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Notify Technology Reports Results for the Fiscal Year Ended September 30, 2012
Submitted by admin on 12/21/2012 @ 11:07 PM
Companies mentioned in this article:
Notify Technology Corporation
SAN JOSE, Calif., Dec. 22, 2012 /PRNewswire/ -- Notify Technology Corporation (Pink Sheets: NTFY.PK) today announced financial results for its fiscal year ended September 30, 2012.
Total fiscal twelve-month revenue decreased 11% to $6,107,445 in the twelve-month period ended September 30, 2012 from $6,833,885 during the same period in the prior year. The net loss for the twelve month period ended September 30, 2012 was $943,644 or $13.38 per diluted share. The company's financial performance dropped from a net loss of $487,768, or $6.91 per diluted share, reported for the same period in the prior year. The decrease in net income for the fiscal year reflects a combination of a reduction in sales of the NotifyLink and NotifySync products and the slower than anticipated growth of the NotifyMDM product line.
"This has been a challenging year for Notify as we have found the mobile device management (MDM) market to be much more competitive than we expected" said David Hanabusa, President and Chief Executive Officer of the company. "We are continually improving our MDM product and have invested heavily in development assets to do so. We have also streamlined our operation where we can without sacrificing product design."
Sales and Marketing expenses were $2,197,826 in the twelve-month period ended September 30, 2012 compared to $2,504,948 in the twelve-month period ended September 30, 2011. Spending was focused on the NotifyMDM product line and marketing of the NotifyLink product line was deemphasized.
Research and Development expenses were $3,124,886 in the twelve-month period ended September 30, 2012 compared to $3,079,921 in the twelve-month period ended September 30, 2011. The increase was due to the investment to expedite the development of the NotifyMDM product line while still maintaining the capability to improve and support the NotifySync and NotifyLink products.
General and Administrative expenses decreased to $1,639,111 in the twelve-month period ended September 30, 2012 compared to $1,722,342 for the twelve-month period ended September 30, 2011. The decrease was primarily due to incurring minimal SEC filing costs and reducing executive compensation.
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 iOS 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 Twelve-Month Periods
Ended September 30, Ended September 30,
2012 2011 2012 2011
---- ---- ---- ----
(unaudited) (audited) (unaudited) (audited)
Revenue:
Product
revenue $1,423,085 $1,636,814 $6,107,445 $6,833,885
Total revenue 1,423,085 1,636,814 6,107,445 6,833,885
--------- --------- --------- ---------
Cost of revenue:
Product cost 34,013 4,449 82,027 24,689
Royalty
payments 7,485 1,195 19,700 5,291
--------
Total cost of revenue 41,498 5,644 101,727 29,980
------ ----- ------- ------
Gross profit 1,381,587 1,631,170 6,005,718 6,803,905
--------- --------- --------- ---------
Operating expenses:
Research and
development 700,046 796,801 3,124,886 3,079,921
Sales and
marketing 375,721 602,161 2,197,826 2,504,948
General and
administrative 439,836 455,981 1,639,111 1,722,342
------------
Total operating expenses 1,515,603 1,854,943 6,961,823 7,307,211
--------- --------- --------- ---------
Income from operations (134,016) (223,773) (956,105) (503,306)
Interest income and other, net 2,152 3,344 12,461 15,538
Net income (loss) before provision for
income taxes (131,864) (220,430) (943,644) (487,768)
Provision for income taxes -- -- -- --
--- --- --- ---
Net income (loss) $(131,864) $(220,430) $(943,644) $(487,768)
--------- --------- --------- ---------
Basic net income (loss) per share $(1.87) $(3.12) $(13.38) $(6.91)
====== ====== ======= ======
Basic weighted average shares outstanding 70,556 70,556 70,556 70,556
====== ====== ====== ======
Diluted weighted net income (loss) per
share $(1.87) $(3.15) $(13.38) $(6.91)
====== ====== ======= ======
Diluted weighted average shares
outstanding 70,556 70,556 70,556 70,556
====== ====== ====== ======
Notify Technology CORPORATION
Condensed Balance Sheets
Sept. 30, Sept. 30,
2012 2011
---- ----
(unaudited) (audited)
Assets:
Current assets:
Cash and
cash
equivalents $902,447 $2,040,580
Accounts
receivable,
net 156,492 271,251
Other assets 110,586 83,235
Total current assets 1,169,525 2,395,066
Non-current
assets
Property and
equipment,
net 192,460 312,272
Lease
deposits 15,602 15,602
Total non-
current assets 208,062 327,874
Total assets $1,377,587 $2,722,940
Liabilities and shareholders' deficit
Current liabilities:
Current
portion of
capital
lease
obligation $2,830 $2,665
Accounts
payable 67,534 65,103
Accrued
payroll and
related
liabilities 330,571 426,151
Deferred
revenue 2,453,860 2,839,051
Other
accrued
liabilities 163,832 128,915
Total current liabilities 3,018,627 3,461,885
Long-term liabilities:
Long-term
Deferred
revenue 63,588 88,142
Long-term
capital
lease
obligations 9,289 12,120
Total long-term liabilities 72,877 100,262
------ -------
Total liabilities 3,091,504 3,562,147
--------- ---------
Shareholders' deficit:
Preferred
stock - - - -
Common stock 71 71
Additional
paid-in
capital 23,692,964 23,624,030
Accumulated
deficit (25,406,952) (24,463,308)
Total shareholders' deficit (1,713,917) (839,207)
----------
Total
liabilities and
shareholders'
deficit $1,377,587 $2,722,940
Contacts:
At Notify Technology Corporation:
Jerry Rice, Chief Financial Officer
Phone: 408-777-7927
jerry.rice@notifycorp.com
SOURCE Notify Technology Corporation