Semotus Announces First Quarter Results for Fiscal Year 2009


LOS GATOS, Calif., Aug. 12, 2008 (PRIME NEWSWIRE) -- Semotus Solutions, Inc. (OTCBB:SMOA), an innovative leader of software solutions for enterprise mobility, today announced its financial results for the three months ended June 30, 2008.

Financial Highlights:

-- For the three months ended June 30, 2008, a net loss of $234,565 or $0.10 basic and diluted per share, as compared to a net income of $195,146 or $0.11 basic per share and $0.09 diluted per share for the three months ended June 30, 2007.

-- Gross profit margin on sales increased to 99% for the three months ended June 30, 2008 from 93% for the same period in the previous fiscal year.

-- Revenues totaled $230,735 for the three months ended June 30, 2008, representing a 27% decline from revenues of $314,331 for the same period in the previous fiscal year.

-- Operating expenses declined 3% to $461,219 for the three months ended June 30, 2008 from $473,191 for the three months ended June 30, 2007.

-- As of June 30, 2008, cash and cash equivalents totaled $226,601, a net decrease of $4,217 from March 31, 2008.

Commenting on the Company's operations, Anthony LaPine, Chairman and CEO of Semotus, noted: "Although our revenues for the three months ended June 30, 2008 were disappointing, we are confident that next quarter's revenues will be higher. Additionally, we are pleased that we have been able to maintain our very low operating expenses, and that our gross profit margin has increased to 99% for the three months ended June 30, 2008."

LaPine continued: "In addition to our dedicated efforts to grow revenue organically, we continue to work towards closing the acquisition transaction with Flint Telecom, Inc. We are working closely with Flint while they compile the SEC required audits of Flint's 2007 and 2008 fiscal years. Once these audits are completed it is expected that the planned acquisition will move quickly to completion. This acquisition will conclude our search for a partner that truly complements our core skill set and will offer tremendous potential to improve the long term value of the Company for our shareholders."

"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 (OTCBB:SMOA) is a leading provider of software for the mobile enterprise, connecting employees to critical business systems, information, and processes. Semotus has a Fortune 1000 customer base, 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 and efficiency in the areas of workforce automation, finance, health care and m-commerce. For more information on the Company, please visit the following web sites: www.semotus.com; www.hiplinkwireless.com; www.clickmarks.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 closing of the acquisition of Flint, 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.


            

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