Spare Backup Reports Financial Results for Second Quarter of 2011

MINDEN, Nev., Aug. 23, 2011 /PRNewswire/ -- Spare Backup, Inc. ("Spare Backup") (OTCBB: SPBU) today announced its financial results for the second quarter of 2011.

• 2nd Quarter 2011 Revenue Increases by over 300% from 1st Quarter 2011 due to Web Development and Software Customization Fees as well as Test Launch Sales for New Distribution Partners
• Management  Sees a Significant Ramp up in Revenue as Several Distribution Partners Begin Large Scale Deployment of Data Backup and Mobile Security Offerings Across Europe and North America

For the second quarter ended June 30, 2011 we reported revenue of $156,000, more than a 300% sequential increase over the $38,000 in revenue reported in the first quarter of 2011.  The increase in revenue is a result of website development, software customization and test launch sales of our data backup and mobile security software offerings with our European and North American distribution partners. The company reported a net loss of $2.0 million for the second quarter of 2011, a 41% improvement over the $3.5 million loss recorded in the second quarter of 2010 on $227,000 in revenue.  

Revenue for the six month period ending June 30, 2011 was $194,000, a decrease of $584,000 when compared to the same six month period in 2010.  The decrease was attributable to deferred revenue recorded in the 2010 six month period from a contract terminated by management in December of 2009 to pursue relationships with two larger European distribution partners in the mobile device and mobile warrantee space that will be launching large scale offerings in the third and fourth quarters of 2011.  For the six month period ending June 30, 2011 our net loss was $2.1 million compared to $5.9 million in the comparable six month period in 2010.

Management anticipates a substantial ramp in revenue in the second half of 2011 as our distribution partners in Europe and North America begin large scale deployment of our suite of data backup and mobile security products focusing on smart phone and tablet devices.  Our developers have converted our product to support the local language in the Netherlands and are in the process of converting eight additional languages for anticipated launches in Germany, Ireland, Italy, Spain, Poland, Romania, Czech Republic and Turkey. Additionally, as a result of the continued strong adoption rates for smart phones in our target markets coupled with the sharp decline in feature phone usage, management believes it is unlikely that it will consummate its proposed acquisition of Tarsin.  Management will instead focus its resources on its current partnerships to support their substantial deployment efforts.  

Commenting on the quarter Cery Perle, President and CEO of Spare Backup, stated, "We are pleased to begin to scratch the surface of what we believe will be a prolonged period of substantial revenue growth for Spare Backup.  We have substantially reduced our expenses while we worked to develop our unique cloud based platform for an extensive array of data backup and mobile security products.  Additionally, by foregoing short term gains to build cutting edge products along with an extensive distribution network in the mobile retail, internet, warrantee and insurance space, we believe we are poised to experience tremendous growth through the expected launches that our partners have scheduled over the remainder of this year and into 2012.  We are also confident that our discussions with other potential partners will enable us to continue on a strong growth track for the foreseeable future. We believe that as our partners execute and we continue to build on our cloud based products we can quickly achieve positive cash flow from our operations and future profitability."

About Spare Backup, Inc.

Spare Backup, Inc. specializes in helping consumers, small office/home office users and small to mid-sized businesses protect their computer data quickly, automatically and cost-effectively.  The company's flagship Spare Backup product is the first totally automated online backup service that intelligently selects, secures and stores files without any user intervention, automatically backing up documents, email, music, photos and other PC files on a continuous basis or according to the schedule of the user's choice.  

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

CONTACT:  Beverly Jedynak, President, Martin E. Janis & Company, Inc., 312-943-1123, [email protected]

SOURCE Spare Backup, Inc.