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

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.

(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: [phone]
[e-mail]

SOURCE Notify Technology Corporation