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NotifyLink Press Releases

For Immediate Release

Notify Technology Reports Results for the Fiscal Quarter Ended June 30, 2007
Wireless product revenue increases by twenty-five percent from same quarter in prior year

San Jose, CA, August 20, 2007 -- Notify Technology Corporation (OTC: NTFY) today announced financial results for its fiscal quarter ended June 30, 2007. The NotifyLink software product line increased 25% to $937,607 in the three month period ended June 30, 2007 from $745,606 during the same period last year.  The increase in revenue for the NotifyLink product line largely offset the loss of the Visual Got Mail Solution service revenue contained in the total revenues for the three-month period ended June 30, 2006.  The Visual Got Mail Solution service was terminated on February 28, 2007 as the result of our customer merging with another entity.

The Company showed a net loss for the fiscal quarter ended June 30, 2007, of $93,766 or a net loss per share of $(0.01), compared to a net loss of $138,370, or a net loss per share of $(0.01), reported for the three month period ended June 30, 2006.   Operating costs were $1,000,579 in the three-month period ended June 30, 2007 compared to $988,590 in the same period last year due to increases in personnel in Research and Development to meet the demand to support new devices and a larger product offering.  New wireless devices continue to be released into the mobility market and Notify has scaled up its engineering investment to service them. In addition, the NotifyLink Enterprise solution interfaces with over eleven (11) different email collaboration suites providing users with mobile access to their email, calendar, contacts, and task information. NotifyLink revenue grew to $2,720,694 in the nine month period ended June 30, 2007 compared to $2,021,125 in the nine month period ended June 30, 2006.

“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. “The revenue from our wireless products continues to improve quarter to quarter and replace our legacy wireline business.  The strategy of supporting of multiple email collaboration suites with our NotifyLink Enterprise products is a key factor to the quarter to quarter growth we have been able to achieve.”

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 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

Nine-Month Periods

 

Ended June 30,

Ended June 30,

 

 

         2007

          2006

 

     2007

      2006

 

 

 

 

 

 

 

 

 

 

 

Revenue:

 

 

 

 

 

 

   Product revenue

 $ 937,607

 

 $ 745,606

 

 $2,720,694

 

 $ ,707,495

   Service revenue

--

 

191,909

 

237,991

 

637,784

Total revenue

937,607

 

937,515

 

2,958,685

 

3,345,279

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of revenue:

 

 

 

 

 

 

 

   Product cost

5,371

 

2,420

 

13,677

 

459,816

   Service cost

--

 

--

 

--

 

15,375

   Royalty payments

25,543

 

20,855

 

75,656

 

56,753

Total cost of revenue

     30,914

 

23,275

 

    89,333

 

    531,944

Gross profit

     906,693

 

914,240

 

    2,869,352

 

    2,813,335

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

Research and development

     328,035

 

     250,589

 

     945,062

 

     713,035

 

Sales and marketing

     369,618

 

     403,320

 

    1,247,004

 

    1,221,606

 

General and administrative

302,926

 

334,681

 

977,692

 

    970,746

Total operating expenses

1,100,579

 

988,590

 

3,169,758

 

2,905,387

 

 

 

 

 

 

 

 

 

Loss from operations

     (93,886)

 

    (74,350)

 

  (300,406)

 

(92,052)

 

 

 

 

 

 

 

 

 

Other interest (expense),  net

120

 

(1,353)

 

2,677

 

1,537

Proceeds from sale of patents

--

 

250,000

 

--

 

250,000

Loss on fair value of warrants

      --

 

(312,667)

 

    --

 

(457,919)

 

 

 

 

 

 

 

 

 

Net loss

 $  (93,766)

 

 $ (138,370)

 

$ (297,729)

 

$ (298,434)

 

 

 

 

 

 

 

 

 

Basic net loss per share

 $  (0.01)  

 

 $  (0.01)  

 

 $  (0.02)  

 

$ (0.2)

 

 

 

 

 

 

 

 

 

Basic weighted average shares outstanding


13,968,995

 


13,968,995

 


13,968,995

 


13,968,995

 

 

 

 

 

 

 

 


 

Notify Technology CORPORATION

 

Condensed Balance Sheets

 

 

 

 

 

June 30,

 

Sept. 30,

 

 

 

 

 

2007

 

2006

 

 

 

 

 

(Unaudited)

 

(Audited)

 

Assets:

 

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

 

Cash and cash equivalents

 

 

$    877,488

 

$  829,406

 

 

Accounts receivable, net

 

 

420,623

 

436,509

 

 

Other assets

 

 

44,254

 

53,135

 

Total current assets

 

 

1,342,365

 

1,319,050

 

 

Property and equipment, net

 

 

96,644

 

99,623

 

 

Total assets

 

 

$ 1,439,009

 

 $  1,418,673

 

Liabilities and shareholders’ deficit

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

 

Current portion of capital lease obligation

 

 

$     10,705

 

$     18,219

 

 

Accounts payable

 

 

43,660

 

37,722

 

 

Accrued payroll and related liabilities

 

 

188,074

 

231,200

 

 

Deferred revenue

 

 

1,969,259

 

1,623,606

 

 

Other accrued liabilities

 

 

116,273

 

122,432

 

Total current liabilities

 

 

2,327,971

 

2,033,179

 

 

Long-term capital lease obligations

 

 

3,171

 

9,201

 

Total liabilities

 

 

2,331,142

 

2,042,380

 

Shareholders' deficit:

 

 

 

 

 

 

 

Common stock

 

 

13,969

 

13,969

 

 

Additional paid-in capital

 

 

23,340,206

 

23,310,903

 

 

Accumulated deficit

 

 

(24,246,308)

 

(23,948,579)

 

Total shareholders’ deficit

 

 

(892,133)

 

(623,707)

 

 

Total liabilities and shareholders' deficit

 

$  1,439,009

 

 $  1,418,673

 

 

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

 

 

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