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

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May 16, 2012, 09:30 ET

SAN JOSE, Calif., May 16, 2012 /PRNewswire/ -- Notify Technology Corporation (NTFY.PK) today announced financial results for its second fiscal quarter ended March 31, 2012.

Total fiscal second quarter revenue decreased to $1,624,524 in the three-month period ended March 31, 2012 from $1,712,765 during the same period in the prior year. The net loss for the three month period ended March 31, 2012 was $305,462 or $(4.33) per diluted share. The company's financial performance was down from a net loss of $86,926 or $1.23 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 sales of the NotifyLink product line and the expense of our investment in developing our new mobile device management product line, NotifyMDM.

"We released our NotifyMDM integrated with CommonTime's MSuite product in April 2012 now available to CommonTime's new and current customers around the world as CommonTime MDM," said Paul DePond, President and Chief Executive Officer of the company. "We also took steps to streamline our operations while still maintaining our ability to service our existing customers and continue enhancing our NotifyMDM product."

Sales and Marketing expenses were $665,512 in the three-month period ended March 31, 2012 compared to $591,866 in the three-month period ended March 31, 2011. The increase was the result of additions to our outside sales force and by marketing expenditures to support the new product introduction of NotifyMDM.

Research and Development expenses were $852,109 in the three-month period ended March 31, 2012 compared to $762,783 in the three-month period ended March 31, 2011. The increase was due to an increased investment in our design and testing staff to accelerate the development of our NotifyMDM product and meet the demands of a rapidly expanding smart phone and tablet market.

General and Administrative expenses decreased to $386,745 in the three-month period ended March 31, 2012 compared to $438,376 for the three-month period ended March 31, 2011. 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 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 iPhone Enterprise Development Partner, Android Development Partner, BlackBerry Development Partner, Windows Mobile and Windows Phone Development 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.



(Financial Tables Follow)

NOTIFY TECHNOLOGY CORPORATION
CONDENSED STATEMENTS OF OPERATIONS

		Three-Month Periods			Six-Month Periods
		Ended March 31,			Ended March 31,
		2012	2011		2012	2011


Revenue:
Product revenue		$ 1,624,524		$ 1,712,765	$ 3,231,375		$ 3,553,251
Total revenue		1,624,524		1,712,765	3,231,375		3,553,251


Cost of revenue:
Product cost		24,339		7,615	39,626		16,691
Royalty payments		3,405		1,141	4,170		3,118
Total cost of revenue		27,744		8,756	43,796		19,809
Gross profit		1,596,780		1,704,009	3,187,579		3,533,442

Operating expenses:
	Research and development	852,109		762,783	1,707,702		1,484,333
	Sales and marketing	665,512		591,866	1,407,412		1,260,174
	General and administrative	386,745		438,376	795,904		864,413
Total operating expenses		1,904,366		1,793,025	3,911,018		3,608,920

Income/(loss) from operations		(307,586)		(89,016)	(723,439)		(75,478)

Other interest (expense), net		2,124		2,090	7,216		3,855

Net income (loss)		$ (305,462)		$ (86,926)	$ (716,223)		$ (71,623)

Basic net income (loss) per share		$ (4.33)		$ (1.23)	$ (10.10)		$ (1.02)

Basic weighted average shares outstanding		70,541		70,541	70,541		70,541

Diluted net income (loss) per share		$ (4.33)		$ (1.23)	$ (10.10)		$ (1.02)

Diluted weighted average shares outstanding		70,541		70,541	70,541		70,541



NOTIFY TECHNOLOGY CORPORATION
Condensed Balance Sheets

			Mar. 31,	Sept. 30,
			2012	2011
			Unaudited	Audited
Assets:
Current assets:
		Cash and cash equivalents	$ 1,179,898	$ 2,040,580
		Accounts receivable, net	347,567	271,251
		Other assets	41,701	83,235
Total current assets			1,569,166	2,395,066
	Non-current assets
		Property and equipment, net	254,112	312,272
		Lease deposits	15,602	15,602
	Total non-current assets		269,714	327,874
		Total assets	$ 1,838,880	$ 2,722,940
Liabilities and shareholders' deficit
Current liabilities:
		Current portion of capital lease obligation	$ 2,746	$ 2,665
		Accounts payable	18,081	65,103
		Accrued payroll and related liabilities	408,150	426,151
		Deferred revenue	2,728,360	2,839,051
		Other accrued liabilities	109,142	128,915
Total current liabilities			3,266,479	3,461,885
Long-term liabilities:
		Long-term Deferred revenue	75,865	88,142
		Long-term capital lease obligations	10,726	12,120
Total long-term liabilities			86,591	100,262
Total liabilities			3,353,070	3,562,147
Shareholders' deficit:
		Preferred stock	- -	- -
		Common stock	71	71
		Additional paid-in capital	23,665,271	23,624,030
		Accumulated deficit	(25,179,532)	(24,463,308)
Total shareholders' deficit			(1,514,190)	(839,207)
		Total liabilities and shareholders' deficit	$ 1,838,880	$ 2,722,940