Notify Technology Reports Results for the Fiscal Year Ended September 30, 2010

Revenue increases by 20% over annual revenue in the prior year.

Dec 21, 2010, 13:26 ET from Notify Technology Corporation

SAN JOSE, Calif., Dec. 21, 2010 /PRNewswire-FirstCall/ -- Notify Technology Corporation (OTC Bulletin Board: NTFY) today announced financial results for its fiscal year ended September 30, 2010.

Total fiscal twelve-month revenue increased 20% to $7,245,983 in the twelve-month period ended September 30, 2010 from $6,032,257 during the same period in the prior year. Net income for the twelve month period ended September 30, 2010 was $616,038 or $0.04 per diluted share. The company's financial performance is an improvement from net income of $70,685 or $0.01 per diluted share, reported for the same period in the prior year. The increase in net income for the fiscal year reflects the Company's continued success in growing and renewing customer accounts.  

The company also experienced a 61% increase in cash and cash equivalents at September 30, 2010 as compared to cash and cash equivalents at September 30, 2009.  

"It gives me great pleasure to report the financial results of fiscal 2010.  We have now reported our second consecutive profitable year," said Paul DePond, President and Chief Executive Officer of the company. "It is an achievement we are very satisfied with."

Sales and Marketing expenses were $2,510,970 in the twelve-month period ended September 30, 2010 compared to $2,322,315 in the twelve-month period ended September 30, 2009. The increase was primarily the result of an increase in salary and commission expenses.

Research and Development expenses were $2,256,301 in the twelve-month period ended September 30, 2010 compared to $1,917,614 in the twelve-month period ended September 30, 2009. The increase was due to the increased salary expense as we expanded our design and testing staff to meet the demands of a rapidly expanding smart phone market.  Our development efforts were devoted to increasing the feature set of our software products, porting our solution to new devices and creating new products.

General and Administrative expenses increased to $1,814,600 in the twelve-month period ended September 30, 2010 compared to $1,574,958 for the twelve-month period ended September 30, 2009.  The increase was primarily due to compensation expense related to personnel growth and bonuses for improved financial performance.

About Notify Technology Corporation

Founded in 1994, Notify Technology Corporation, (OTC BB: NTFY.OB) is an innovative software company developing mobility products for organizations of all sizes. Notify's wireless solutions provide secure synchronized email and PIM access and management to any size organization on a variety of wireless 2-way devices and networks. Notify sells its wireless products directly and through authorized resellers internationally. The company is headquartered in San Jose, California. For more information, visit http://www.notifycorp.com or contact 408-777-7920.

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 expected timing of the release of the Company's audited results.  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.

(Financial Tables Follow)

NOTIFY TECHNOLOGY CORPORATION CONDENSED STATEMENTS OF OPERATIONS

Three-Month Periods

Twelve-Month Periods

Ended September 30,

Ended September 30,

         2010

         2009

    2010

     2009

Revenue:

  Product revenue

$  1,878,112

$ 1,665,621

$7,245,983

$ 6,032,257

Total revenue

1,878,112

1,665,621

7,245,983

6,032,257

Cost of revenue:

  Product cost

18,612

--

45,743

8,620

  Royalty payments

1,371

35,891

6,474

144,963

Total cost of revenue

19,983

35,891

52,217

153,583

Gross profit

1,858,129

1,629,730

7,193,766

5,878,674

Operating expenses:

Research and development

676,429

467,883

2,256,301

1,917,614

Sales and marketing

555,371

614,023

2,510,970

2,322,315

General and administrative

444,863

447,481

1,814,600

1,574,958

Total operating expenses

1,676,663

1,529,387

6,581,871

5,814,887

Income from operations

181,466

100,343

611,895

63,787

Interest income and other, net

1,310

3,985

4,143

6,898

Net income before provision for income taxes

182,776

104,328

4,143

70,685

Provision for income taxes

--

--

--

--

Net income

$  182,466

$  104,328

$  616,038

$70,685

Basic net income per share

$  0.01

$  0.01

$  0.04

$ 0.00

Basic weighted average shares outstanding

14,095,210

14,075,662

14,080,536

14,075,662

Diluted weighted net income per share

$  0.01

$  0.01

$  0.04

$ 0.00

Diluted weighted average shares outstanding

15,531,770

16,031,553

15,840,336

14,754,252

NOTIFY TECHNOLOGY CORPORATION

Condensed Balance Sheets

Sept. 30,

Sept. 30,

2010

2009

Audited

Audited

Assets:

Current assets:

Cash and cash equivalents

$  2,526,654

$  1,565,447

Accounts receivable, net

292,040

810,543

Other assets

44,570

40,540

Total current assets

2,863,264

2,416,530

Non-current assets

Property and equipment, net

306,380

247,117

Lease deposits

15,602

15,602

Total non-current assets

321,982

262,719

Total assets

$ 3,185,246

$  2,679,249

Liabilities and shareholders' deficit

Current liabilities:

Current portion of capital lease obligation

$         3,369

$       4,142

Accounts payable

55,378

75,340

Accrued payroll and related liabilities

405,203

454,946

Deferred revenue

2,927,067

2,995,906

Other accrued liabilities

123,066

140,464

Total current liabilities

3,514,083

3,670,798

Long-term liabilities:

Long-term Deferred revenue

112,696

137,250

Long-term capital lease obligations

3,174

6,543

    Total long-term liabilities

115,870

143,793

Total liabilities

3,629,953

3,814,591

Shareholders' deficit:

Preferred stock

- -

- -

Common stock

14,111

14,076

Additional paid-in capital

23,516,722

23,442,160

Accumulated deficit

(23,975,540)

(24,591,578)

Total shareholders' deficit

(444,707)

(1,135,342)

Total liabilities and shareholders' deficit

$  3,185,246

$  2,679,249

Contacts:

At Notify Technology Corporation:

Jerry Rice, Chief Financial Officer

Phone: 408-777-7927

jerry.rice@notifycorp.com

SOURCE Notify Technology Corporation



RELATED LINKS

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