TULSA, OK -- (Marketwire) -- 05/08/12 -- MacroSolve, Inc. (PINKSHEETS: MCVE) (OTCQB: MCVE) ("MacroSolve" or the "Company"), a leading provider of mobile technologies, apps and solutions for business, today announced financial results for its first quarter of fiscal 2012, ended March 31, 2012.
Highlights for Q1 of fiscal 2012 include:
- Revenues increased 635% to $853,000 from $116,000 in the same period of FY 2011;
- $255,000 backlog expected to be completed in Q2 for custom mobile app solution services;
- Marks fifth consecutive quarter of revenue growth;
- Revenues grew by 13% on a quarter-over-quarter basis from $757,000 in Q4 of 2011;
- Gross profit increased 622% to $498,000 from $69,000 in Q1 of FY 2011; and
- The Company's distribution network supported growth in new sales of software products and solution services.
Revenues for the three months ended March 31, 2012 were $853,000 as compared to $116,000 in the quarter ended March 31, 2011. This 635% rise is due to increased intellectual property licensing and increased sales of the Company's products and services.
On March 31, 2012, MacroSolve had an additional $255,000 in backlog that is not included in the reported revenues for the quarter ended March 31, 2012 but is expected to be earned during the second quarter of 2012.
Gross profit in the first quarter of fiscal 2012 rose 622% to $498,000 from $69,000 in the first quarter of fiscal 2011.
Operating expenses increased 99% in the three months ended March 31, 2012 to $1,084,000 from $546,000 in the same period of fiscal 2011. The increase was driven by a rise in investments in growth via salaries, marketing, and public relations expenses in support of higher revenues, as well as depreciation and amortization expenses. The resulting loss from operations was $586,000 in the first quarter of fiscal 2012, up 23% over operating loss of $477,000 in the first quarter of fiscal 2011.
Net loss for the three months ended March 31, 2012 was ($705,000) or $(0.01) per share, as compared to a net loss of $(507,000) or $(0.01) in the three months ended March 31, 2011, an increase of $198,000, or 39%. The rise was primarily due to increasing the Company's workforce by 24 employees in support of future growth.
"We've just completed our fifth consecutive quarter of revenue increases, clearly demonstrating that our growth strategy is working," stated MacroSolve CEO and President, Steve Signoff. "We are ramping revenues at a brisk pace on two fronts: mobile app solution services and licensing sales. Both of these revenue sources are high in margins. Our custom mobile app solution services are experiencing strong momentum, with a current backlog of approximately $250,000. We are seeing this momentum continue into the second quarter."
For further information please see MacroSolve's full 10-Q filing at www.sec.gov.
About MacroSolve
MacroSolve, Inc., doing business as Illume Mobile, is a pioneer in delivering mobile apps, technologies, and solutions. Leveraging its intellectual property portfolio, MacroSolve enforces its landmark patent while providing mobile app products and services under the name Illume Mobile. MacroSolve is positioned to become a leader in the mobile app development services space, which is projected to become a $100 billion market in 2015 according to Research2Guidance. For more information, visit Illume Mobile at www.illumemobile.com.
Safe Harbor Statement
This press release contains projections of future results and other forward-looking statements that involve a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Important factors that may cause actual results and outcomes to differ materially from those contained in the projections and forward-looking statements included in this press release are described in our publicly filed reports. Factors that could cause these differences include, but are not limited to, the acceptance of our products, lack of revenue growth, failure to realize profitability, inability to raise capital and market conditions that negatively affect the market price of our common stock. The Company disclaims any responsibility to update any forward-looking statements.
MACROSOLVE, INC.
BALANCE SHEETS
3/31/2012 12/31/2011
ASSETS
----------- -----------
CURRENT ASSETS:
Cash $ 324,628 $ 273,132
Accounts receivable - trade 389,277 288,201
Prepaid expenses and other 268,525 240,388
----------- -----------
Total current assets 982,430 801,721
----------- -----------
PROPERTY AND EQUIPMENT, at cost: 263,837 285,976
Less - accumulated depreciation (165,015) (188,016)
----------- -----------
Net property and equipment 98,822 97,960
----------- -----------
OTHER ASSETS:
Note receivable 135,577 135,577
Software development costs, net of accumulated
amortization of $127,440 and $36,316 as of
March 31, 2012 and December 31, 2011,
respectively 1,306,698 1,280,903
Other assets 61,770 83,329
----------- -----------
Total other assets 1,504,045 1,499,809
----------- -----------
TOTAL ASSETS $ 2,585,297 $ 2,399,490
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
----------- -----------
CURRENT LIABILITIES:
Current maturities of long-term debt $ - $ -
Revolving Line of Credit 100,000 100,000
Note Payable - Shareholder 6,831 169,306
Accounts payable - trade and accrued liabilities 669,105 631,419
Unearned income 73,894 31,400
----------- -----------
Total current liabilities 849,830 932,125
----------- -----------
LONG-TERM DEBT, less current maturities
Oklahoma Technology Commercialization Center 237,500 237,500
Convertible debentures 2,096,162 2,621,161
----------- -----------
Total long-term debt, less current maturities 2,333,662 2,858,661
----------- -----------
COMMITMENTS AND CONTINGENCIES
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value; authorized
500,000,000 shares; issued and outstanding
144,686,945 and 122,386,894 shares, at March
31, 2012 and December 31, 2011, respectively 1,446,869 1,223,869
Additional paid-in capital 11,334,238 10,059,029
Accumulated deficit (13,379,30 (12,674,19
2) 4)
----------- -----------
Total stockholders' (deficit) equity (598,195) (1,391,296)
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 2,585,297 $ 2,399,490
=========== ===========
MACROSOLVE, INC.
STATEMENTS OF OPERATIONS
For the Quarters Ended
For the Periods Ended March 31, 3/31/2012 3/31/2011
REVENUES:
Software products and licensing $ 772,126 $ 20,317
Solution services 80,955 95,686
---------- ----------
Net revenues 853,081 116,003
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COST OF REVENUES:
Software products and licensing 293,436 -
Solution services 61,199 46,784
---------- ----------
Total cost of revenues 354,635 46,784
---------- ----------
Gross profit 498,446 69,219
---------- ----------
OPERATING EXPENSES:
Solution services 166,735 22,639
Depreciation and amortization 102,069 61,680
Marketing and sales 392,717 132,739
General and administrative 422,433 329,290
---------- ----------
Total operating expenses 1,083,954 546,348
---------- ----------
Loss from operations (585,508) (477,129)
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OTHER INCOME (EXPENSE):
Interest income 8 25
Interest expense (84,144) (6,313)
Loss on sale of asset (761) -
Stock based compensation (34,625) (23,988)
---------- ----------
Total other expense (119,522) (30,276)
---------- ----------
LOSS BEFORE INCOME TAXES (705,030) (507,405)
INCOME TAXES - -
---------- ----------
NET LOSS $ (705,030) $ (507,405)
========== ==========
LOSS ALLOCABLE TO COMMON STOCKHOLDERS:
Net loss $ (705,030) $ (507,405)
---------- ----------
Loss allocable to common stockholders $ (705,030) $ (507,405)
========== ==========
Basic and diluted loss per share $ (0.01) $ (0.01)
========== ==========
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Company Contact
Illume Mobile
info@macrosolve.com
Investor Contact
Laurel Moody
(646) 810-0608
lmoody@corporateprofile.com
Media Contact
Kedzie Schotters
(212) 431-1470
kedzie@publicnewyorkcity.com
