Notify Technology Reports Results for the Fiscal Quarter Ended December 31, 2007
Wireless revenue increases over 20 percent from same quarter in prior fiscal year.
Contacts:
At Notify Technology Corporation:
Jerry Rice, Chief Financial Officer
Phone: 408-777-7927
jerry.rice@notifycorp.com
San Jose, CA, February 14, 2008 -- Notify Technology Corporation (OTC: NTFY) today announced financial results for its fiscal quarter ended December 31, 2007. The NotifyLink software product line increased 21% to $1,074,854 from $882,515 during the same period last year. The gross margin remained consistent at 96.7% and 97.4% for the three month periods ending December 31, 2007 and 2006, respectively. The Company showed a net loss for the fiscal quarter ended December 31, 2007, of $92,701 or a net loss per share of $(0.01), compared to a net loss of $61,027, or a net loss per share of $(0.00), reported for the three month period ended December 31, 2006.
Sales expenses were down at $414,206 in the three month period ended December 31, 2007 compared to $447,323 in the same period of fiscal 2007. Research and Development spending increased to $395,683 in the three month period ended December 31, 2007 compared to $304,068 in the same period of fiscal 2007. The overall increase in engineering expense is a direct result in supporting additional email platforms and new wireless devices. Administrative expenses were $323,356 in the three month period ended December 31, 2007 compared to $304,319 in the same period of fiscal 2007.
“Our wireless product revenue continues to grow steadily year to year while we continue to maintain control over our expenses. Notify has established itself as providing a robust wireless solution to support a variety of email platforms and wireless handheld devices. We continue to increase our investment in research and development as we increase the number of email platforms and wireless devices we support,” said Paul DePond, President of Notify Technology. “We are committed to enhancing our wireless products in order to maintain our market position and continue our revenue growth throughout the coming fiscal year.”
About Notify Technology Corporation
Founded in 1994, Notify Technology Corporation (OTC: NTFY) is an innovative software company developing mobility products for organizations of all sizes. Notify’s wireless solutions provide secure synchronized email and PIM access and management to any size organization on a variety of wireless 2-way devices and networks. Notify sells its wireless products directly and through authorized resellers internationally. The company is headquartered in San Jose, California. For more information, visit http://www.notifycorp.com or contact 408-777-7920.
Forward-Looking Statements: This press release contains forward-looking statements related to Notify Technology that involve risks and uncertainties, including, but not limited to, statements regarding the improving performance and growth of our wireless product. Those statements are based on current information and expectations and there are important factors that could cause actual results to differ materially from those anticipated by such statements. These risks include, but are not limited to, our ability to deliver products and manage growth, our ability to continue to improve our existing products or develop new products or technologies, as well as other risks. In particular, we cannot predict future NotifyLink revenues with any accuracy and do not know whether NotifyLink revenues will continue to grow at the rates we have recently experienced. These forward-looking statements are made in reliance on the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995. For further information about these factors that could affect Notify Technology's future results, please see the Company’s filings with the Securities and Exchange Commission. Prospective investors are cautioned that forward-looking statements are not guarantees of performance. Actual results may differ materially from management’s expectations.
(Financial Tables Follow)
NOTIFY TECHNOLOGY CORPORATION
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Three-Month Periods |
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Ended December 31, |
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2007 |
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2006 |
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(Unaudited) |
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Revenue: |
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Product sales |
$ 1,074,854 |
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$ 882,515 |
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Service revenue |
--- |
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148,931 |
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Total revenue |
1,074,854 |
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1, 031,446 |
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Cost of revenue: |
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Product cost |
5,080 |
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2,350 |
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Royalty payments |
29,070 |
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23,950 |
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Total cost of revenue |
34,150 |
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26,300 |
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Gross profit |
1,040,704 |
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1, 005,146 |
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Operating expenses: |
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Research and development |
395,683 |
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304,068 |
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Sales and marketing |
414,206 |
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447,323 |
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General and administrative |
323,356 |
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304,319 |
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Total operating expenses |
1,133,245 |
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1,055,710 |
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Loss from operations |
(92,541) |
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(50,564) |
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Interest income (expense) and other, net |
4,650 |
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(256) |
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SFAS 123(R) expense |
(4,810) |
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(10,207) |
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Net loss |
$ (92,701) |
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$ (61,027) |
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Basic and diluted net loss per share |
$ (0.01) |
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$ (0.00) |
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Weighted average shares outstanding |
14,017,328 |
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13,968,995 |
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Notify Technology CORPORATION |
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Condensed Balance Sheets |
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Dec. 31, |
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Dec. 31, |
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2007 |
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2006 |
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(Unaudited) |
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(Unaudited) |
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Assets: |
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Current assets: |
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Cash and cash equivalents |
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$ 855,771 |
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$ 684,584 |
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Accounts receivable, net |
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637,441 |
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697,324 |
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Other assets |
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69,264 |
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52,547 |
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Total current assets |
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1,562,476 |
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1,434,455 |
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Non-currant assets |
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Property and equipment, net |
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99,335 |
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96,999 |
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Deposit on property and equipment |
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31,850 |
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--- |
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Total non-current assets |
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131,185 |
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96,999 |
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Total assets |
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$ 1,693,661 |
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$ 1,531,454 |
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Liabilities and shareholders’ deficit |
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Current liabilities: |
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Current portion of capital lease obligation |
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$ 3,846 |
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$ 18,540 |
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Accounts payable |
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45,957 |
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66,651 |
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Accrued payroll and related liabilities |
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220,478 |
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217,493 |
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Deferred revenue |
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2,312,549 |
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1,790,481 |
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Other accrued liabilities |
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162,209 |
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108,372 |
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Total current liabilities |
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2,745,039 |
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2,201,537 |
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Long-term capital lease obligations |
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14,434 |
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4,444 |
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Total liabilities |
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2,759,473 |
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2,205,981 |
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Shareholders' deficit: |
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Common stock |
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14,075 |
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13,969 |
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Additional paid-in capital |
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23,387,395 |
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23,321,110 |
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Accumulated deficit |
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(24,467,282) |
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(24,009,606) |
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Total shareholders’ deficit |
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(1,065,812) |
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(674,527) |
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Total liabilities and shareholders' deficit |
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$ 1,693,661 |
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$ 1,531,454 |
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©2008 Notify Technology Corporation. All Rights Reserved.
