SAN JOSE, Calif., March 2, 2011 /PRNewswire/ -- Notify Technology Corporation (Pink Sheets: NTFY) today announced preliminary financial results for its first fiscal quarter ended December 31, 2010.
Total fiscal first quarter revenue increased to $1,840,487 in the three-month period ended December 31, 2010 from $1,796,645 during the same period in the prior year. Net income for the three month period ended December 31, 2010 was $15,303 or $0.00 per diluted share. The company's financial performance was down from a net income of $131,653 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 our continued investment in developing a new product line for release in April 2011.
The company also experienced a 73% increase in cash and cash equivalents at December 31, 2010 as compared to cash and cash equivalents at December 31, 2009.
"Although sales have continued to be healthy, we look forward to releasing our new mobile device management product, NotifyMDM," said Paul DePond, President and Chief Executive Officer of the company. "The mobility market continues to expand at historic rates creating a fantastic opportunity for Notify's next generation product."
Sales and Marketing expenses were $668,309 in the three-month period ended December 31, 2010 compared to $715,990 in the three-month period ended December 31, 2009. The decrease was primarily the result of a decrease in salary and commission expenses.
Research and Development expenses were $721,550 in the three-month period ended December 31, 2010 compared to $453,850 in the three-month period ended December 31, 2009. The increase was due to an increased investment in our design and testing staff to meet the demands of a rapidly expanding smart phone market. Our development efforts were devoted to creating our new NotifyMDM product.
General and Administrative expenses were decreased to $426,037 in the three-month period ended December 31, 2010 compared to $485,184 for the three-month period ended December 31, 2009. The decrease is primarily due to lower compensation expense.
About Notify Technology Corporation
Founded in 1994, Notify Technology Corporation (NTFY.PK) is an independent software vendor (ISV) who has specialized in wireless mobility solutions and services for the past 10 years. Notify's products support all major mobile device 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, Microsoft Development Partner, HP/Palm Select Partner, and Symbian Alliance Partner. The Company is headquartered in San Jose, California. For more information, visit http://www.notifycorp.com or contact 408-777-7930.
Forward-Looking Statements: This press release contains forward-looking statements related to Notify Technology Corporation that involve risks and uncertainties, including, but not limited to, statements regarding the changes in asset balances on the balance sheet, the launch of new wireless devices and product lines and the improving performance of the Company's wireless product. Those statements are based on unaudited current information and expectations and there are important factors that could cause actual results to differ materially from those anticipated by such statements. These risks include, but are not limited to, Notify's ability to deliver products and manage growth, its ability to continue to improve its existing products or develop new products or technologies, and its ability to maintain revenue growth as well as other risks. In particular, management cannot predict future NotifyLink and NotifySync revenues with any accuracy and does not know whether NotifyLink and NotifySync revenues will continue to grow at the rates recently experienced, if at all. Increasing NotifyLink and NotifySync revenues will require, among other things, continued investments in the Company's sales and marketing organization and Notify has limited available cash resources to make these investments. These forward-looking statements are made in reliance on the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. For further information about these factors that could affect Notify Technology's future results, please see the Company's filings with the Securities and Exchange Commission. Prospective investors are cautioned that forward-looking statements are not guarantees of performance. Actual results may differ materially from management's expectations.
NOTIFY TECHNOLOGY CORPORATION
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SOURCE Notify Technology Corporation