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

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Feb 22, 2013, 03:20 ET

SAN JOSE, Calif., Feb. 22, 2013 /PRNewswire/ -- Notify Technology Corporation (Pink Sheets: NTFY.PK) today announced financial results for its fiscal quarter ended December 31, 2012.

Total revenue in the three-month period ended December 31, 2012 decreased 21% to $1,275,975 from $1,606,851 during the same period in the prior year. The net loss for the three-month period ended December 31, 2012 was $202,955 or $3.16 per diluted share which was an improvement from a net loss of $410,761, or $5.82 per diluted share, reported for the same period in the prior year. The decrease in revenue for the fiscal quarter reflects a combination of a reduction in sales of the NotifyLink and NotifySync products and the slower than anticipated growth of the NotifyMDM product line.

"Fiscal 2013 will be a transition year as we expect a continued reduction in demand for our NotifyLink products while ramping up sales of our new NotifyMDM product." said David Hanabusa, President and Chief Executive Officer of the company. "We are continually improving our MDM product and have invested heavily in development assets to do so. We have also streamlined our operation where we can without sacrificing product design."

Sales and Marketing expenses were $489,025 in the three-month period ended December 31, 2012 compared to $741,899 in the three-month period ended December 31, 2011. The significant decrease in spending was primarily due to reductions in compensation expense.

Research and Development expenses were $689,450 in the three-month period ended December 31, 2012 compared to $855,594 in the three-month period ended December 31, 2011. The decrease was due to reductions in compensation expense. We continue to invest heavily in the development of the NotifyMDM product line while still maintaining the capability to improve and support the NotifySync and NotifyLink products.

General and Administrative expenses decreased to $289,382 in the three-month period ended December 31, 2012 compared to $409,159 for the three-month period ended December 31, 2011. The decrease was primarily due to incurring minimal SEC filing costs and reducing executive compensation.

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.

(Financial Tables Follow)

NOTIFY TECHNOLOGY CORPORATION CONDENSED STATEMENTS OF OPERATIONS


		Three-Month Periods
		Ended December 31,
		2012	2011
		(unaudited)	(audited)

Revenue:
Product revenue		$ 1,275,975		$ 1,606,851
Total revenue		1,275,975		1,606,851


Cost of revenue:
Product cost		4,239		15,287
Royalty payments		8,768		765
Total cost of revenue		13,007		16,052
Gross profit		1,262,968		1,590,799

Operating expenses:
	Research and development	689,450		855,594
	Sales and marketing	489,025		741,899
	General and administrative	289,382		409,159
Total operating expenses		1,467,857		2,006,652

Income from operations		(204,889)		(415,853)

Interest income and other, net		1,934		5,092

Net income (loss) before provision for income taxes		(202,955)		(410,761)

Provision for income taxes		--		--
Net income (loss)		$ (202,955)		$ (410,761)

Basic net income (loss) per share		$ (3.16)		$ (5.82)

Basic weighted average shares outstanding		70,541		70,541

Diluted weighted net income (loss) per share		$ (3.16)		$ (5.82)

Diluted weighted average shares outstanding		70,541		70,541

NOTIFY TECHNOLOGY CORPORATION
Condensed Balance Sheets
			Dec. 31,	Dec. 31,
			2012	2011
			(unaudited)	(audited)
Assets:
Current assets:
		Cash and cash equivalents	$ 1,358,963	$ 1,430,748
		Accounts receivable, net	129,287	876,071
		Other assets	34,478	43,527
Total current assets			1,522,728	2,350,346
	Non-current assets
		Property and equipment, net	160,818	286,906
		Lease deposits	15,602	15,602
	Total non-current assets		176,420	302,508
		Total assets	$ 1,699,148	$ 2,652,854
Liabilities and shareholders' deficit
Current liabilities:
		Current portion of capital lease obligation	$ 2,872	$ 2,706
		Accounts payable	23,786	40,725
		Accrued payroll and related liabilities	427,827,	519,318
		Deferred revenue	2,951,432	3,112,937
		Other accrued liabilities	130,423	106,456
Total current liabilities			3,536,340	3,782,142
Long-term liabilities:
		Long-term Deferred revenue	57,449	82,003
		Long-term capital lease obligations	8,555	11,428
Total long-term liabilities			66,004	93,431
Total liabilities			3,602,344	3,875,573
Shareholders' deficit:
		Preferred stock	- -	- -
		Common stock	71	71
		Additional paid-in capital	23,706,639	23,651,279
		Accumulated deficit	(25,609,906)	(24,874,069)
Total shareholders' deficit			(1,903,196)	(1,222,719)
		Total liabilities and shareholders' deficit	$ 1,699,148	$ 2,652,854