-- Record revenue of $5,825,309 for the period
-- Increase in revenue of 77% over 2007
-- Increase in gross margin of 394% over 2007
Operating Results
Revenues for the three months ended September 30, 2008 increased $2,528,371
or 77% to $5,825,309, compared with revenues of $3,296,938 for the three
months ended September 30, 2007. Gross margin for the three months ended
September 30, 2008 increased $1,482,879 or 394% to $1,859,357, compared to
$376,478 for the three months ended September 30, 2007. The Company
experienced a net loss of $2,712,221 for the three months ended September
30, 2008 compared to a net loss of $6,274,288 for the comparable period in
2007.
"Once again, Juma has demonstrated our company's stability and momentum as
we continue to grow our business and contract new clients. This marks the
fourth consecutive quarter of positive revenue growth," said Chairman and
Chief Executive Officer, Anthony M. Servidio. "Our consistent growth,
especially in today's tumultuous economy, clearly signifies the value that
our services deliver and the strength of our management team in executing
on our business plan," said Mr. Servidio.
"Without question, increasing sales in this economy is an impressive
achievement," said Anthony Fernandez, Chief Financial Officer for Juma.
"Equally important and noteworthy is the fact that we have successfully
maintained our gross profit while reducing overall net loss."
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 and management services provider, is a wholly
owned subsidiary of Juma and represents the company's services division.
The Nectar suite of services delivers real business solutions to help
companies mitigate risk, centralize systems management and dramatically
reduce telecom expenses.
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 may be forward-looking statements under the Private
Securities Litigation Act of 1995. Actual results may differ materially
from those included in the forward-looking statements. 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 Balance Sheet
September 30, December 31,
2008 2007
(Unaudited) (Audited)
---------------- ----------------
ASSETS
Current assets:
Cash $ 410,677 $ 302,889
Accounts receivable, (net of allowance
of $358,292 and $0, respectively) 2,987,982 3,775,360
Inventory 162,543 184,357
Prepaid expenses 37,877 100,180
Other current assets 267,973 312,051
---------------- ----------------
Total current assets 3,867,052 4,674,837
---------------- ----------------
Fixed assets, (net of accumulated
depreciation of $343,984 and
$540,344, respectively) 1,594,343 1,686,189
Other assets:
Security deposits 86,127 101,700
---------------- ----------------
Total assets $ 5,547,522 $ 6,462,726
================ ================
LIABILITIES AND STOCKHOLDERS'
DEFICIENCY
Current liabilities:
Notes payable $ 299,776 $ -
Convertible notes payable, (net of
discount of $15,278 and $219,444,
respectively) 534,723 905,556
Current portion of capital leases
payable 216,028 196,720
Accounts payable 2,604,297 2,564,353
Accrued expenses and taxes payable 1,805,495 552,006
Deferred revenue 214,181 654,032
---------------- ----------------
Total current liabilities 5,674,500 4,872,667
Capital leases payable, net of current
maturities 244,014 397,256
Notes payable 86,825 -
Convertible notes payable, (net of
discount of $198,042 and $484,376,
respectively) 6,801,957 3,615,624
---------------- ----------------
Total liabilities 12,807,296 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,
1,310,500 and 0 shares issued and
outstanding, respectively 131 -
Common stock, $0.0001 par value,
900,000,000 shares authorized,
45,524,685 and 43,943,950 shares
issued and outstanding, respectively 4,552 4,394
Additional paid in capital 19,457,611 15,342,357
Retained deficit (26,722,901) (17,770,405)
---------------- ----------------
Total stockholders' deficiency (7,259,774) (2,422,821)
---------------- ----------------
Total liabilities and
stockholders' deficiency $ 5,547,522 $ 6,462,726
================ ================
Juma Technology Corp. and Subsidiaries
Condensed Consolidated Statement of Operations
For the three and nine months ended September 30,
Three months Three months Nine months Nine months
ended ended ended ended
September 30, September 30, September 30, September 30,
2008 2007 2008 2007
------------- ------------- ------------- -------------
Sales $ 5,825,309 $ 3,296,938 $ 15,436,935 $ 9,537,002
Cost of goods
sold 3,965,952 2,920,460 11,539,452 8,244,510
------------- ------------- ------------- -------------
Gross margin 1,859,357 376,478 3,897,483 1,292,492
------------- ------------- ------------- -------------
Operating
expenses
Selling 348,972 874,269 1,406,077 2,183,545
Research and
development 239,581 232,936 629,103 410,027
Goodwill
impairment - (425,779) 204,600 1,569,480
Consulting - 715,000 - 715,000
General and
administrative 3,564,999 2,211,681 8,186,773 4,279,743
------------- ------------- ------------- -------------
Total
operating
expenses 4,153,552 3,608,107 10,426,553 9,157,795
------------- ------------- ------------- -------------
(Loss) from
operations (2,294,195) (3,231,629) (6,529,070) (7,865,303)
Amortization
of discount
on notes (107,078) (2,973,220) (655,538) (2,973,220)
Interest
(expense),
net (290,636) (69,439) (633,677) (138,042)
------------- ------------- ------------- -------------
(Loss) before
income taxes (2,691,909) (6,274,288) (7,818,285) (10,976,565)
(Benefit)/
Provision for
income taxes 20,312 - 22,011 (306,783)
------------- ------------- ------------- -------------
Net (loss) $ (2,712,221) $ (6,274,288) $ (7,840,296) $ (10,669,782)
Deemed
preferred
stock
dividend - - 1,112,200 -
------------- ------------- ------------- -------------
Net (loss)
attributable
to common
shareholders $ (2,712,221) $ (6,274,288) $ (8,952,496) $ (10,669,782)
============= ============= ============= =============
Basic and
diluted net
(loss) per
share $ (0.06) $ (0.15) $ (0.20) $ (0.25)
============= ============= ============= =============
Weighted
average
common shares
outstanding 44,718,084 43,120,864 44,206,378 42,275,329
============= ============= ============= =============
Contact Information: Contact: Melissa Nacerino Juma Technology Corp 646.291.8264