Notify Technology Reports Results for the Fiscal Year Ended September 30, 2012

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December 22, 2012 02:08 AM EST	Reads:	565

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SAN JOSE, Calif., Dec. 22, 2012 /PRNewswire/ -- Notify Technology Corporation (Pink Sheets: NTFY.PK) today announced financial results for its fiscal year ended September 30, 2012.

Total fiscal twelve-month revenue decreased 11% to $6,107,445 in the twelve-month period ended September 30, 2012 from $6,833,885 during the same period in the prior year. The net loss for the twelve month period ended September 30, 2012 was $943,644 or $13.38 per diluted share. The company's financial performance dropped from a net loss of $487,768, or $6.91 per diluted share, reported for the same period in the prior year. The decrease in net income for the fiscal year reflects a combination of a reduction in sales of the NotifyLink and NotifySync products and the slower than anticipated growth of the NotifyMDM product line.

"This has been a challenging year for Notify as we have found the mobile device management (MDM) market to be much more competitive than we expected" said David Hanabusa, President and Chief Executive Officer of the company. "We are continually improving our MDM product and have invested heavily in development assets to do so. We have also streamlined our operation where we can without sacrificing product design."

Sales and Marketing expenses were $2,197,826 in the twelve-month period ended September 30, 2012 compared to $2,504,948 in the twelve-month period ended September 30, 2011. Spending was focused on the NotifyMDM product line and marketing of the NotifyLink product line was deemphasized.

Research and Development expenses were $3,124,886 in the twelve-month period ended September 30, 2012 compared to $3,079,921 in the twelve-month period ended September 30, 2011. The increase was due to the investment to expedite the development of the NotifyMDM product line while still maintaining the capability to improve and support the NotifySync and NotifyLink products.

General and Administrative expenses decreased to $1,639,111 in the twelve-month period ended September 30, 2012 compared to $1,722,342 for the twelve-month period ended September 30, 2011. The decrease was primarily due to incurring minimal SEC filing costs and reducing executive compensation.

About Notify Technology Corporation
Founded in 1994, Notify Technology Corporation is an independent software vendor (ISV) who has specialized in wireless mobility solutions and services for the past 11 years. Notify's products including NotifyLink, NotifySync and NotifyMDM support all major smart phone and tablet platforms independent of wireless carrier or network. Notify sells its mobility products directly and through authorized resellers internationally. Notify is an official Apple iOS Enterprise Development Partner, Android Development Partner, BlackBerry Development Partner, Windows Mobile and Windows Phone Development Partner. The Company is headquartered in San Jose, California with product development and technical support located in Canfield, Ohio. For more information, visit http://www.notifycorp.com or contact 408-777-7930.

CIO, CTO & Developer Resources

(Financial Tables Follow)

NOTIFY TECHNOLOGY CORPORATION CONDENSED STATEMENTS OF OPERATIONS

			Three-Month Periods		Twelve-Month Periods
			Ended September 30,		Ended September 30,
			2012	2011	2012	2011
			(unaudited)	(audited)	(unaudited)	(audited)

Revenue:
		Product revenue	$ 1,423,085	$ 1,636,814	$6,107,445	$ 6,833,885
Total revenue			1,423,085	1,636,814	6,107,445	6,833,885


Cost of revenue:
	Product cost		34,013	4,449	82,027	24,689
	Royalty payments		7,485	1,195	19,700	5,291
Total cost of revenue			41,498	5,644	101,727	29,980
Gross profit			1,381,587	1,631,170	6,005,718	6,803,905

Operating expenses:
		Research and development	700,046	796,801	3,124,886	3,079,921
		Sales and marketing	375,721	602,161	2,197,826	2,504,948
		General and administrative	439,836	455,981	1,639,111	1,722,342
Total operating expenses			1,515,603	1,854,943	6,961,823	7,307,211

Income from operations			(134,016)	(223,773)	(956,105)	(503,306)

Interest income and other, net			2,152	3,344	12,461	15,538

Net income (loss) before provision for income taxes			(131,864)	(220,430)	(943,644)	(487,768)

Provision for income taxes			--	--	--	--
Net income (loss)			$ (131,864)	$ (220,430)	$ (943,644)	$(487,768)

Basic net income (loss) per share			$ (1.87)	$ (3.12)	$ (13.38)	$ (6.91)

Basic weighted average shares outstanding			70,556	70,556	70,556	70,556

Diluted weighted net income (loss) per share			$ (1.87)	$ (3.15)	$ (13.38)	$ (6.91)

Diluted weighted average shares outstanding			70,556	70,556	70,556	70,556

Notify Technology CORPORATION
Condensed Balance Sheets
			Sept. 30,	Sept. 30,
			2012	2011
			(unaudited)	(audited)
Assets:
Current assets:
		Cash and cash equivalents	$ 902,447	$ 2,040,580
		Accounts receivable, net	156,492	271,251
		Other assets	110,586	83,235
Total current assets			1,169,525	2,395,066
	Non-current assets
		Property and equipment, net	192,460	312,272
		Lease deposits	15,602	15,602
	Total non-current assets		208,062	327,874
		Total assets	$ 1,377,587	$ 2,722,940
Liabilities and shareholders' deficit
Current liabilities:
		Current portion of capital lease obligation	$ 2,830	$ 2,665
		Accounts payable	67,534	65,103
		Accrued payroll and related liabilities	330,571	426,151
		Deferred revenue	2,453,860	2,839,051
		Other accrued liabilities	163,832	128,915
Total current liabilities			3,018,627	3,461,885
Long-term liabilities:
		Long-term Deferred revenue	63,588	88,142
		Long-term capital lease obligations	9,289	12,120
Total long-term liabilities			72,877	100,262
Total liabilities			3,091,504	3,562,147
Shareholders' deficit:
		Preferred stock	- -	- -
		Common stock	71	71
		Additional paid-in capital	23,692,964	23,624,030
		Accumulated deficit	(25,406,952)	(24,463,308)
Total shareholders' deficit			(1,713,917)	(839,207)
		Total liabilities and shareholders' deficit	$ 1,377,587	$ 2,722,940

Contacts:
At Notify Technology Corporation:
Jerry Rice, Chief Financial Officer
Phone: 408-777-7927
jerry.rice@notifycorp.com

SOURCE Notify Technology Corporation

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Notify Technology Reports Results for the Fiscal Year Ended September 30, 2012

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