LOS GATOS, Calif., Feb. 19, 2008 (PRIME NEWSWIRE) -- Semotus Solutions, Inc. (AMEX:DLK), an innovative leader of software solutions for enterprise mobility, today announced its financial results for the three and nine months ended December 31, 2007.
Financial Highlights for the Three and Nine Months Ended December 31, 2007 Compared to the Three and Nine Months Ended December 31, 2006:
* Net loss of $3,394,381 or $1.61 basic and diluted per share, as compared to a net loss of $323,714 or $0.18 per share, basic and diluted, for the three month periods; Net income of $77,424 or $0.04 basic and diluted per share, as compared to a net loss of $1,261,017 or $0.73 per share, basic and diluted, for the same nine month periods. * Gross profit margin on sales increased to 99% from 83% for the three month periods, and increased to 91% from 82% for the same nine month periods. * Revenues totaled $249,683 for the three months ended December 31, 2007, representing a 28% decline from revenues of $348,317 for the three months ended December 31, 2006; Revenues totaled $703,817 for the nine months ended December 31, 2007, representing a 46% decline from the same period in the previous fiscal year. * Operating expenses increased substantially to $3,644,354 from $613,587 for the three month periods, and increased to $4,611,649 from $2,300,647 for the nine month periods, of which $3,263.750 was due to the impairment of the value of Innofone stock paid to Semotus in exchange for a license to our technology. * As of December 31, 2007, cash and cash equivalents totaled $283,944, a net decrease of $21,644 from March 31, 2007, and total stockholders' equity was $3,527,262, an increase of $664,952 from March 31, 2007.
Commenting on the Company's operations, Anthony LaPine, Chairman and CEO of Semotus, noted, "I am pleased to report that there are several positive elements to our financial statements this quarter. Although we reported a net loss for the quarter, we did report net income of $0.04 per share for the nine months ended December 31, 2007. Additionally, our gross profit margins continue to increase, principally due to the sale of our financial data and software services assets which had higher costs and a lower gross profit."
LaPine continued: "In the third quarter of fiscal 2008 we took an impairment expense of the investment in Innofone of $3,263,750 all of which was non-cash; this is reflected in our third quarter financials. This resulted in a substantial increase in reported expenses. Also, revenue for the quarter was lower than in the same period of the previous fiscal year, due primarily to the recent sale of our financial data software and services to Stockgroup, but current sales activity remains high and our sales pipeline is populated with numerous opportunities, which are being vigorously pursued. In addition, Semotus has hired two new sales personnel as we strive to regain momentum in the sales arena."
"In addition to our dedicated efforts to grow revenue organically, we are continuing to aggressively pursue a wide range of creative business strategies, including acquisitions, mergers, reverse mergers and/or private financings that offer potential to improve and enhance the Company's long-term value proposition. We are in various stages of discussion and negotiation with a number of entities. 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, JPMorgan 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.