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NotifyLink Press Releases

Notify Technology Reports Results for the Fiscal Quarter Ended March 31, 2007

Wireless product revenue increases by thirty-four percent from same quarter in prior year


For Immediate Release

Contacts:
At Notify Technology Corporation:                                          
Jerry Rice, Chief Financial Officer                                
Phone: 408-777-7927                                                 
jerry.rice@notifycorp.com     

San Jose, CA, May15, 2007 -- Notify Technology Corporation (OTC: NTFY) today announced financial results for its fiscal quarter ended March 31, 2007. The Company showed a net loss for the fiscal quarter ended March 31, 2007, of $142,936 or a net loss per share of $(0.01), compared to a net loss of $276,080, or a net loss per share of $(0.02), reported for the three month period ended March 31, 2006.

The NotifyLink wireless software product line increased 34% to $900,572 in the three month period ended March 31, 2007 from $670,789 during the same period last year.  The total revenues for the three-month period ended March 31, 2007 still contained revenue from the service portion of the Visual Got Mail Solution product line and was $89,060 in the three-month period ended March 31, 2007 compared to $211,023 in the same period in the prior year. The Visual Got Mail Solution service was terminated on February 28, 2007 as the result of our customer merging with another entity.

New wireless devices continue to be released in the mobility market and Notify has scaled up its engineering investment to service them. In addition, the NotifyLink Enterprise solution interfaces with over ten (10) different email collaboration suites providing users with mobile access to their email, calendar, contacts, and task information. NotifyLink revenue grew to $1,783,087 in the six month period ended March 31, 2007 compared to $1,280,811 in the six month period ended March 31, 2006.

“The Visual Got Mail Solution product line served us well over the last few years but the real business of Notify is our NotifyLink Enterprise product.  The growth in our wireless product revenue this year continues to indicate that Notify’s wireless products are meeting success in the market,” said Paul DePond, President of Notify Technology. “We will continue to increase the number of email collaboration suites that we support with our NotifyLink Enterprise solution throughout the coming 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 408-777-7930.
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 products and the service revenue on the Visual Got Mail Solution.  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, the continuance of certain customer voice mail programs, the expectation that the revenue from the service portion of the Visual Got Mail Solution will decline due to customer decisions to withdraw from the consumer market that the Notify product supports, the acceptance of our wireline products in the market, 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.  Increasing NotifyLink revenues will require, among other things, continued investments in our sales and marketing organization, and we have limited available cash resources to make these investments.  In addition, although we have amended outstanding warrants to address a penalty provision that triggered adverse accounting treatment, we have outstanding certain unit options that contain a similar provision that has not been amended and that could result in adverse accounting charges in future periods in the event of increases in our stock price.  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

CONDENSED UNAUDITED STATEMENTS OF OPERATIONS

 

 

Three-Month Periods

Six-Month Periods

 

Ended March 31,

Ended March 31,

 

 

          2007

          2006

 

     2007

      2006

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

   Product revenue

 $   900,572

 

 $ 675,783

 

 $ 1,783,087

 

 $ 1,961,890

   Service revenue

89,060

 

211,023

 

237,991

 

445,874

Total revenue

989,632

 

886,806

 

2,021,078

 

2,407,764

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

   Product cost

5,956

 

2,731

 

8,306

 

457,396

   Service cost

--

 

7,277

 

--

 

15,375

   Royalty payments

26,163

 

18,653

 

50,113

 

35,898

Total cost of revenue

     32,119

 

28,661

 

    58,419

 

    508,669

Gross profit

     957,513

 

858,145

 

    1,962,659

 

    1,899,095

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

     312,959

 

     228,068

 

     617,027

 

     462,446

 

Sales and marketing

     430,063

 

     438,093

 

    877,386

 

    818,286

 

General and administrative

360,240

 

324,786

 

674,766

 

    636,065

Total operating expenses

1,103,262

 

990,947

 

2,169,179

 

1,916,797

 

 

 

 

 

 

 

 

 

Loss from operations

     (145,749)

 

    (132,802)

 

  (206,520)

 

(17,702)

 

 

 

 

 

 

 

 

 

Other interest (expense),  net

2,813

 

1,974

 

2,557

 

2,890

Loss on fair value of warrants

      --

 

(145,252)

 

    --

 

(145,262)

 

 

 

 

 

 

 

 

 

Net loss

 $  (142,936)

 

 $ (276,080)

 

$ (203,963)

 

$ (160,064)

 

 

 

 

 

 

 

 

 

Basic net loss per share

 $  (0.01)  

 

 $  (0.02)  

 

 $  (0.01)  

 

$ (0.01)

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding


13,968,995

 


13,968,995

 


13,968,995

 


13,968,995

 

 

 

 

 

 

 

 


 

Notify Technology CORPORATION

 

Condensed Balance Sheets

 

 

 

 

 

March 31,

 

Sept. 30,

 

 

 

 

 

2007

 

2006

 

 

 

 

 

(Unaudited)

 

(Audited)

 

Assets:

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$  1,005,291

 

$  829,406

 

 

Accounts receivable, net

 

 

369,904

 

436,509

 

 

Other assets

 

 

61,661

 

53,135

 

Total current assets

 

 

1,436,856

 

1,319,050

 

 

Property and equipment, net

 

 

98,039

 

99,623

 

 

Total assets

 

 

$ 1,534,895

 

 $  1,418,673

 

Liabilities and shareholders’ deficit

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Current portion of capital lease obligation

 

 

$     14,916

 

$     18,219

 

 

Accounts payable

 

 

53,812

 

37,722

 

 

Accrued payroll and related liabilities

 

 

247,597

 

231,200

 

 

Deferred revenue

 

 

1,886,448

 

1,623,606

 

 

Other accrued liabilities

 

 

136,260

 

122,432

 

Total current liabilities

 

 

2,339,033

 

2,033,179

 

 

Long-term capital lease obligations

 

 

3,553

 

9,201

 

Total liabilities

 

 

2,342,586

 

2,042,380

 

Shareholders' deficit:

 

 

 

 

 

 

 

Common stock

 

 

13,969

 

13,969

 

 

Additional paid-in capital

 

 

23,330,882

 

23,310,903

 

 

Accumulated deficit

 

 

(24,152,542)

 

(23,948,579)

 

Total shareholders’ deficit

 

 

(807,691)

 

(623,707)

 

 

Total liabilities and shareholders' deficit

 

$  1,534,895

 

 $  1,418,673

 

 


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