LOS GATOS, Calif., July 1, 2008 (PRIME NEWSWIRE) -- Semotus Solutions, Inc. (OTCBB:SMOA), an innovative leader of software solutions for enterprise mobility, today announced its financial results for the fiscal year ended March 31, 2008.
Anthony LaPine, Chairman and CEO of Semotus, comments: "In fiscal 2008 our primary objectives were to eliminate unprofitable product lines, strengthen our sales team, reengineer our HipLink product line, reduce our burn rate, clean up the balance sheet, reduce expenses and find a merger partner. I believe we have achieved all of these objectives and as a consequence we are positioned strategically for future growth and profitability.
"In spite of the fact that Semotus management was focused primarily on M&A in fiscal 2008, a number of operational successes were achieved. Our HipLink sales team was expanded and our HipLink product was extensively reengineered to improve functionality and reliability. This new HipLink software product has resulted in Semotus being selected by one of the largest metropolitan police departments in North America with an order that will be the largest in the history of the Company.
"Our lower revenue was expected and due largely to the selective streamlining of the Company's product lines and the successful sale of our financial product to Stockgroup. In addition, our net loss of $2,093,596 was due primarily to the non-cash write off of $1,554,412 in goodwill related to our acquisition of Clickmarks in 2005. With the pending acquisition of Flint Telecom, Semotus felt it prudent to write down the value of any goodwill that was not related to future growth of the Company.
"One of our major objectives in fiscal 2008 was to reduce our burn rate and conserve cash; we achieved that objective. Our R&D, Sales and Administrative expenses were reduced by over $1,000,000 from the previous year (approximately 40%) resulting in a reduction of our burn rate. As a result, our cash position year to year reflected a small $83,240 reduction.
"We firmly believe that our planned acquisition of Flint Telecom, Inc. concludes 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."
Financial Highlights for the Fiscal Year Ended March 31, 2008 Compared to the Fiscal Year Ended March 31, 2007:
* Net loss of $2,093,596 or $1.06 basic and diluted per share for the fiscal year ended March 31, 2008, as compared to a net loss of $2,062,988 or $1.18 basic and diluted per share, for the fiscal year ended March 31, 2007.
* Gross profit margin on sales increased 13% to 94% for the fiscal year ended March 31, 2008.
* Revenues totaled $966,122 for the fiscal year ended March 31, 2008, representing a 40% decline from revenues of $1,621,277 for the fiscal year ended March 31, 2007.
* Operating expenses increased to $3,448,244 from $3,331,955, of which, $1,554,412 was due to the impairment of goodwill on Clickmarks.
* As of March 31, 2008, cash and cash equivalents totaled $222,384, a net decrease of $83,204 from March 31, 2007, and total stockholders' equity was $1,496,442, a decrease of $1,365,868 from March 31, 2007.
LaPine continued: "Our current sales activity remains high and our sales pipeline is populated with numerous opportunities, which are being vigorously pursued. In addition to our dedicated efforts to grow revenue organically, we look forward to closing the transaction with Flint Telecom, Inc. and together building a very successful and sustainable business for the long term that will generate significant value for our loyal shareholders," 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, 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: 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.