Notify Technologies (fka NTFY)

[10 bagger]

NTFY.. $0.2228 Bid.. 4'th Qtr. Earnings..

Notify Technology Reports Preliminary Results for the Fourth Fiscal Quarter Ended September 30, 2010

PR Newswire - Nov 02 at 09:30

Company Symbols: NASDAQ-OTCBB:NTFY

Revenue increases by 13% over the same quarter in prior year.


SAN JOSE, Calif., Nov. 2, 2010 /PRNewswire-FirstCall/ -- Notify Technology Corporation (OTC Bulletin Board: NTFY) today announced preliminary financial results for its fourth fiscal quarter ended September 30, 2010.

Total fiscal fourth quarter revenue increased 13% to $1,878,112 in the three-month period ended September 30, 2010 from $1,665,621 during the same period in the prior year. Net income for the three month period ended September 30, 2010 was $182,776 or $0.01 per diluted share. The company&;s financial performance is an improvement from net income of $104,328 or $0.01 per diluted share, reported for the same period in the prior year. The increase in net income for the fiscal quarter reflects our continued success in growing and renewing customer accounts.

The company also experienced a 61% increase in cash and cash equivalents at September 30, 2010 as compared to cash and cash equivalents at September 30, 2009.

&;It gives me great pleasure to report the preliminary financial results of the final quarter of fiscal 2010. Not only have we achieved our sixth consecutive profitable quarter we also recorded our second profitable year,&; said Paul DePond, President and Chief Executive Officer of the company. &;I expect the fully audited results to be released in December 2010.&;

Sales and Marketing expenses were $555,371 in the three-month period ended September 30, 2010 compared to $614,023 in the three-month period ended September 30, 2009. The decrease was primarily the result of a decrease in salary and commission expenses.

Research and Development expenses were $676,429 in the three-month period ended September 30, 2010 compared to $467,883 in the three-month period ended September 30, 2009. The increase was due to the increased salaries as we expanded our design and testing staff to meet the demands of a rapidly expanding smart phone market. Our development efforts were devoted to increasing the feature set of our software products, porting our solution to new devices and creating new products.

General and Administrative expenses were flat at $444,863 in the three-month period ended September 30, 2010 compared to $447,481 for the three-month period ended September 30, 2009.

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. 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 expected timing of the release of the Company&;s audited results. Those statements are based on unaudited 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 INCOME



Three-Month Periods

Ended September 30,

2010 2009

(Unaudited)



Revenue:

Product sales $ 1,878,112 $ 1,665,621

Total revenue 1,878,112 1,665,621





Cost of revenue:

Product cost 18,612 ---

Royalty payments 1,371 35,891

Total cost of revenue 19,983 35,891

Gross profit 1,858,129 1,629,730



Operating expenses:

Research and development 676,429 467,883

Sales and marketing 555,371 614,023

General and administrative 444,863 447,481

Total operating expenses 1,676,663 1,529,387



Income from operations 181,466 100,343



Interest income and other, net 1,310 3,985

Net income before provision for income taxes 182,776 104,328



Provision for income taxes - - - -

Net income $ 182,776 $ 104,328



Basic and diluted net income per share $ 0.01 $ 0.01



Basic weighted average shares outstanding 14,095,210 14,075,662



Diluted weighted net income per share $ 0.01 $ 0.01



Diluted weighted average shares outstanding 15,531,770 16,031,553














NOTIFY TECHNOLOGY CORPORATION

Condensed Balance Sheets



Sept. 30, Sept. 30,

2010 2009

Unaudited Audited

Assets:

Current assets:

Cash and cash equivalents $ 2,526,654 $ 1,565,447

Accounts receivable, net 292,040 810,543

Other assets 44,570 40,540

Total current assets 2,863,264 2,416,530

Non-current assets

Property and equipment, net 306,380 247,117

Lease deposits 15,602 15,602

Total non-current assets 321,982 262,719

Total assets $ 3,185,246 $ 2,679,249

Liabilities and shareholders' deficit

Current liabilities:

Current portion of capital lease obligation $ 3,369 $ 4,142

Accounts payable 55,378 75,340

Accrued payroll and related liabilities 405,203 454,946

Deferred revenue 2,927,067 2,995,906

Other accrued liabilities 123,066 140,464

Total current liabilities 3,514,083 3,670,798

Long-term liabilities:

Long-term Deferred revenue 112,696 137,250

Long-term capital lease obligations 3,174 6,543

Total long-term liabilities 115,870 143,793

Total liabilities 3,629,953 3,814,591

Shareholders' deficit:

Preferred stock - - - -

Common stock 14,111 14,076

Additional paid-in capital 23,516,721 23,442,160

Accumulated deficit (23,975,539) (24,591,578)

Total shareholders' deficit (444,707) (1,135,342)

Total liabilities and shareholders' deficit $ 3,185,246 $ 2,679,249










Contacts:

At Notify Technology Corporation:

Jerry Rice, Chief Financial Officer

Phone: [phone]

[e-mail]







SOURCE Notify Technology Corporation