Notify Technology Reports Results for the Third Fiscal Quarter Ended June 30, 2011

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Jul 29, 2011, 09:30 ET

SAN JOSE, Calif., July 29, 2011 /PRNewswire/ -- Notify Technology Corporation today announced financial results for its third fiscal quarter ended June 30, 2011.

Total fiscal third quarter revenue decreased to $1,643,820 in the three-month period ended June 30, 2011 from $1,837,377 during the same period in the prior year. The net loss for the three month period ended June 30, 2011 was $195,715 or $(0.01) per diluted share. The company's financial performance was down from a net income of $212,506 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 the combined impact of a decline in new customer sales of the NotifyLink product line and the expense of our investment in developing our new mobile device management product line, NotifyMDM.

"Our strategic product emphasis continues to be focused on NotifyMDM our new mobile device management product," said Paul DePond, President and Chief Executive Officer of the company. "We have increased our investment in product development by 44% as compared to last year's expenditure to validate our commitment to achieving a leadership position in the mobile device management market over short term profitability."

Sales and Marketing expenses were $642,613 in the three-month period ended June 30, 2011 compared to $544,314 in the three-month period ended June 30, 2010. The increase was the result of the addition to our outside sales force and by marketing expenditures to support the new product introduction of NotifyMDM.

Research and Development expenses were $798,786 in the three-month period ended June 30, 2011 compared to $605,502 in the three-month period ended June 30, 2010. The increase was due to an increased investment in our design and testing staff to accelerate the completion of NotifyMDM and meet the demands of a rapidly expanding smart phone and tablet market.

General and Administrative expenses decreased to $401,948 in the three-month period ended June 30, 2011 compared to $462,153 for the three-month period ended June 30, 2010. 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 10 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, Symbian Alliance Member, and HP/Palm Select 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.

Contacts:
At Notify Technology Corporation:
Jerry Rice, Chief Financial Officer
Phone: 408-777-7927
[email protected]

(Financial Tables Follow)


NOTIFY TECHNOLOGY CORPORATION CONDENSED STATEMENTS OF INCOME

		Three-Month Period				Nine-Month Period
		Ended June 30,				Ended June 30,
		2011			2010	2011		2010


Revenue:
Product revenue		$ 1,643,820	$ 1,837,377			$ 5,197,071	$ 5,367,871
Total revenue		1,643,820	1,837,377			5,197,071	5,367,871


Cost of revenue:
Product cost		3,549	12,348			20,240	27,131
Royalty payments		978	1,707			4,096	5,103
Total cost of revenue		4,527	14,055			24,336	32,234
Gross profit		1,639,293	1,823,322			5,172,735	5,335,637

Operating expenses:
	Research and development	798,786	605,502			2,283,120	1,579,872
	Sales and marketing	642,613	544,314			1,902,787	1,955,598
	General and administrative	401,948	462,153			1,266,361	1,369,737
Total operating expenses		1,843,347		1,611,969		5,452,268	4,905,207

Income/(loss) from operations		(204,054)	211,353			(279,533)	430,430

Other interest (expense), net		8,339	1,153			12,194	2,832

Net income (loss)		$ (195,715)	$ 212,506			$ (267,339)	$ 433,262

Basic net income (loss) per share		$ (0.01)	$ 0.02			$ (0.02)	$ 0.03

Basic weighted average shares outstanding		14,111,217	14,075,662			14,111,217	14,076,629

Diluted net income (loss) per share		$ (0.01)	$ 0.01			$ (0.02)	$ 0.03

Diluted weighted average shares outstanding		14,111,217	14,849,281			14,111,217	15,949,153


NOTIFY TECHNOLOGY CORPORATION
Condensed Balance Sheets
			June 30,	Sept. 30,
			2011	2010
			Unaudited	Audited
Assets:
Current assets:
		Cash and cash equivalents	$ 2,288,301	$ 2,526,654
		Accounts receivable, net	385,240	292,040
		Other assets	138,019	44,570
Total current assets			2,811,560	2,863,264
	Non-current assets
		Property and equipment, net	291,835	306,380
		Lease deposits	15,602	15,602
	Total non-current assets		307,437	321,982
		Total assets	$ 3,118,997	$ 3,185,246
Liabilities and shareholders' deficit
Current liabilities:
		Current portion of capital lease obligation	$ 3,303	$ 3,369
		Accounts payable	42,567	55,378
		Accrued payroll and related liabilities	477,306	405,203
		Deferred revenue	3,007,666	2,927,067
		Other accrued liabilities	137,136	123,066
Total current liabilities			3,667,978	3,514,083
Long-term liabilities:
		Long-term Deferred revenue	94,281	112,696
		Long-term capital lease obligations	877	3,174
Total long-term liabilities			95,158	115,870
Total liabilities			3,763,136	3,629,953
Shareholders' deficit:
		Preferred stock	- -	- -
		Common stock	14,111	14,111
		Additional paid-in capital	23,584,629	23,516,722
		Accumulated deficit	(24,242,879)	(23,975,540)
Total shareholders' deficit			(644,139)	(444,707)
		Total liabilities and shareholders' deficit	$ 3,118,997	$ 3,185,246