MINDEN, Nev., April 23, 2013 /PRNewswire/ -- Spare Backup, Inc. ("Spare Backup") ("OTC: SPBU"), a provider of data backup and security software for smartphones, tablets and PCs, which is carrier and manufacturer agnostic, announced today its financial results for the fiscal year ended December 31, 2012.
-Fiscal 2012 revenue increased by 35% to $539,000 as software launches begin to roll out
-Fiscal 2012 net loss narrowed to ($3.5 million) or ($0.01) per basic and diluted share, compared to a net loss of ($5.9 million) or ($0.02) per basic and diluted share in fiscal 2011
-Fiscal 2012 net cash used in operating activities decreased by 56% to $1.7 million, compared to net cashed used in operating activities of $3.8 million in fiscal 2011
For the full year of fiscal 2012 total revenues increased to $539,000, an increase of 35% compared to total revenues of $399,000 million recorded in fiscal 2011. Revenues growth in fiscal 2012 was hampered by a delay in several launches with distribution partners due to upgrading our Spare Mobile software to accommodate the breadth of operating systems currently available in the mobile phone market place, and to facilitate new software design applications. For fiscal 2012, we improved our performance in several key areas. While revenues increased modestly, our selling, general and administrative expenses in fiscal 2012 declined by $3.6 million to $3.3 million. Our research and development expenses in fiscal 2012 also declined by 25% to $817,000. These significant declines in our overall operating expenses are attributable to a decrease in equity based compensation to employees and consultants, our outsourcing of customer support and certain development functions as well as savings resulting from our corporate relocation to Nevada which took place late in fiscal 2011 and the termination of our office lease in California in 2012. Our operations resulted in a net loss of ($3.5 million), down from a net loss of ($5.9 million) in fiscal 2011. In fiscal 2012 cash used in operating activities also declined to $1.7 as compared to $3.8 million in fiscal 2011.
While our company's improvement in overall revenue was modest due to delays in customer launches for our software, our cost cutting and streamlining efforts resulted in significant overall improvements in our income and cash flow statements. Both our net loss and cash used in operating activities decreased significantly and we intend to continue to look for ways to reduce overall expenses in fiscal 2013. We believe the major part of our development efforts to support our Spare Mobile launches in Europe and the Middle East are completed and we anticipate an acceleration of marketing launches by our distribution partners in those geographic regions leading to a progressive sequential increase in quarterly revenue throughout fiscal 2013 and into 2014. The Company intends to focus efforts in the coming quarters on accelerating revenue from its current and future distribution partners while continuing overall expense reduction efforts.
Commenting on our results for fiscal 2012, Mr. Cery Perle, Chairman and CEO of Spare Backup, Inc., stated, "Fiscal 2012 was a year of significant change at our company as we made great strides in developing our mobile software capabilities while engaging in extensive streamlining and cost cutting measures. As a result, we believe we have positioned our product offerings to be capable of meeting the needs of our partners and anticipate this will lead to a significant improvement in our revenue in the fiscal 2013 year. Through our cost cutting efforts we have reduced our cash burn rate and we expect this trend to continue throughout 2013. With software launches in key areas expected to begin in earnest in 2013, we believe our company is poised to achieve sustained quarter over quarter revenue growth that will enable us to better align our costs with our revenue throughout the year and into 2014. We are confident that our Mobile product delivers a great value proposition to customers and anticipate our software will be well received as we launch, particularly in the mobile insurance and Telco space. We look forward to a significant improvement in the current year as we work diligently to improve our top and bottom line performance in 2013 and beyond.
About Spare Backup, Inc.
Spare Backup, Inc. is a leading provider of data backup and security software for smartphones, tablets and PCs. Spare Backup's software enables consumers and small to medium sized businesses to easily protect valuable computer and mobile data quickly, automatically and cost-effectively.
Spare Backup software intelligently selects, secures and stores personal and business content on a continuous basis or according to the schedule of the user's choice. It also allows for the integration of that content across various devices and provides enhanced security features to protect valuable data on any lost or stolen devices. Spare Backup software is the first totally automated cloud-based backup service that is distributed on a stand-alone or private label basis through major retail and warranty service partners in North America and Europe.
Safe Harbor Statement
The Private Securities Litigation Reform Act of 1995 provides a safe harbor for forward-looking information made on the company's behalf. All statements, other than statements of historical facts, which address the company's expectations of sources of capital or which express the company's expectation for the future with respect to financial performance or operating strategies can be identified as forward-looking statements. Such statements made by the company are based on knowledge of the environment in which it operates, but because of the possibility of unknown factors, as well as other factors beyond the control of the company, actual results may differ materially from the expectations expressed in the forward-looking statement. An investment in our common stock involves a significant degree of risk. You should not invest in our common stock unless you can afford to lose your entire investment. You should consider carefully all risk factors and other information in our annual report and quarterly filings before deciding to invest in our common stock. If any of the following risks and uncertainties develops into actual events, our business, financial condition or results of operations could be materially adversely affected and you could lose your entire investment in our company.
Forward Looking Statements:
This press release contains forward-looking statements that involve a number of risks and uncertainties, including statements regarding the outlook of the Company's business and results of operations. By nature, these risks and uncertainties could cause actual results to differ materially from those indicated. Generally speaking, any statements using terms such as "will," "expect," "anticipate," or "may," or which otherwise predict or address future results or events, are likely to contain forward-looking statements. It is important to note that actual results may differ materially from what is indicated in any forward-looking statement.
Readers should consider any forward-looking statements in light of factors that could cause actual results to vary. These factors are described in Spare Backups filings with the SEC, and readers should refer to those filings, including Risk Factors described in those filings, in connection with any forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Spare Backup, Inc.
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