Notify Technology Reports Results for the Second Quarter Ended March 31, 2000
--Revenues increased 500% over the year-ago period--
San Jose, CA, May 4, 2000 -- Notify Technology Corporation (NASDAQ: NTFY), a leading supplier of innovative call and message notification products and services, today announced financial results for its second fiscal quarter, which ended March 31, 2000.
Revenues for the second quarter of fiscal 2000 increased 500% to $1,685,000 from $281,000 reported for the corresponding period of fiscal 1999. The Companys net loss for the second quarter of fiscal 2000 was $694,000, with a loss per share of $0.20, compared to a loss of $594,000, or $0.23 loss per share during the corresponding period of fiscal 1999.
Revenues for the six month period ended March 31, 2000 rose 443% to $2,754,000 from $507,000 reported for the comparable six-month period of fiscal 1999. The Companys net loss for the six month period ended March 31, 2000 was $1,394,000, or $0.40 loss per share, compared to a loss of $1,200,000, or $0.49 loss per share, reported for the corresponding period of fiscal 1999.
"This has been a very good quarter for product sales at Notify Technology," said Paul DePond, Chief Executive Officer. "We have already shipped 50% more year-to-date than we shipped during the entire 1999 fiscal year. The Call Manager product line took center stage as it accounted for 76% of the revenue for the second fiscal quarter followed by the Centrex Receptionist product at 14%.
As announced in our press release on April 28, 2000, we have made substantive progress launching our Visual Got Mail product into the mass market through our relationship with Cincinnati Bell. In addition, many of the trials we announced for our Visual Got Mail technology over the past months are in post-trial evaluation.
Notify will continue to evaluate and research additional product opportunities that would assist the Company in expanding its footprint in the Internet/Telephony integration and wireless markets. Our goal is to continue to diversify both our customer and revenue base and we feel that Visual Got Mail will allow us to do that."
Research & Development spending increased to $341,000 for the second quarter of fiscal 2000, compared to $294,000 for the corresponding period of fiscal 1999. Most of the investment in Research & Development spending relates to the continued development of the Visual Got Mail technology that was first announced in February 1999.
Founded in 1994, Notify Technology Corporation, (NASDAQ: NTFY) is a leading supplier of innovative call and message notification products and services. Notify Technology currently sells its products through OEM relationships to major telephone companies and telephone equipment distributors. The company is headquartered in San Jose, Calif. For more information, see www.notifycorp.com or call 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, the statement above of the belief that our Visual Got Mail technology will allow us to diversify our customer and revenue base. 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, market acceptance of certain products, as well as other risks. 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 Companys 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 expectations.
(Financial Tables Follow)
NOTIFY TECHNOLOGY CORPORATION |
Statements of Operations |
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|
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Three-months |
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Six-months |
|
|
ended March 31, |
|
ended March 31, |
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|
2000 |
|
1999 |
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2000 |
|
1999 |
|
|
(unaudited) |
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|
|
(unaudited) |
|
| Product sales |
$ 1,684,603 |
|
$ 280,510 |
|
$ 2,754,281 |
|
$ 506,854 |
| Cost of sales |
1,287,101 |
|
168,906 |
|
2,022,546 |
|
281,206 |
| Gross profit |
397,502 |
|
111,604 |
|
731,735 |
|
225,648 |
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|
|
|
|
|
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| Operating expenses: |
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|
|
|
|
|
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Research & development |
340,537 |
|
294,011 |
|
719,573 |
|
621,385 |
|
Sales and marketing |
343,601 |
|
170,305 |
|
661,987 |
|
357,294 |
|
General and administrative |
421,407 |
|
258,339 |
|
784,668 |
|
484,627 |
| Total operating expenses |
1,105,545 |
|
722,655 |
|
2,166,228 |
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1,463,306 |
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|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
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| Income (loss) from operations |
(708,043) |
|
(611,051) |
|
(1,434,493) |
|
(1,237,658) |
| Other (income) and expense, net |
(13,592) |
|
(17,132) |
|
(40,193) |
|
(37,908) |
| Net loss |
$ (694,451) |
|
$ (593,919) |
|
$ (1,394,300) |
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$ (1,199,750) |
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|
|
|
|
|
|
|
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| Basic and diluted earning per share |
$ (0.20) |
|
$ (0.23) |
|
$ (0.40) |
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$ (0.49) |
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|
|
|
|
|
|
|
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| Weighted average shares outstanding |
3,553,612 |
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2,586,004 |
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3,492,949 |
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2,440,715 |
Notify Technology CORPORATION
|
Balance Sheet |
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March 31, 2000 |
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(unaudited) |
Assets: |
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| Current assets: |
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Cash and cash equivalents |
|
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$ 2,226,688 |
|
Accounts receivable |
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1,119,594 |
|
Inventories |
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|
693,895 |
|
Other assets |
|
|
50,403 |
| Total current assets |
|
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4,090,580 |
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|
|
|
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| Other assets: |
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|
|
|
Property and equipment, net |
|
|
255,171 |
|
Prepaid royalty |
|
|
42,260 |
| Total other assets |
|
|
297,431 |
|
Total assets |
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|
$ 4,388,011 |
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|
|
|
|
| Liabilities and shareholders' equity |
|
|
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| Current liabilities: |
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|
|
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Accounts payable |
|
|
$ 567,617 |
|
Other accrued liabilities |
|
|
681,471 |
| Total current liabilities |
|
|
1,249,088 |
|
|
|
|
|
| Shareholders' equity: |
|
|
|
|
Common stock |
|
|
4,878 |
|
Additional paid-in capital |
|
|
13,852,069 |
|
Deferred compensation |
|
|
(116,688) |
|
Retained earnings |
|
|
(10,601,336) |
| Total shareholders equity |
|
|
3,138,923 |
|
Total liabilities and shareholders' equity |
|
$ 4,388,011 |
| Business Contact: |
Investor Contact: |
Jerry Rice, Chief Financial Officer
Notify Technology Corp.
Phone: 408-777-7927
jerry_rice@notifycorp.com |
Matthew Hayden
Hayden Communications, Inc
843-272-4653
Matt@HaydenIR.com |
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