LOS GATOS, Calif., Nov. 9, 2006 (PRIMEZONE) -- Semotus Solutions, Inc. (AMEX:DLK), an innovative leader of software solutions for enterprise mobility, today announced its financial results for the three and six months ended September 30, 2006.
Financial Highlights for the Three and Six Months Ended September 30,
2006 Compared to the Three and Six Months Ended September 30, 2005:
-- Revenues totaled $511,286, representing a 25% decline from
revenues of $685,721 for the three month period, and totaled
$947,974, representing an 18% decline from revenues of $1,163,066
for the six month period.
-- Gross profit margin on sales decreased to 84% from 88% for the
three month period, but remained the same at 81% for both of the
six month periods.
-- Operating expenses declined 21% to $749,267 from $954,116 for
the three month period, and declined 5% to $1,687,153 from
$1,775,136 for the six month period.
-- Net loss increased 10% to $350,610 from a net loss of $318,197
for the three month period, and increased 18.5% to $937,303 from
790,666; however, net loss per share remained constant at $0.01
loss per basic and diluted share for the three month periods and
$0.03 loss per basic and diluted share for the six month periods.
-- As of September 30, 2006, cash and cash equivalents totaled
$916,591; net trade receivables were $497,580; available working
capital was $338,021; and total stockholders' equity was
$3,757,689.
Commenting on the Company's operations, Anthony LaPine, Chairman and CEO of Semotus, noted, "Our R&D investment in the second quarter was $268,465, which represented 48% of our revenue. These substantial investments in R&D reflect our continued commitment to develop new products and features which we believe will fuel future growth for the Company. I was pleased to see that our general and administrative expense of $199,390 in the three month period of this fiscal year was 39% lower than the $325,938 general and administrative expense in the three month period of our previous fiscal year, and that our operating expense of $749,267 in the three month period of this fiscal year was 21% lower than the $954,116 operating expense in the three month period of our previous fiscal year. These improvements reflect management's diligence in reducing overhead and streamlining the organization.
"In the second quarter the Company completed the final stage of its offshore R&D initiative with the shutdown of its Canadian engineering facility in Vancouver, B.C. It is expected that savings from this transition will be meaningful in the Company's fiscal third quarter. In addition, during the second quarter the Company completed the consolidation of its recent acquisitions, Clickmarks and Expand Beyond, resulting in selected headcount reductions. The cost savings expected from both consolidation efforts and offshore R&D initiatives are expected to result in lower expenses in the Company's third quarter, contributing to our drive for long-term financial stability."
Continuing, LaPine said, "Although revenue for the quarter was lower than expected, current sales activity remains high and our sales pipeline reflects significant opportunities which are being vigorously pursued. In addition, Semotus has been actively recruiting new sales personnel as it strives to regain momentum in the sales arena.
"In addition to our dedicated efforts to grow our enterprise mobility suite of products and services, we have been aggressively pursuing a wide range of creative business strategies, including acquisitions, mergers and reverse mergers that offer potential to improve and enhance the Company's long-term value proposition. We remain committed to defining and executing strategies that provide the greatest value-driven growth opportunities for Semotus and its shareholders, and will continue to move forward with this objective firmly in focus," concluded LaPine.
About Semotus Solutions
Founded in 1993, Semotus Solutions is the premier provider of software for the mobile enterprise, connecting employees to critical business systems, information and processes. Semotus has a Fortune 1000-installed customer base and hundreds of corporate clients including Lockheed Martin, Blue Cross Blue Shield, Coca-Cola, Hewlett Packard, Nextel Communications, JP Morgan Chase and The United Nations. Semotus Solutions' software provides mobility, convenience, efficiency and profitability in the areas of workforce automation, finance, health care and m-commerce. For more information on the Company, please visit the following web sites: http://www.semotus.com; http://www.hiplinkwireless.com; http://www.clickmarks.com; http://www.xb.com.
This press release contains forward-looking statements, which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as ``intends,'' ``believes,'' and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, the ability to secure additional sources of finance, the ability to reduce operating expenses, and other factors described in the Company's filings with the Securities and Exchange Commission. The actual results that the Company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.