KIRKLAND, Wash., June 9, 2011 (GLOBE NEWSWIRE) -- CoroWare, Inc. (OTCBB:COWIE) today announced its financial results for the quarter ended March 31, 2011.
For the quarter ended March 31, 2011 ("the 2011 Period"), CoroWare ("the Company") reported revenues of $370,504 compared to revenues of $545,809 during the three-month period ended March 31, 2010 (the "2010 Period"). Revenues were lower than the previous quarter as customers continued to defer purchases of videoconferencing services, infrastructure and room systems; and delayed spending on software development services for billing integration, custom engineering, and IT consulting projects. Gross Revenues were depressed in January, but began recovering in February as deferred projects were approved.
Gross Profit was $108,190 (29.2% gross profit percentage) for the 2011 Period compared to $105,373 (19.3% gross profit percentage) for the 2010 Period. The improved gross profit percentage resulted from our increased focus on software development and program management services in new technology areas such as operational business intelligence.
Research and development was $45,739 for the 2011 Period compared to $0 in the 2010 Period. The increased research and development investment resulted from our software development and testing initiatives, including CoroCall Communications Cloud Service and CoroWare Billing Integration Framework for MetraTech and FreeSwitch.
Operating expenses were $458,514 during the 2011 Period compared to $262,741 during the 2010 Period. Sales and marketing were higher in the 2011 Period as the Company continued to invest in sales and marketing initiatives to help increase major account sales of CoroCall and CoroWare's telepresence product sales in the coming months. The increase in General and Administrative operating expenses was primarily attributable to the inclusion of SEC legal, document preparation, and filing fees.
Loss from operations was $350,324 during the 2011 Period compared to $157,368 in the 2010 Period. Total other income was $739,934 during the 2011 Period compared to $681,288 in the 2010 Period. Other income (expense) is comprised primarily of derivative income and amortization of debt discount and deferred finance costs. Net income for the 2011 Period was $389,610 compared to net income of $523,920 for the 2010 Period.
Net Cash Flows from Operating Activities was $0 for the 2011 Period compared to $16,994 for the 2010 Period.
"Although first quarter gross revenues were below expectations, we were pleased to see sales begin to rebound in February," said Lloyd Spencer, CEO of CoroWare, Inc. "We look forward to continued revenue growth as customers launch operational business intelligence projects and purchase CoroCall 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.