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Notify Technology Reports Results for the Fiscal Year Ended September 30, 2000 - Revised

-- Annual Revenues increased 130% over last year--

San Jose, CA, November 1, 2000 -- Notify Technology Corporation (NASDAQ: NTFY), today announced financial results for its fiscal year, which ended September 30, 2000.

Revenues for the twelve month period ended September 30, 2000 rose 130% to $4,220,000 from $1,836,000 reported for the comparable twelve month period of fiscal 1999. The Company’s net loss for the twelve month period ended September 30, 2000 was $3,526,000 or $0.99 loss per share, compared to a loss of $3,123,000, or $1.11 loss per share, reported for the corresponding period of fiscal 1999. The annual results were impacted significantly by inventory write downs taken in September.

Revenues for the fourth quarter of fiscal 2000 decreased 34% to $563,000 from $847,000 reported for the corresponding period of fiscal 1999. The Company’s net loss for the fourth quarter of fiscal 2000 was $1,400,000, with a loss per share of $0.38 compared to a loss of $1,083,000, or $0.34 loss per share during the corresponding period of fiscal 1999. A large component of the fourth fiscal quarter loss was a $540,000 inventory write down related to existing products. The Company believes the general market for its traditional products is weakening and the Company is refocusing much of its efforts into wireline and wireless applications of its Visual Got Mail technology.

"Despite our best revenue year ever, the fourth fiscal quarter sales were down from the same quarter last year." said Paul DePond, Chief Executive Officer, "Viewing our business as a whole, we have recognized the value of shifting our product focus into wireline email notification and wireless email notification market solutions." The Call Manager product line took center stage as it accounted for 78% of the revenue for the fourth fiscal quarter followed by the Centrex Receptionist product, which accounted for 20% of fourth 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 value of shifting product focus. 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.

NOTIFY TECHNOLOGY CORPORATION

Statements of Operations

Three-months

Twelve-months

ended September 30,

ended September 30,

2000

1999

2000

1999

(unaudited)

(unaudited)

Product sales

$ 562,963

$ 847,284

$ 4,219,703

$ 1,836,142

Cost of sales

1,043,261

938,009

3,657,121

1,721,029

Gross profit

(480,298)

(90,725)

562,582

115,113

Operating expenses:
Research & development

401,229

367,931

1,459,911

1,361,792

Sales and marketing

261,353

291,863

1,209,993

837,334

General and administrative

357,470

358,101

1,570,323

1,136,779

Total operating expenses

1,020,052

1,017,895

4,240,227

3,335,905

Loss from operations

(1,500,350)

(1,108,620)

(3,677,645)

(3,220,792)

Other (income) and expense, net

(99,613)

(25,574)

(151,193)

(97,508)

Net loss

$ (1,400,737)

$ (1,083,046)

$ (3,526,452)

$ (3,123,284)

Basic and diluted earning per share

$ (0.38)

$ (0.34)

$ (0.99)

$ (1.11)

Weighted average shares outstanding

3,644,818

3,161,632


3,568,503


2,801,410

 

Notify Technology CORPORATION

Balance Sheets

Sept. 30,

Sept.30

2000

1999

(unaudited)

Assets:

Current assets:
Cash and cash equivalents

$ 1,076,493

$ 2,121,753

Accounts receivable

411,334

677,032

Inventories

502,660

534,467

Other assets

50,686

140,579

Total current assets

2,041,173

3,473,831

Other assets:
Property and equipment, net

276,115

240,024

Prepaid royalty

¾

72,110

Total other assets

276,115

312,134

Total assets

$2,317,288

$ 3,785,965

Liabilities and shareholders’ equity
Current liabilities:
Accounts payable

$ 302,573

$ 419,416

Other accrued liabilities

900,792

529,745

Total current liabilities

1,203,365

949,161

Shareholders' equity:
Common stock

4,887

4,403

Additional paid-in capital

13,842,523

12,039,437

Retained earnings

(12,733,487)

(9,207,036)

Total shareholders’ equity

1,113,923

2,836,804

Total liabilities and shareholders' equity

$ 2,317,288

$ 3,785,965

Financial Contact: Investor Contact:
Jerry Rice, Chief Financial Officer
Notify Technology Corp.
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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