Notify Technology Reports Results for the Third Fiscal Quarter Ended June 30, 2000
--YTD Revenues increased 270% over the year-ago period--
San Jose, CA, August 3, 2000 -- Notify Technology Corporation (NASDAQ: NTFY), a supplier of innovative call and message notification products and services, today announced financial results for its third fiscal quarter, which ended June 30, 2000.
Revenues for the third quarter of fiscal 2000 increased 87% to $902,000 from $482,000 reported for the corresponding period of fiscal 1999. The Companys net loss for the third quarter of fiscal 2000 was $731,000, with a loss per share of $0.20, compared to a loss of $840,000, or $0.27 loss per share during the corresponding period of fiscal 1999.
Revenues for the nine month period ended June 30, 2000 rose 270% to $3,657,000 from $989,000 reported for the comparable nine month period of fiscal 1999. The Companys net loss for the nine-month period ended June 30, 2000 was $2,126,000, or $0.60 loss per share, compared to a loss of $2,040,000, or $0.76 loss per share, reported for the corresponding period of fiscal 1999.
"Although our sales were much stronger than last year, the third fiscal quarter was down from our fiscal second quarter." said Paul DePond, Chief Executive Officer. "This fluctuation is characteristic of our business but we expect to have our best revenue year ever and have already doubled last years sales." The Call Manager product line took center stage as it accounted for 62% of the revenue for the third fiscal quarter followed by the Centrex Receptionist product, which accounted for 23% of third fiscal quarter revenue.
Founded in 1994, Notify Technology Corp, (NASDAQ: NTFY) is an innovative Communications Application Service Provider of wireless and wireline messaging services. Notify Technology currently sells its products through OEM relationships with major telephone companies, telephone equipment distributors, Internet service providers and wireless service providers. 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 regarding expected revenue levels. 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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Nine-months |
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|
ended June 30, |
|
ended June 30, |
|
|
2000 |
|
1999 |
|
2000 |
|
1999 |
|
|
(unaudited) |
|
|
|
(unaudited) |
|
| Product sales |
$ 902,461 |
|
$ 482,004 |
|
$ 3,656,742 |
|
$ 988,858 |
| Cost of sales |
591,315 |
|
501,814 |
|
2,613,861 |
|
783,020 |
| Gross profit |
311,146 |
|
(19,810) |
|
1,042,881 |
|
205,838 |
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|
|
|
|
|
|
|
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| Operating expenses: |
|
|
|
|
|
|
|
|
Research & development |
339,110 |
|
372,476 |
|
1,058,683 |
|
993,861 |
|
Sales and marketing |
286,654 |
|
188,177 |
|
948,641 |
|
545,471 |
|
General and administrative |
428,184 |
|
294,051 |
|
1,212,852 |
|
778,678 |
| Total operating expenses |
1,053,948 |
|
854,704 |
|
3,220,176 |
|
2,318,010 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Income (loss) from operations |
(742,802) |
|
(874,514) |
|
(2,177,295) |
|
(2,112,172) |
| Other (income) and expense, net |
(11,387) |
|
(34,028) |
|
(51,580) |
|
(71,934) |
| Net loss |
$ (731,415) |
|
$ (840,486) |
|
$ (2,125,715) |
|
$ (2,040,238) |
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|
|
|
|
|
|
|
|
| Basic and diluted earning per share |
$ (0.20) |
|
$ (0.27) |
|
$ (0.60) |
|
$ (0.76) |
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|
|
|
|
|
|
|
|
| Weighted average shares outstanding |
3,652,714 |
|
3,158,756 |
|
3,546,010
|
|
2,699,465
|
Notify Technology CORPORATION |
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Balance Sheets |
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June 30, |
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Sept.30 |
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|
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|
|
2000 |
|
1999 |
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|
|
|
|
(unaudited) |
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|
|
Assets: |
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|
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| Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
$ 1,996,892 |
|
$ 2,121,753 |
|
|
Accounts receivable |
|
|
261,444 |
|
677,032 |
|
|
Inventories |
|
|
624,209 |
|
534,467 |
|
|
Other assets |
|
|
32,672 |
|
140,579 |
|
| Total current assets |
|
|
2,915,217 |
|
3,473,831 |
|
|
|
|
|
|
|
|
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| Other assets: |
|
|
|
|
|
|
|
Property and equipment, net |
|
|
262,338 |
|
240,024 |
|
|
Prepaid royalty |
|
|
56,877 |
|
72,110 |
|
| Total other assets |
|
|
319,215 |
|
312,134 |
|
|
Total assets |
|
|
$ 3,234,432 |
|
$ 3,785,965 |
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|
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|
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| Liabilities and shareholders equity |
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|
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| Current liabilities: |
|
|
|
|
|
|
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Accounts payable |
|
|
$ 192,578 |
|
$ 419,416 |
|
|
Other accrued liabilities |
|
|
606,000 |
|
529,745 |
|
| Total current liabilities |
|
|
798,578 |
|
949,161 |
|
|
|
|
|
|
|
|
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| Shareholders' equity: |
|
|
|
|
|
|
|
Common stock |
|
|
4,885 |
|
4,403 |
|
|
Additional paid-in capital |
|
|
13,763,720 |
|
12,039,437 |
|
|
Retained earnings |
|
|
(11,332,751) |
|
(9,207,036) |
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| Total shareholders equity |
|
|
2,435,854 |
|
2,836,804 |
|
|
Total liabilities and shareholders' equity |
|
$ 3,234,432 |
|
$ 3,785,965 |
|
| 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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