KIRKLAND, Wash., Nov. 23, 2010 (GLOBE NEWSWIRE) -- CoroWare, Inc. (OTCBB:COWI) today announced its financial results for the quarter ended September 30, 2010.
For the quarter ended September 30, 2010 ("the 2010 Period"), CoroWare ("the Company") reported revenues of $376,648 compared to revenues of $386,903 during the three-month period ended September 30, 2010 (the "2010 Period"). Revenues decreased compared to the previous quarter as customers deferred spending in July and August on software development, infrastructure deployment, and video conferencing projects. Gross Revenues were depressed the months of July and August, but recovered in September as deferred projects were approved; mobile robot purchases remained depressed throughout the quarter.
Gross Profit was $133,027 (35.3% gross profit percentage) for the 2010 Period compared to $73,180 (18.9% gross profit percentage) for the 2009 Period as a result of the Company improving cost controls on software development and infrastructure deployment projects.
Total operating expenses were $479,376 during the 2010 Period compared to $313,116 during the 2009 Period. Sales and Marketing expenses were higher in the 2010 Period as the company increased selling activities for HD videoconferencing, while General and Administrative expenses decreased modestly as the Company continued to maintain or reduce costs related to rent, travel, and officers' salaries. Research and development expenses were $51,097 during the 2010 Period compared to $0 during the 2009 Period as the company continued to develop and announce new software products, such as CoroWare NameTag™.
Loss from operations before other income was ($346,349) during the 2010 period, which increased from ($239,936) during the 2009 period. Net Loss applicable to common shareholders was ($1,408,065) during the 2010 period compared to a Net Loss of ($611,678) in the 2009 period. The Net Loss in the 2010 Period was predominantly due to Derivative Expense of $923,670 and Amortization of Deferred Finance Costs and Debt Discount of $142,061.
Net Cash Flows from Operating Activities was $40,173 for the 2010 Period compared to ($307,493) for the 2009 Period.
"Although the third quarter results were lower than expected as a result of reduced customer spending in July and August, customers began purchasing products and services in September," said Lloyd Spencer, CEO of CoroWare, Inc. "We anticipate customers will continue to resume spending in the coming months on IT consulting, software development, and HD video conferencing services."
The full 10-Q report can be accessed by going to www.coroware.com, visiting the Investors page and clicking "Latest 10-Q filing."
About CoroWare
Headquartered in Redmond, Washington, CoroWare is a solutions integrator with expertise in mobile robotics, personal telepresence, IT consulting and software development. For more information on CoroWare's products and services, please visit www.CoroWare.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.