Notify Technologies (fka NTFY)

[10 bagger]

NTFY.. $0.28..

This is one stock that I have no problem owning.. Have been making a two sided market in it for 2 years and I do hope this large seller becomes pissed off enough to drive the price PS lower.. This is a true Micro Cap Growth company with bells and whistles.. Have never owned more than 28K in position but now that I know who the seller might be and why ,, It's worth owning more around the bid.. At present I only have 6301 in position.. hank

Notify Technology Corporation (OTC Bulletin Board: NTFY) today announced financial results for its fiscal year ended September 30, 2010.

Total fiscal twelve-month revenue increased 20% to $7,245,983 in the twelve-month period ended September 30, 2010 from $6,032,257 during the same period in the prior year. Net income for the twelve month period ended September 30, 2010 was $616,038 or $0.04 per diluted share. The company's financial performance is an improvement from net income of $70,685 or $0.01 per diluted share, reported for the same period in the prior year. The increase in net income for the fiscal year reflects the Company's 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 financial results of fiscal 2010. We have now reported our second consecutive profitable year," said Paul DePond, President and Chief Executive Officer of the company. "It is an achievement we are very satisfied with."

Sales and Marketing expenses were $2,510,970 in the twelve-month period ended September 30, 2010 compared to $2,322,315 in the twelve-month period ended September 30, 2009. The increase was primarily the result of an increase in salary and commission expenses.

Research and Development expenses were $2,256,301 in the twelve-month period ended September 30, 2010 compared to $1,917,614 in the twelve-month period ended September 30, 2009. The increase was due to the increased salary expense 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 increased to $1,814,600 in the twelve-month period ended September 30, 2010 compared to $1,574,958 for the twelve-month period ended September 30, 2009. The increase was primarily due to compensation expense related to personnel growth and bonuses for improved financial performance.

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.

On November 3, 2010, the Reporting Persons sent a letter to the Independent Committee of the Issuer. The Reporting Persons expressed their opposition to the Company’s plans to consider ceasing its reporting obligations with the Securities and Exchange Commission.


The Reporting Persons purchased the shares of common stock (the “Shares”) based on the Reporting Persons' belief that the Shares, when purchased, were undervalued and represented an attractive investment opportunity. Depending upon overall market conditions, other investment opportunities available to the Reporting Persons, and the availability of Shares at prices that would make the purchase of additional Shares desirable, the Reporting Persons may endeavor to increase their position in the Company through, among other things, the purchase of Shares on the open market or in private transactions or otherwise, on such terms and at such times as the Reporting Persons may deem advisable.


No Reporting Person has any present plan or proposal which would relate to or result in any of the matters set forth in subparagraphs (a) - (j) of Item 4 of Schedule 13D except as set forth herein or such as would occur upon completion of any of the actions discussed above. The Reporting Persons intend to review their investment in the Company on a continuing basis and engage in discussions with management and the Board of Directors of the Company concerning the business, operations and future plans of the Company. Depending on various factors including, without limitation, the Company’s financial position and investment strategy, the price levels of the Shares, conditions in the securities markets and general economic and industry conditions, the Reporting Persons may in the future take such actions with respect to their investment in the Company as they deem appropriate including, without limitation, seeking Board representation, making proposals to the Company concerning changes to the capitalization, ownership structure or operations of the Company, purchasing additional Shares, selling some or all of its Shares, engaging in short selling of or any hedging or similar transaction with respect to the Shares or changing its intention with respect to any and all matters referred to in Item 4.



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Item 5. Interest in Securities of the Issuer.

(a) and (b)
Strategic Turnaround Equity Partners, L.P. (Cayman) is deemed to be the direct beneficial owner of 1,153,572 shares of Common Stock, which represents approximately 8.19% of the number of shares of Common Stock stated to be outstanding by the Company in its Quarterly Report on Form 10-Q, as filed with the Securities and Exchange Commission on August 13, 2010. Strategic Turnaround Equity Partners, L.P. (Cayman) has shared voting and disposition power with respect to all of such shares.


Galloway Capital Management LLC is deemed to be the indirect beneficial owner of 1,153,572 shares of Common Stock which represents approximately 8.19% of the number of shares of Common Stock stated to be outstanding by the Company in its Quarterly Report on Form 10-Q, as filed with the Securities and Exchange Commission on August 13, 2010. Galloway Capital Management LLC has shared voting and disposition power with respect to all of such shares.


Bruce Galloway is deemed to be the beneficial owner of 1,577,909 shares of Common Stock which represents approximately 11.20% of the number of shares of Common Stock stated to be outstanding by the Company in its Quarterly Report on Form 10-Q, as filed with the Securities and Exchange Commission on August 13, 2010. Mr. Galloway is deemed to be the indirect beneficial owner of 1,153,572 shares of Common Stock owned directly by Strategic Turnaround Equity Partners, L.P. (Cayman), which he has shared voting and disposition power. In addition, Mr. Galloway has sole voting and disposition power with respect to 424,337 shares of Common Stock. Of the total 424,337 shares of common stock directly reported by Mr. Galloway, 291,671 shares of Common Stock are held in Mr. Galloway’s retirement account, 47,666 shares of Common Stock are owned by Mr. Galloway’s children for which Mr. Galloway has the sole power to vote and dispose, and 85,000 shares of Common Stock are held by Rexon Galloway Capital Growth LLC, an investment company in which Mr. Galloway is a member and for which Mr. Galloway retains investment and voting discretion.


Gary Herman is deemed to be the beneficial owner of 1,156,172 shares of Common Stock which represents approximately 8.21% of the number of shares of Common Stock stated to be outstanding by the Company in its Quarterly Report on Form 10-Q, as filed with the Securities and Exchange Commission on August 13, 2010. Mr. Herman is deemed to be the indirect beneficial owner of 1,153,572 shares of Common Stock owned directly by Strategic Turnaround Equity Partners, L.P. (Cayman), which he has shared voting and disposition power. In addition, Mr. Herman has sole voting and disposition power with respect to 2,600 shares of Common Stock. Of the total of 2,600 shares of common stock directly reported by Mr. Herman, 2,500 shares are held by FBR, Inc., all of which Mr. Herman has investment and voting discretion.

Each of Galloway Capital Management, LLC, Bruce Galloway and Gary L. Herman disclaim beneficial ownership of the shares of Common Stock directly beneficially owned by Strategic Turnaround Equity Partners, L.P. (Cayman) (except for (i) the indirect interest of Galloway Capital Management LLC by virtue of being the general partner of Strategic Turnaround Equity Partners, L.P. (Cayman), (ii) the indirect interests of Bruce Galloway and Gary L. Herman by virtue of being members of Galloway Capital Management LLC, and (iii) the indirect interests of Bruce Galloway and Gary L. Herman by virtue of being limited partners of Strategic Turnaround Equity Partners, L.P. (Cayman). Galloway Capital Management LLC, Gary L. Herman and Bruce Galloway have shared power to direct the vote and shared power to direct the disposition of these shares of Common Stock.