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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 Company’s 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 Company’s 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 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 expectations.

(Financial Tables Follow) 

NOTIFY TECHNOLOGY CORPORATION

Statements of Operations

Three-months

Six-months

ended March 31,

ended March 31,

2000

   1999

2000

     1999

(unaudited)

(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

Operating expenses:
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

1,463,306

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)

$ (1,199,750)

Basic and diluted earning per share $ (0.20) $ (0.23) $ (0.40) $ (0.49)
Weighted average shares outstanding

3,553,612

2,586,004

3,492,949

2,440,715


Notify Technology CORPORATION

Balance Sheet

March 31, 2000
(unaudited)

Assets:

Current assets:
Cash and cash equivalents

$ 2,226,688

Accounts receivable

1,119,594

Inventories

693,895

Other assets

50,403

Total current assets

4,090,580

Other assets:
Property and equipment, net

255,171

Prepaid royalty

42,260

Total other assets

297,431

Total assets

$ 4,388,011

Liabilities and shareholders' equity
Current liabilities:
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




©2004 Notify Technology Corporation. All Rights Reserved.

 

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