Notify Technology Reports Results for the Fiscal Quarter Ended June 30, 2009

NotifyLink revenue increases by 39% over the same quarter in prior year.

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For Immediate Release

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

San Jose, CA, August 13, 2009 -- Notify Technology Corporation (OTC BB: NTFY) today announced financial results for its third fiscal quarter ended June 30, 2009. Revenue increased 39% to $1,593,805 in the three-month period ended June 30, 2009 from $1,144,800 during the same period in the prior year.  The Company had a net gain for the fiscal quarter ended June 30, 2009 of $120,246 or $0.01 per share, an improvement from a net loss of $83,067, or $0.01 per share, reported for the fiscal quarter ended June 30, 2008. The gain was completely attributable to the 31% growth in revenue to $4,366,636 for the nine-month period ended June 30, 2009, over revenue of $3,331,443 for the nine-month period ended June 30, 2008.

The Company also experienced a 34% gain in cash and cash equivalents at June 30, 2009 as compared to cash and cash equivalents at September 30, 2008.  The Company’s accounts receivables balance increased 18% during that same period and deferred revenue balance at June 30, 2009 was 22% higher than the comparable balance at September 30, 2008.  Management believes that these increases signify that the Company closed new contracts during the first three quarters of fiscal 2009 at a rate faster than old contracts expired, explaining the 31% growth of revenue during the nine-month period ended June 30, 2009 over the nine-month period ended June 30, 2008.Sales and marketing expenses were $567,522 in the three-month period ended June 30, 2009 compared to $472,378 in the three-month period ended June 30, 2008.  The increase was primarily in salary and commission expenses for ongoing business and the launch of the new NotifySync product in January 2009.

The Company expended $469,970 for research and development in the three-month period ended June 30, 2009 compared to $414,788 in the three-month period ended June 30, 2008.  Virtually all the increase is due to personnel increases as the Company invested heavily in expanding the NotifyLink product line and readying the NotifySync product line for launch in January 2009.General and administrative costs also increased to $397,804 in the three-month period ended June 30, 2009 compared to $310,079 for the three-month period ended June 30, 2008.  The increase was largely due to $17,294 in non-cash compensation expense due to option vesting and a $29,912 for legal expenses related to shareholder matters.

“It gives me great pleasure to report the financial results of this quarter to our shareholders as it reflects our transition to achieving greater financial performance.  Not only did we have a profitable quarter, but we also reduced the loss year-to-date to only $33,643.  We are very pleased that our NotifyLink™ revenues have increased quarter to quarter and that this quarter’s results were a 39% increase over the same quarter last year”, said Paul DePond President and CEO of Notify Technology Corporation. “Our NotifyLink products have done well even in a tough economy.  Our ability to support the large number of the new wireless handhelds like the Apple® iPhone™ 3GS or Palm® Pre™ makes our NotifyLink solution very desirable for organizations and enterprises of all sizes.”

 

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, 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.

(Financial Tables Follow)

NOTIFY TECHNOLOGY CORPORATION

CONDENSED STATEMENTS OF OPERATIONS

 

			Three-Month Periods									Nine-Month Periods
			Ended June 30,									Ended June 30,
			2009		2008							2009			2008
Revenue:
Product revenue			$  1,593,805			$ 1,144,800					$ 4,366,636						$ 3,331,443
Total revenue			1,593,805			1,144,800					4,366,636						3,331,443
Cost of revenue:
Product cost			--			2,590					8,620						11,455
Royalty payments			38,925			30,647					109,072						105,284
Total cost of revenue			38,925			33,237					117,692						116,739
Gross profit			1,554,880			1,111,563					4,248,944						3,214,705
Operating expenses:
	Research and development		469,970			414,788					1,449,731						1,186,960
	Sales and marketing		567,522			472,378					1,708,292						1,374,160
	General and administrative		397,804			310,079					1,127,477						956,859
Total operating expenses			1,435,296				1,197,245			4,285,500						3,517,979
Gain (loss) from operations			119,584			(85,682)					(36,556)						(303,274)
Other interest (expense),  net			662			2,615					2,913						6,479
Net gain (loss)			$  120,246			$ (83,067)					$ (33,643)						$ (296,795)
Basic net gain (loss) per share			$  0.01			$  (0.01)					$  (0.00)						$ (0.02)
Basic weighted average shares outstanding			14,075,662			14,075,662					14,075,662						14,046,336
Diluted weighted net gain(loss) per share			$  0.01			$  (0.01)					$  (0.00)						$ (0.02)
Diluted weighted average shares outstanding			14,849,281			14,075,662					14,075,662						14,046,336

 

 

Notify Technology CORPORATION
Condensed Balance Sheets
						June 30,		Sept. 30,
						2009		2008
						Unaudited		Audited
Assets:
Current assets:
		Cash and cash equivalents				$  1,357,105		$  1,010,607
		Accounts receivable, net				599,665		509,735
		Other assets				24,898		39,452
Total current assets						1,981,668		1,559,794
	Non-current assets
		Property and equipment, net				243,332		173,224
		Lease deposits				15,602		--
	Total non-current assets					258,934		173,224
		Total assets				$ 2,240,602		$  1,733,018
Liabilities and shareholders’ deficit
Current liabilities:
		Current portion of capital lease obligation				$         4,753		$       4,445
		Accounts payable				49,887		40,045
		Accrued payroll and related liabilities				331,653		349,292
		Deferred revenue				2,964,465		2,418,235
		Other accrued liabilities				139,740		171,108
Total current liabilities						3,490,498		2,983,125
		Long-term capital lease obligations				7,069		10,685
Total liabilities						3,497,567		2,993,810
Shareholders' deficit:
		Common stock				14,076		14,076
		Additional paid-in capital				23,424,865		23,387,395
		Accumulated deficit				(24,695,906)		(24,662,263)
Total shareholders’ deficit						(1,256,965)		(1,260,792)
		Total liabilities and shareholders' deficit				$  2,240,602		$  1,733,018

 

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