2014

Notify Technology Reports Results for the Third Fiscal Quarter Ended June 30, 2012

SAN JOSE, Calif., Aug. 17, 2012 /PRNewswire/ -- Notify Technology Corporation (NTFY.PK) today announced financial results for its third fiscal quarter ended June 30, 2012.

Total fiscal third quarter revenue decreased to $1,452,985 in the three-month period ended June 30, 2012 from $1,643,820 during the same period in the prior year.  The net loss for the three month period ended June 30, 2012 was $95,556 or $1.35 per diluted share. The company's financial performance was improved from a net loss of $195,715 or $2.77 per diluted share, reported for the same period in the prior year. The improvement in net income for the fiscal quarter reflects the combined impact of a decline in sales of the NotifyLink product line offset by reductions in headcount and spending.  Despite the reductions in spending, the Company continued its investment in developing the new mobile device management product line, NotifyMDM. 

"We took steps in March 2012 to streamline our operations while still maintaining our ability to service our existing customers and continue investing our NotifyMDM product.  We believe the success of NotifyMDM is critical to the Company's long term success," said Paul DePond, President and Chief Executive Officer of the company. "We continue to build relationships with OEM and reseller partners for NotifyMDM.  A particular focus will be providing companies of all sizes a solution for their current or future Bring Your Own Device ("BYOD") initiatives.  BYOD refers to the growing trend of companies allowing employee owned mobile devices to be used at work." 

Sales and Marketing expenses were $414,692 in the three-month period ended June 30, 2012 compared to $642,613 in the three-month period ended June 30, 2011.  The decrease in spending was the result of reductions in our direct sales force and a reduction in related sales costs.

Research and Development expenses were $717,138 in the three-month period ended June 30, 2012 compared to $798,786 in the three-month period ended June 30, 2011.  The decrease was due to minor headcount reductions in our test department.  Our commitment to product development remains a critical objective as we continue to invest in our NotifyMDM product to meet the demands of a rapidly expanding smart phone and tablet market. 

General and Administrative expenses decreased to $403,371 in the three-month period ended June 30, 2012 compared to $401,948 for the three-month period ended June 30, 2011.  Although we have reduced compensation costs, we incurred increased legal costs related to the reduction in force in March 2012.

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 iOS Enterprise Development Partner, Android Development Partner, BlackBerry Development Partner, Windows Mobile and Windows Phone Development Partner, and Symbian Alliance Member. 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 OPERATIONS










Three-Month Periods


Nine-Month Periods



Ended June 30,


Ended June 30,




2012


2011


2012


2011

















Revenue:








  Product revenue

$ 1,452,985


$ 1,643,820


$ 4,684,361


$ 5,197,071

Total revenue

1,452,985


1,643,820


4,684,361


5,197,071

















Cost of revenue:








  Product cost

8,388


3,549


48,014


20,240

  Royalty payments

8,045


978


12,216


4,096

Total cost of revenue

16,433


4,527


60,230


24,336

Gross profit

1,436,552


1,639,293


4,624,131


5,172,735









Operating expenses:








  Research and development

717,138


798,786


2,424,841


2,283,120

  Sales and marketing

414,692


642,613


1,822,104


1,902,787

  General and administrative

403,371


401,948


1,199,275


1,266,361

Total operating expenses

1,535,201


1,843,347


5,446,220


5,452,268









Income/(loss) from operations

(98,649)


(204,054)


(822,089)


(279,533)









Other income (expense), net

3,093


8,339


10,309


12,194









Net income (loss)

$ (95,556)


$ (195,715)


$ (811,780)


$ (267,339)









Basic net income (loss) per share

$ (1.35)


$ (2.77)


$ (11.49)


$ (3.79)









Basic weighted average shares outstanding

70,541


70,541


70,541


70,541









Diluted net income (loss) per share

$     (1.35)


$ (2.77)


$ (11.49)


$ (3.79)









Diluted weighted average shares outstanding

70,541


70,541


70,541


70,541







NOTIFY TECHNOLOGY CORPORATION


Condensed Balance Sheets






June 30, 2012


Sept. 30, 2011






Unaudited


Audited


Assets:








Current assets:








Cash and cash equivalents



$  919,730


$  2,040,580



Accounts receivable, net



210,791


271,251



Other assets



28,294


83,235


Total current assets



1,158,815


2,395,066



Non-current assets








Property and equipment, net



219,819


312,272



Lease deposits



15,602


15,602



Total non-current assets



235,421


327,874



Total assets



$ 1,394,236


$  2,722,940


Liabilities and shareholders' deficit







Current liabilities:








Current portion of capital lease obligation



$         2,788


$       2,665



Accounts payable



64,049


65,103



Accrued payroll and related liabilities



436,516


426,151



Deferred revenue



2,303,104


2,839,051



Other accrued liabilities



103,795


128,915


Total current liabilities



2,910,252


3,461,885


Long-term liabilities:








Long-term deferred revenue



69,726


88,142



Long-term capital lease obligations



10,013


12,120


     Total long-term liabilities



79,739


100,262


Total liabilities



2,989,991


3,562,147


Shareholders' deficit:








Preferred stock



- -


- -



Common stock



71


71



Additional paid-in capital



23,679,262


23,624,030



Accumulated deficit



(25,275,088)


(24,463,308)


Total shareholders' deficit



(1,595,755)


(839,207)



Total liabilities and shareholders' deficit


$  1,394,236


$  2,722,940












SOURCE Notify Technology Corporation



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