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Notify Press Releases

For Immediate Release

Notify Technology Reports Results for the Fiscal Quarter Ended March 31, 2009

NotifyLink revenue increases by 28% over the same quarter in prior year.


San Jose, CA, May 15, 2009 -- Notify Technology Corporation (OTC BB: NTFY) today announced financial results for its second fiscal quarter ended March 31, 2009. Revenue increased 28% to $1,423,570 in the three-month period ended March 31, 2009 from $1,111,789 during the same period in the prior year.  The Company had a net loss for the fiscal quarter ended March 31, 2009, of $93,238 or $0.01 per share, an improvement from a net loss of $121,028, or $0.01 per share, reported for the fiscal quarter ended March 31, 2008. The Company’s balance sheet also grew stronger during the second fiscal quarter, with a 36% increase in cash and cash equivalents at March 31, 2009 as compared to cash and cash equivalents at September 30, 2008.

The Company’s accounts receivables balance increased 25% during that same period and deferred revenue balance at March 31, 2009 was 26% higher than the comparable balance at September 30, 2008.  Management believes that these increases signify that the Company closed new contracts during the second fiscal quarter ended march 31, 2009 at a rate faster than old contracts expired, reinforcing the growth of revenue during the period.

The cost of sales and marketing was $578,520 in the three-month period ended March 31, 2009 compared to $487,576 in the three-month period ended March 31, 2008.  The increase was primarily in salary and commission expenses for ongoing business and the launch of a new product, NotifySync, in January 2009.

The Company expended $499,846 for research and development in the three-month period ended March 31, 2009 compared to $376,490 in the three-month period ended March 31, 2008.  Virtually all the increase is due to personnel increases as the Company has invested heavily in expanding the NotifyLink product line and readying the NotifySync product line for launch in early 2009.

General and administrative costs also increased to $399,753 in the three-month period ended March 31, 2009 compared to $323,424 for the three-month period ended March 31, 2008.  The increase was largely due to non-cash expenses of $20,175 for compensation expense due to option vesting and a $20,000 increase in bad debt reserve on the balance sheet in response to higher accounts receivable levels resulting from stronger sales.

“We were very pleased that both our domestic and international sales contributed to the 28% increase in our quarterly revenue stream over the same quarter last year”, said Paul DePond President and CEO of Notify Technology Corporation. “We are also very pleased that we were able to maintain our growth curve despite the worldwide economic uncertainty that surrounds us. We believe that our continued investment in the enhancement of our wireless products will not only provide increased value to organizations and businesses all over the world but will provide Notify with incremental revenue growth even in these tough economic times.”

About Notify Technology Corporation
Founded in 1994, Notify Technology Corporation, (OTC BB: 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 Corporation that involve risks and uncertainties, including, but not limited to, statements regarding the changes in asset balances on the balance sheet, the significant of changes in the balance of deferred revenue, increases in international sales, the launch of new wireless devices and product lines and the improving performance of the Company’s wireless products.  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, Notify’s ability to deliver products and manage growth, its ability to continue to improve its existing products or develop new products or technologies, and its ability to maintain revenue growth as well as other risks.

In particular, management cannot predict future NotifyLink revenues with any accuracy and does not know whether NotifyLink revenues will continue to grow at the rates recently experienced, if at all.  Increasing NotifyLink revenues will require, among other things, continued investments in the Company’s sales and marketing organization, and Notify has limited available cash resources to make these investments.  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.

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

 

(Financial Tables Follow)


NOTIFY TECHNOLOGY CORPORATION

CONDENSED STATEMENTS OF OPERATIONS

 

 

Three-Month Periods

Six-Month Periods

 

Ended March 31,

Ended March 31,

 

 

          2009

          2008

 

     2009

      2008

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

   Product revenue

 $  1,423,570

 

 $ 1,111,789

 

 $ 2,772,831

 

 $ 2,186,643

Total revenue

1,423,570

 

1,111,789

 

2,772,831

 

2,186,643

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

   Product cost

3,360

 

3,785

 

8,620

 

8,865

   Royalty payments

35,959

 

45,566

 

70,147

 

74,637

Total cost of revenue

     39,319

 

49,351

 

    78,767

 

    83,502

Gross profit

     1,384,251

 

1,062,438

 

    2,694,064

 

    2,103,141

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

     499,846

 

     376,490

 

     979,761

 

     772,172

 

Sales and marketing

     578,520

 

     487,576

 

    1,140,770

 

    901,782

 

General and administrative

399,753

 

     323,424

 

729,673

 

646,780

Total operating expenses

1,478,119

 

1,187,490

 

2,850,204

 

2,320,734

 

 

 

 

 

 

 

 

 

 

Loss from operations

     (93,868)

 

    (125,052)

 

  (156,140)

 

(217,593)

 

 

 

 

 

 

 

 

 

Other interest (expense),  net

630

 

           4,024

 

2,251

 

         ,864

 

 

 

 

 

 

 

 

 

Net loss

 $  (93,238)

 

 $ (121,028)

 

$ (153,889)

 

$ (213,729)

 

 

 

 

 

 

 

 

 

Basic net loss per share

 $  (0.01)  

 

 $  (0.01)  

 

 $  (0.01)  

 

$ (0.02)

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding


14,075,662

 


14,075,662

 


14,075,662

 


14,046,336

 

 

 

 

 

 

 

 

 


 

Notify Technology Corporation

 

Condensed Balance Sheets

 

 

 

 

 

 

March 31,

 

Sept. 30,

 

 

 

 

 

2009

 

2008

 

 

 

 

 

Unaudited

 

Audited

 

Assets:

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$  1,379,080

 

$  1,010,607

 

 

Accounts receivable, net

 

 

632,908

 

509,735

 

 

Other assets

 

 

43,816

 

39,452

 

Total current assets

 

 

2,055,804

 

    1,559,794

 

 

Property and equipment, net

 

 

205,859

 

173,224

 

 

Total assets

 

 

$ 2,261,663

 

 $  1,733,018

 

Liabilities and shareholders’ deficit

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Current portion of capital lease obligation

 

 

 $          4,011

 

 $       4,445

 

 

Accounts payable

 

 

34,615

 

40,045

 

 

Accrued payroll and related liabilities

 

 

412,578

 

349,292

 

 

Deferred revenue

 

 

3,050,206

 

2,418,235

 

 

Other accrued liabilities

 

 

145,827

 

171,108

 

Total current liabilities

 

 

3,647,237

 

2,983,125

 

 

Long-term capital lease obligations

 

 

8,932

 

10,685

 

Total liabilities

 

 

3,656,169

 

2,993,810

 

Shareholders' deficit:

 

 

 

 

 

 

 

Common stock

 

 

14,076

 

14,076

 

 

Additional paid-in capital

 

 

23,407,570

 

23,387,395

 

 

Accumulated deficit

 

 

(24,816,152)

 

(24,662,263)

 

Total shareholders’ deficit

 

 

(1,394,506)

 

(1,260,792)

 

 

Total liabilities and shareholders' deficit

 

$  2,261,663

 

 $  1,733,018

 

 

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Copyright 2009 - Notify Technology Corporation.