SCOTTSDALE, Ariz., Nov. 13, 2008 (GLOBE NEWSWIRE) -- InPlay Technologies (Nasdaq:NPLA) today announced financial results for the three months ended September 30, 2008.
Revenue for the third quarter 2008 was $617,000, down from $1.2 million in the comparable period during 2007. For the three month period in 2008, revenue included $292,000 from the FinePoint segment and $325,000 from the Duraswitch segment.
InPlay reported a net loss for the quarter of $1.3 million, or $0.11 per share, compared to a net loss of $1.1 million or $0.09 per share for the third quarter of 2007.
"Subsequent to the end of the quarter, we sold the assets related to the Duraswitch segment. This sale brings in cash and focuses our efforts on what we believe to be a significant opportunity with our FinePoint technology," said Steve Hanson, chairman and CEO.
FinePoint revenue during the quarter included orders for additional pens and digitizers for a program that was discontinued last year, and non-recurring engineering fees for development of new products.
"We have put significant resources toward new customer designs, as well as further development of our patented digital pen and touch technology. We believe that these investments enable us to successfully achieve positive milestones in the short term, and position the company for long term growth," Hanson added.
Conference Call
InPlay Technologies will host a conference call today at 5:00 p.m. Eastern Time. To participate on the live call, analysts and investors should dial 866-249-5225 at least ten minutes prior to the call. To participate on the live call from outside the U.S., dial 303-262-2161. InPlay Technologies will also offer a live and archived webcast of the conference call, accessible from the "Investor" section of the company's Web site (http://www.inplaytechnologies.com). A telephonic replay of the conference call will also be available for 48 hours by dialing 800-405-2236 and entering passcode 11122216#.
About InPlay Technologies
InPlay Technologies is a developer of innovative human interface devices for computing and communication products. Our mission is to help make complex products easy and intuitive to use by providing a natural method of interaction. InPlay's integrated digital pen and touch technologies automatically recognize pen or finger input, allowing the user to choose the most effective input method. With the only digital-communication based pen input system, our products offer significant advantages over traditional analog designs. Like the evolution of cell phones from analog to digital, our roadmap enables an increasing number of useful features and functionality for computers, Smartphones and other electronic products. Visit www.inplaytechnologies.com for more information.
The InPlay Technologies, Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=4420
This news release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include statements our estimation of the opportunity for our FinePoint technology and our ability to achieve positive milestones. Risks and uncertainties that could cause results to differ materially from those projected include our ability to raise and maintain sufficient cash resources to fund our business plan, changes in orders or timing from our licensees and customers, lack of market acceptance of our products, unanticipated expenses or other unforeseen difficulties related to manufacturing our technologies and other uncertainties described from time to time in our documents filed with the Securities and Exchange Commission, including our Annual Report on Form 10-KSB for the year ended December 31, 2007 as filed with the Securities and Exchange Commission on March 24, 2008. These forward-looking statements represent our beliefs as of the date of this press release and we disclaim any intent or obligation to update these forward-looking statements.
INPLAY TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2008 2007 2008 2007
----------- ----------- ----------- -----------
NET REVENUE:
FinePoint $ 291,659 $ 1,019,423 $ 363,787 $ 2,591,440
Duraswitch:
Related party
- Delphi -- -- -- 7,631,250
Non-related
parties 324,931 203,780 939,384 711,733
----------- ----------- ----------- -----------
Total net
revenue 616,590 1,223,203 1,303,171 10,934,423
COST OF GOODS SOLD:
FinePoint 26,800 1,031,169 40,597 2,165,138
Duraswitch 107,355 65,596 312,213 287,757
----------- ----------- ----------- -----------
Total cost of
goods sold 134,155 1,096,765 352,810 2,452,895
----------- ----------- ----------- -----------
Gross profit 482,435 126,438 950,361 8,481,528
----------- ----------- ----------- -----------
OPERATING EXPENSES:
Selling, general
and
administrative 801,793 834,401 2,444,039 3,898,332
Research,
development and
commercial
application
engineering 963,611 551,874 2,809,563 1,294,596
----------- ----------- ----------- -----------
Total operating
expenses 1,765,404 1,386,275 5,253,602 5,192,928
----------- ----------- ----------- -----------
INCOME (LOSS) FROM
OPERATIONS (1,282,969) (1,259,837) (4,303,241) 3,288,600
OTHER INCOME - Net 4,121 95,416 48,031 222,382
----------- ----------- ----------- -----------
INCOME (LOSS)
BEFORE INCOME
TAXES $(1,278,848) $(1,164,421) $(4,255,210) $ 3,510,982
----------- ----------- ----------- -----------
PROVISION FOR
(BENEFIT FROM)
INCOME TAXES -- (93,508) -- --
----------- ----------- ----------- -----------
NET INCOME (LOSS) $(1,278,848) $(1,070,913) $(4,255,210) $ 3,510,982
=========== =========== =========== ===========
EARNINGS (LOSS)
PER SHARE - BASIC $ (0.11) $ (0.09) $ (0.37) $ 0.30
=========== =========== =========== ===========
EARNINGS (LOSS)
PER SHARE
- DILUTED $ (0.11) $ (0.09) $ (0.37) $ 0.30
=========== =========== =========== ===========
WEIGHTED AVERAGE
SHARES OUTSTANDING:
BASIC 11,622,568 11,533,236 11,609,817 11,513,776
=========== =========== =========== ===========
DILUTED 11,622,568 11,533,236 11,609,817 11,574,242
=========== =========== =========== ===========
INPLAY TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, December 31,
2008 2007
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 423,877 $ 5,592,412
Restricted short term investment 20,000 --
Accounts receivable 359,717 228,610
Inventory 126,619 108,562
Prepaid expenses and other current
assets 83,925 128,932
------------ ------------
Total current assets 1,014,138 6,058,516
PROPERTY AND EQUIPMENT - Net 456,981 437,248
GOODWILL 1,321,240 1,321,240
PATENTS - Net 1,119,845 1,205,977
OTHER ASSETS 17,731 17,731
------------ ------------
TOTAL ASSETS $ 3,929,935 $ 9,040,712
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 474,946 $ 642,781
Accrued salaries and benefits 434,295 777,987
Accrued purchase commitments 288,562 558,000
Other accrued expenses and other current
liabilities 356,408 453,108
Deferred revenue 15,000 15,695
------------ ------------
Total current liabilities 1,569,211 2,447,571
------------ ------------
LONG-TERM LIABILITIES:
Other non-current liabilities -- 173,228
------------ ------------
Total liabilities 1,569,211 2,620,799
------------ ------------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock, no par value,
10,000,000 shares authorized, no shares
issued and outstanding as of September
30, 2008 and December 31, 2007 -- --
Common stock, $.001 par value,
40,000,000 shares authorized,
11,622,568 and 11,595,138 shares issued
and outstanding as of September 30,
2008 and December 31, 2007, respectively 11,623 11,595
Additional paid-in capital 31,902,451 31,706,458
Accumulated deficit (29,553,350) (25,298,140)
------------ ------------
Total stockholders' equity 2,360,724 6,419,913
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 3,929,935 $ 9,040,712
============ ============