-- Record revenue of $4,974,747 for the period
-- Increase in revenue of 54% over 2007
-- Stable gross margins of 21%
-- Closed the third tranche of $1,450,000 of funding
-- Issued 498,000 shares of Series B Preferred Stock
-- Recorded a deemed preferred stock dividend of $1,112,200 related to
the issuance of warrants that were exchanged
Operating Results
Revenues for the three months ended June 30, 2008 increased $1,445,788 or
41% to $4,974,747, compared with revenues of $3,528,959 for the three
months ended June 30, 2007. Revenues for the six months ended June 30,
2008 increased $3,371,562 or 54% to $9,611,626, compared with revenues of
$6,240,064 for the six months ended June 30, 2007.
The Company experienced a net loss of $2,636,836 or $0.09 per share loss
for the three months ended June 30, 2008 compared to a net loss of
$1,499,245 or $0.04 per share for the comparable period in 2007. During
this period, the Company reported a deemed preferred stock dividend of
$1,112,200 related to the issuance of warrants that were exchanged. This
non-recurring deemed preferred stock dividend negatively affected the
earnings per share.
The Company experienced a net loss of $5,128,075 or $0.14 per share loss
for the six months ended June 30, 2008 compared to net loss of $4,395,494
or $0.11 per share loss for the comparable period in 2007.
"Despite one of the worst economic landscapes in recent times, Juma has
continued to grow our business and deliver quarter over quarter growth,"
said Chairman and Chief Executive Officer Anthony M. Servidio.
"Our second quarter earnings are a testament to the continued health and
stability of our company and our future potential," said Servidio.
About Juma (www.jumacorp.com)
Juma Technology Corp provides advanced IP Convergence solutions that
integrate voice, data and video applications. Juma's IP Convergence
solutions enable companies to increase productivity, enhance mobility and
create significant cost savings, particularly for multi-location
businesses. Juma has been recognized as an industry leader in providing
integrated business communications and services, helping customers leverage
network convergence to achieve their business goals. Nectar Services Corp,
an IP communications solutions provider, is a wholly owned subsidiary of
Juma and represents the company's services division.
Forward-Looking Statements
Historical results and trends should not be taken as indicative of future
operations. Management's statements contained in this report that are not
historical facts are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities and Exchange Act of 1934 (the "Exchange Act"), as amended.
Actual results may differ materially from those included in the
forward-looking statements. The Company intends such forward-looking
statements to be covered by the safe-harbor provisions for forward-looking
statements contained in the Private Securities Litigation Reform Act of
1995, and is including this statement for purposes of complying with those
safe-harbor provisions. Forward-looking statements, which are based on
certain assumptions and describe future plans, strategies and expectations
of the Company, are generally identifiable by use of the words "believe,"
"expect," "intend," "anticipate," "estimate," "project," "prospects," or
similar expressions. The Company's ability to predict results or the actual
effect of future plans or strategies is inherently uncertain. Factors which
could have a material adverse affect on the operations and future prospects
of the Company on a consolidated basis include, but are not limited to:
changes in economic conditions, legislative/regulatory changes,
availability of capital, interest rates, competition, significant
restructuring and acquisition activities, and generally accepted accounting
principles. These risks and uncertainties should be considered in
evaluating forward-looking statements and undue reliance should not be
placed on such statements. Further information concerning the Company and
its business, including additional factors that could materially affect the
Company's financial results, is included herein and in the Company's other
filings with the SEC.
Juma Technology Corp. and Subsidiaries
Condensed Consolidated Statement of Operations
For the three and six months ended June 30,
Three months Three months Six months Six months
ended ended ended ended
June 30, June 30, June 30, June 30,
2008 2007 2008 2007
------------ ------------ ------------ ------------
Sales $ 4,974,747 $ 3,528,959 $ 9,611,626 $ 6,240,064
Cost of goods sold 3,919,401 2,901,506 7,573,500 5,324,050
------------ ------------ ------------ ------------
Gross margin 1,055,346 627,453 2,038,126 916,014
------------ ------------ ------------ ------------
Operating expenses:
Selling 536,546 629,552 1,057,105 1,309,276
Research and
development 207,937 177,091 389,522 177,091
Goodwill impairment - - 204,600 1,995,259
General and
administrative 2,362,709 1,276,974 4,621,774 2,068,062
------------ ------------ ------------ ------------
Total operating
expenses 3,107,192 2,083,617 6,273,001 5,549,688
------------ ------------ ------------ ------------
(Loss) from
operations (2,051,846) (1,456,164) (4,234,875) (4,633,674)
Interest income/
(expense), net (584,691) (43,081) (891,501) (68,603)
------------ ------------ ------------ ------------
(Loss) before
income taxes (2,636,537) (1,499,245) (5,126,376) (4,702,277)
Provision/(Benefit)
for income taxes 299 - 1,699 (306,783)
------------ ------------ ------------ ------------
Net (loss) $ (2,636,836) $ (1,499,245) $ (5,128,075) $ (4,395,494)
Deemed preferred
stock dividend 1,112,200 - 1,112,200 -
------------ ------------ ------------ ------------
Net (loss)
attributable
to common
shareholders $ (3,749,036) $ (1,499,245) $ (6,240,275) $ (4,395,494)
============ ============ ============ ============
Basic and diluted
net (loss)
attributable to
common shareholders
per share $ (0.09) $ (0.04) $ (0.14) $ (0.11)
============ ============ ============ ============
Weighted average
common shares
outstanding 43,948,950 42,144,560 43,947,741 41,843,167
============ ============ ============ ============
Juma Technology Corp. and Subsidiaries
Condensed Consolidated Balance Sheet
June 30, December 31,
2008 2007
(Unaudited) (Audited)
ASSETS
------
Current assets:
Cash $ 943,231 $ 302,889
Accounts receivable, (net of allowance of
$196,955 and $0, respectively) 3,918,511 3,775,360
Inventory 156,288 184,357
Prepaid expenses 71,219 100,180
Other current assets 281,128 312,051
------------- -------------
Total current assets 5,370,377 4,674,837
Fixed assets, (net of accumulated
depreciation of $643,243 and $540,344,
respectively) 1,909,195 1,686,189
Other assets:
Security deposits 109,252 101,700
------------- -------------
Total assets $ 7,388,824 $ 6,462,726
============= =============
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
----------------------------------------
Current liabilities:
Convertible notes payable, (net of discount
of $109,078 and $219,444, respectively) $ 1,292,288 $ 905,556
Current portion of capital leases payable 213,651 196,720
Accounts payable 3,042,386 2,564,353
Accrued expenses and taxes payable 1,293,480 552,006
Deferred revenue 1,278,261 654,032
------------- -------------
Total current liabilities 7,120,066 4,872,667
Capital leases payable, net of current
maturities 286,614 397,256
Convertible note payable, (net of discount
of $441,541 and $484,376, respectively) 6,686,692 3,615,624
------------- -------------
Total liabilities 14,093,372 8,885,547
------------- -------------
Commitments and contingencies
Stockholders' deficiency
Series A Preferred stock, $0.0001 par value,
8,333,333 shares authorized, 8,333,333
shares issued and outstanding, respectively 833 833
Series B Preferred stock, $0.0001 par value,
1,666,667 shares authorized, 498,000 and 0
shares issued and outstanding, respectively 50 -
Common stock, $0.0001 par value, 900,000,000
shares authorized, 43,948,950 and 43,943,950
shares issued and outstanding, respectively 4,394 4,394
Additional paid-in capital 17,300,855 15,342,357
Retained deficit (24,010,680) (17,770,405)
------------- -------------
Total stockholders' deficiency (6,704,548) (2,422,821)
------------- -------------
Total liabilities and stockholders'
deficiency $ 7,388,824 $ 6,462,726
============= =============
Contact Information: Contact: Melissa Nacerino Juma Technology Corp 646.291.8264