1,579,872


Sales and marketing

642,613


544,314


1,902,787


1,955,598


General and administrative

401,948


462,153


1,266,361


1,369,737

Total operating expenses

1,843,347


1,611,969


5,452,268


4,905,207










Income/(loss) from operations

(204,054)


211,353


(279,533)


430,430









Other interest (expense),  net

8,339


1,153


12,194


2,832









Net income (loss)

$  (195,715)


$ 212,506


$ (267,339)


$ 433,262









Basic net income (loss) per share

$  (0.01)


$  0.02


$  (0.02)


$ 0.03









Basic weighted average shares outstanding


14,111,217



14,075,662



14,111,217



14,076,629









Diluted net income (loss) per share

$  (0.01)


$  0.01


$  (0.02)


$  0.03









Diluted weighted average shares outstanding

14,111,217


14,849,281


14,111,217


15,949,153













NOTIFY TECHNOLOGY CORPORATION

Condensed Balance Sheets






June 30,


Sept. 30,






2011


2010






Unaudited


Audited


Assets:








Current assets:








Cash and cash equivalents



$  2,288,301


$  2,526,654



Accounts receivable, net



385,240


292,040



Other assets



138,019


44,570


Total current assets



2,811,560


2,863,264



Non-current assets








Property and equipment, net



291,835


306,380



Lease deposits



15,602


15,602



Total non-current assets



307,437


321,982



Total assets



$ 3,118,997


$  3,185,246


Liabilities and shareholders' deficit







Current liabilities:








Current portion of capital lease obligation



$         3,303


$       3,369



Accounts payable



42,567


55,378



Accrued payroll and related liabilities



477,306


405,203



Deferred revenue



3,007,666


2,927,067



Other accrued liabilities



137,136


123,066


Total current liabilities



3,667,978


3,514,083


Long-term liabilities:








Long-term Deferred revenue



94,281


112,696



Long-term capital lease obligations



877


3,174


    Total long-term liabilities



95,158


115,870


Total liabilities



3,763,136


3,629,953


Shareholders' deficit:








Preferred stock



- -


- -



Common stock



14,111


14,111



Additional paid-in capital



23,584,629


23,516,722



Accumulated deficit



(24,242,879)


(23,975,540)


Total shareholders' deficit



(644,139)


(444,707)



Total liabilities and shareholders' deficit


$  3,118,997


$  3,185,246





SOURCE Notify Technology Corporation



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http://www.notifycorp.com

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