| B: Notify Technology Reports Results for the First Fiscal Quart
B: Notify Technology Reports Results for the First Fiscal Quarter Ended
December 31, 2002 'Revenue Increases Over 800% from Same Period Last Year, Net
Loss Decreases Over 600% from Same Period Last Year'
SAN JOSE, Calif., Feb 6, 2003 /PRNewswire-FirstCall via COMTEX/ -- Notify
Technology Corporation (OTC: NTFY) today announced financial results for the
quarter ended December 31, 2002.
Revenues for the three month period ended December 31, 2002, increased to
$2,262,474 from $232,945 reported for the comparable three month period of
fiscal 2002. The Company's net loss for the three month period ended December
31, 2002, was $98,536 or a net loss per share of $0.02, compared to a net loss
of $604,929, or a net loss per share of $0.15, reported for the corresponding
period of fiscal 2002.
Sales of the Visual Got Mail Solution for voice messaging were responsible for
the increase in revenue in the first fiscal quarter of 2003. The Visual Got Mail
Solution was first shipped in April 2002, which was the third fiscal quarter of
2002. The Visual Got Mail solution accounted for 95% of the revenue for the
fiscal quarter ended December 31, 2002 followed by the Centrex Receptionist at
2%.
The gross margin of 29.3% for the three month period ending December 31, 2002
decreased significantly compared to 85.8% for the same period in the prior year.
This reduction in gross margin was due to a complete change of product mix from
low volume sales of the high margin Centrex Receptionist product to high volume
sales of the lower margin Visual Got Mail Solution product. In addition, the
Company experienced royalty revenue of $18,200 in the three month period ended
December 31, 2002 compared to $63,880 in the three month period ended December
31, 2001.
Demand for the Visual Got Mail Solution remains strong and as of December 31,
2002 the Company had an order backlog of over $2,100,000. Notify Technology's
Visual Got Mail solution is comprised of two components that provide consumers
with visual notification of new voicemail messages. The first component is the
Call Manager 100 device or Customer Premise Equipment (CPE). The second
component is the Visual Got Mail Notification Server that retrieves information
from the voice-messaging platform regarding a consumers voice message status and
communicates that information with Call Manager 100 device. The Visual Got Mail
business model realizes revenue from both the CM100 CPE sales and recurring
revenue from the Visual Got Mail notification service on a per subscriber, per
month basis. A key aspect of the Visual Got Mail program is the revenue from a
monthly service fee collected based on the number of active user accounts. This
revenue source will be more significant if the installed base of Visual Got Mail
Solution grows. The service fees for the three month period ended December 31,
2002 were $216,000.
Over the past year, the Company has focused a major portion of its research and
development on its wireless software products and services. In the first quarter
of fiscal 2003, customer interest in the form of inquiries and evaluations
increased significantly for the NotifyLink Enterprise Edition product designed
for use with Novell GroupWise. Revenue for the NotifyLink Enterprise Edition is
in the form of annual contracts recognized on a straight-line basis over a
twelve month period. Individual contracts signed for NotifyLink Enterprise
wireless products increased in November and December but had no significant
impact on total revenues.
"We are very happy that our Visual Got Mail Solution program has performed well
for nine months. We have successfully serviced a rapidly growing installed base
of users. We handle more than a million voice mail inquiries each day through
our Visual Got Mail service center. We also hope our backlog will allow us to
continue to maintain Visual Got Mail Solution revenue over the coming quarters,"
said Paul DePond, Chief Executive Officer. "The sales of our Visual Got Mail
Solution continues to be a major component of our revenue while we are building
longer term revenue with our expanding wireless products and services."
About Notify Technology Corporation
Founded in 1994, Notify Technology Corporation is an innovative communications
company offering wireline and wireless products and services. Notify's wireline
solution provides consumer voice mail notification to customers of CLECs in
multiple states. Notify's wireless solutions provide consumer, SOHO, and
enterprise environments with notification, access, and management on a variety
of wireless 2-way devices. Notify sells its products through wireline carriers
and wireless carriers. The company is headquartered in San Jose, Calif. For more
information, visit notifycorp.com or contact 408-777-7920.
CONTACT: Jerry Rice, Chief Financial Officer of Notify Technology Corporation,
+1-408-777-7927, or jerry.rice@notifycorp.com. |
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