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Notify Technology Reports Results for the Third Fiscal Quarter Ended June 30, 2011

San Jose, CA, July 29, 2011 -- Notify Technology Corporation today announced financial results for its third fiscal quarter ended June 30, 2011. Total fiscal third quarter revenue decreased to $1,643,820 in the three-month period ended June 30, 2011 from $1,837,377 during the same period in the prior year.  The net loss for the three month period ended June 30, 2011 was $195,715 or $(0.01) per diluted share. The company’s financial performance was down from a net income of $212,506 or $0.01 per diluted share, reported for the same period in the prior year. The decrease in net income for the fiscal quarter reflects the combined impact of a decline in new customer sales of the NotifyLink product line and the expense of our investment in developing our new mobile device management product line, NotifyMDM. 

“Our strategic product emphasis continues to be focused on NotifyMDM our new mobile device management product,” said Paul DePond, President and Chief Executive Officer of the company. “We have increased our investment in product development by 44% as compared to last year’s expenditure to validate our commitment to achieving a leadership position in the mobile device management market over short term profitability.” Sales and Marketing expenses were $642,613 in the three-month period ended June 30, 2011 compared to $544,314 in the three-month period ended June 30, 2010.  The increase was the result of the addition to our outside sales force and by marketing expenditures to support the new product introduction of NotifyMDM.

Research and Development expenses were $798,786 in the three-month period ended June 30, 2011 compared to $605,502 in the three-month period ended June 30, 2010.  The increase was due to an increased investment in our design and testing staff to accelerate the completion of NotifyMDM and meet the demands of a rapidly expanding smart phone and tablet market.  General and Administrative expenses decreased to $401,948 in the three-month period ended June 30, 2011 compared to $462,153 for the three-month period ended June 30, 2010.  The decrease was in compensation and legal expense.

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 10 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 iPhone Enterprise Development Partner, Android Development Partner, BlackBerry Development Partner, Windows Mobile and Windows Phone Development Partner, Symbian Alliance Member, and HP/Palm Select 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 INCOME

Three-Month Period Nine-Month Period
Ended June 30, Ended June 30,
2011 2010   2011 2010
       
Revenue:
   Product revenue $1,643,820 $1,837,377 $5,197,071 $5,367,871
Total revenue 1,643,820 1,837,377 5,197,071 5,367,871
     
Cost of revenue:
   Product cost 3,549 12,348 20,240 27,131
   Royalty payments 978 1,707 4,096 5,103
Total cost of revenue 4,527 14,055 24,336 32,234
Gross profit  1,639,293 1,823,322 5,172,735 5,335,637
     
Operating expenses:
Research and development 798,786 605,502 2,283,120 1,579,872
Sales and marketing 642,613 544,314 1,902,787 1,955,598
General and administrative 401,948 462,153 1,266,361 1,369,737
Total operating expenses 1,843,347 1,611,969   5,452,268 4,905,207
 
Income/(loss) from operations -204,054 211,353 -279,533 430,430
Other interest (expense),  net 8,339 1,153 12,194 2,832
       
Net income (loss) ($195,715) $212,506 ($267,339) $433,262
     
Basic net income (loss) per share ($0.01) $0.02 ($0.02) $0.03
     
Basic weighted average shares outstanding
14,111,217 14,075,662 14,111,217 14,076,629
     
Diluted net income (loss) per share ($0.01) $0.01 ($0.02) $0.03
     
Diluted weighted average shares outstanding 14,111,217 14,849,281 14,111,217 15,949,153

 

Notify Technology Corporation
Condensed Balance Sheets
June 30, Sept. 30,
2011 2010
Unaudited Audited
Assets:
Current assets:
Cash and cash equivalents $2,288,301 $2,526,654
Accounts receivable, net 385,240 292,040
Other assets 138,019 44,570
Total current assets 2,811,560 2,863,264
Non-current assets
Property and equipment, net 291,835 306,380
Lease deposits 15,602 15,602
Total non-current assets 307,437 321,982
Total assets $3,118,997 $3,185,246
Liabilities and shareholders’ deficit 
Current liabilities:
Current portion of capital lease obligation $3,303 $3,369
Accounts payable 42,567 55,378
Accrued payroll and related liabilities 477,306 405,203
Deferred revenue 3,007,666 2,927,067
Other accrued liabilities 137,136 123,066
Total current liabilities 3,667,978 3,514,083
Long-term liabilities:    
Long-term Deferred revenue 94,281 112,696
Long-term capital lease obligations 877 3,174
     Total long-term liabilities 95,158 115,870
Total liabilities 3,763,136 3,629,953
Shareholders' deficit:
Preferred stock - - - -
Common stock 14,111 14,111
Additional paid-in capital 23,584,629 23,516,722
Accumulated deficit -24,242,879 -23,975,540
Total shareholders’ deficit -644,139 -444,707
Total liabilities and shareholders' deficit  $3,118,997 $3,185,246

Contacts:
At Notify Technology Corporation:                                      
Jerry Rice, Chief Financial Officer                            
Phone: 408-777-7927                                                 

jerry.rice@notifycorp.com

 

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