Notify Technologies (fka NTFY)

[10 bagger]

NTFY.. $0.42

Notify Technology Reports Results for the Fiscal Quarter Ended March 31, 2010

PR Newswire - May 13 at 09:30

Company Symbols: NASDAQ-OTCBB:NTFY

NotifyLink revenue increases by 21% over the same quarter in prior year.


SAN JOSE, Calif., May 13 /PRNewswire-FirstCall/ -- Notify Technology Corporation (OTC Bulletin Board: NTFY) today announced financial results for its second fiscal quarter ended March 31, 2010.

Total fiscal second quarter revenue increased 21% to $1,733,849 in the three-month period ended March 31, 2010 from $1,423,570 during the same period in the prior year. The net income for the three month period ended March 31, 2010 was $89,103 or $0.01 per diluted share. The company&;s financial performance is a clear improvement from a net loss of $93,238, or $(0.01) per diluted share, reported for the same period in the prior year.

The revenue for the first half of the fiscal year increased 27% to $3,530,494 in the six-month period ended March 31, 2010 from $2,772,831 during the same period in the prior year. The net income for the six month period ended March 31, 2010 was $220,756 or $0.01 per diluted share. The company&;s six-month financial performance is a significant improvement from a net loss of $153,889, or $(0.01) per diluted share, reported for the same period in the prior year.

&;Notify continues to set new levels of quarterly financial performance. Not only have we achieved our fourth consecutive profitable quarter, but in September 2009 we also recorded our first profitable year,&; said Paul DePond, President and Chief Executive Officer of the company. &;The wireless smart phone market has shown unprecedented growth and new devices are entering the market at an astounding rate. A good example of the market&;s momentum is our latest NotifyLink supported device, the new Apple® iPad®, which seems to have created an exciting new option for those users wanting a tablet device.&;

The Company&;s balance sheet also grew stronger during the second fiscal quarter, with a 57% increase in cash and cash equivalents at March 31, 2010 as compared to cash and cash equivalents at September 30, 2009. Management believes that this increase signifies that the Company closed new contracts during the six-month period ended March 31, 2010 at a rate faster than old contracts expired, reinforcing the growth of revenue during the period.

The cost of sales and marketing was $695,294 in the three-month period ended March 31, 2010, compared to $578,520 in the three-month period ended March 31, 2009. The increase was primarily in salary and commission expenses for ongoing business.

The Company expended $520,520 for research and development in the three-month period ended March 31, 2010, compared to $499,846 in the three-month period ended March 31, 2009. Virtually all the increase is due to increasing personnel as the Company responds to the proliferation of new devices in the market.

General and administrative costs also increased to $422,400 in the three-month period ended March 31, 2010, compared to $399,753 for the three-month period ended March 31, 2009. The increase was largely due to non-cash expenses of $17,066 for compensation expense due to option vesting.

About Notify Technology Corporation

Founded in 1994, Notify Technology Corporation, (OTC BB: NTFY.OB) 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. 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 Corporation that involve risks and uncertainties, including, but not limited to, statements regarding the changes in asset balances on the balance sheet, the significance of changes in the balance of deferred revenue, the launch of new wireless devices and product lines and the improving performance of the Company&;s wireless products. 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, Notify&;s ability to deliver products and manage growth, its ability to continue to improve its existing products or develop new products or technologies, and its ability to maintain revenue growth as well as other risks. In particular, management cannot predict future NotifyLink and NotifySync revenues with any accuracy and does not know whether NotifyLink and NotifySync revenues will continue to grow at the rates recently experienced, if at all. Increasing NotifyLink and NotifySync revenues will require, among other things, continued investments in the Company&;s sales and marketing organization and Notify has limited available cash resources to make these investments. 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 STATEMENTS OF OPERATIONS





Three-Month Periods Six-Month Periods

Ended March 31, Ended March 31,

2010 2009 2010 2009



Revenue:

Product revenue $ 1,733,849 $ 1,423,570 $ 3,530,494 $ 2,772,831

Total revenue 1,733,849 1,423,570 3,530,494 2,772,831





Cost of revenue:

Product cost 5,719 3,360 14,783 8,620

Royalty payments 1,405 35,959 3,395 70,147

Total cost of revenue 7,124 39,919 18,178 78,767

Gross profit 1,726,725 1,384,251 3,512,315 2,694,064



Operating expenses:

Research and development 520,520 499,846 974,370 979,761

Sales and marketing 695,294 578,520 1,411,284 1,140,770

General and
administrative 422,400 399,753 907,584 729,673

Total operating expenses 1,638,214 1,478,119 3,293,238 2,850,204



Income/(loss) from
operations 88,511 (93,868) 219,077 (156,140)



Other interest (expense),
net 592 630 1,679 2,251



Net income (loss) $ 89,103 $ (93,238) $ 220,756 $ (153,889)



Basic net income (loss)
per share $ 0.01 $ (0.01) $ 0.01 $ (0.01)



Basic weighted average
shares outstanding 14,075,662 14,075,662 14,075,662 14,075,662



Diluted net income (loss)
per share $ 0.01 $ (0.01) $ 0.01 $ (0.01)



Diluted weighted average
shares outstanding 15,883,942 14,075,662 16,008,031 14,075,662












NOTIFY TECHNOLOGYCORPORATION

Condensed Balance Sheets





March 31, Sept. 30,

2010 2009

Unaudited Audited

Assets:

Current assets:

Cash and cash equivalents $ 2,460,266 $ 1,565,447

Accounts receivable, net 566,895 810,543

Other assets 39,835 40,540

Total current assets 3,066,996 2,416,530

Non-current assets

Property and equipment, net 262,563 247,117

Lease deposits 15,602 15,602

Total non-current assets 278,165 262,719

Total assets $ 3,345,161 $ 2,679,249

Liabilities and shareholders' deficit

Current liabilities:

Current portion of capital lease obligation $ 3,564 $ 4,142

Accounts payable 45,196 75,340

Accrued payroll and related liabilities 492,982 454,946

Deferred revenue 3,436,387 2,995,906

Other accrued liabilities 116,768 140,464

Total current liabilities 4,094,897 3,670,798

Long-term liabilities:

Long-term Deferred revenue 124,973 137,250

Long-term capital lease obligations 4,790 6,543

Total long-term liabilities 129,763 143,793

Total liabilities 4,224,660 3,814,591

Shareholders' deficit:

Common stock 14,076 14,076

Additional paid-in capital 23,477,247 23,442,160

Accumulated deficit (24,370,822) (24,591,578)

Total shareholders' deficit (879,499) (1,135,342)

Total liabilities and shareholders' deficit $ 3,345,161 $ 2,679,249








Contacts:

At Notify Technology Corporation:

Jerry Rice, Chief Financial Officer

Phone: [phone]

[e-mail]







SOURCE Notify Technology Corporation