FARMINGDALE, NY--(Marketwire - August 13, 2010) - Juma Technology Corp. (
Second Quarter 2010 Highlights
- Q2 revenue increases to $3,434,279
- Research and development expenses decreased 42% over Q2 2009
- General and administrative expenses decreased 54% over Q2 2009
Operating Results:
Revenues for the three months ended June 30, 2010 increased $43,149 or 1% to $3,434,279, compared with revenues of $3,391,130 for the three months ended June 30, 2009. Research and development expenses decreased by $51,769 or 42% to $71,472 for the three months ended June 30, 2010, compared to $123,241 for the three months ended June 30, 2009. General and administrative expenses decreased by $1,487,901 or 54% to $1,277,043 for the three months ended June 30, 2010, compared to $2,764,944 for the three months ended June 30, 2009. The Company incurred a net loss of $2,235,936 for the three months ended June 30, 2010 compared to a net loss of $5,123,684 for the three months ended June 30, 2009.
"Each Quarter, we set out to outpace our performance from the previous year. This Quarter, we met our goals. While the marketplace remains tentative, we believe a positive turning point is eminent. We fully intend to continue executing on our business plan, which will enable us to grow our top line revenue while driving efficiencies throughout our company," said Anthony M. Servidio, Chief Executive Officer.
Anthony Fernandez, Chief Financial Officer for Juma, said, "Our second quarter earnings reflect a more accurate picture of our run rate than the first quarter of 2010, which was significantly lower."
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. 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. (www.nectarcorp.com), 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. Follow us on Twitter: www.twitter.com/jumatech.
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 Sheets | ||||||||||
| June 30, 2010 | December 31, 2009 | |||||||||
| (Unaudited) | (Audited) | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash | $ | 272,870 | $ | 961,001 | ||||||
| Accounts receivable, (net of allowance of $292,772 and $231,471, respectively) | 3,307,950 | 2,175,034 | ||||||||
| Inventory | 164,296 | 161,770 | ||||||||
| Prepaid expenses | 63,789 | 26,837 | ||||||||
| Other current assets | 133,889 | 133,889 | ||||||||
| Total current assets | 3,942,794 | 3,458,531 | ||||||||
| Fixed assets, (net of accumulated depreciation of $1,030,179 and $827,839, respectively) | 1,061,594 | 1,224,120 | ||||||||
| Other assets | 197,099 | 248,509 | ||||||||
| Total assets | $ | 5,201,487 | $ | 4,931,160 | ||||||
| LIABILITIES AND STOCKHOLDERS' DEFICIENCY | ||||||||||
| Current liabilities: | ||||||||||
| Notes payable, (net of discount of $37,507 and $0, respectively) | $ | 790,519 | $ | 297,486 | ||||||
| Convertible notes payable, (plus premium of $169,129 and net of discount of $604,435, respectively) | 15,511,296 | 12,099,346 | ||||||||
| Current portion of capital leases payable | 104,961 | 174,115 | ||||||||
| Accounts payable | 1,838,017 | 2,022,532 | ||||||||
| Accrued expenses and taxes payable | 2,215,745 | 1,685,810 | ||||||||
| Deferred revenue | 69,185 | 76,174 | ||||||||
| Total current liabilities | 20,529,723 | 16,355,463 | ||||||||
| Capital leases payable, net of current maturities | 1,901 | 25,466 | ||||||||
| Convertible notes payable, (net of discount of $2,084 and $0, respectively) | 641,448 | 700,000 | ||||||||
| Total liabilities | 21,173,072 | 17,080,929 | ||||||||
| 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, 1,666,500 and 1,666,500 shares issued and outstanding, respectively | 167 | 167 | ||||||||
| Series C Preferred Stock, $0.0001 par value, 10,000,000 shares authorized, 1,970,756 and 0 shares issued and outstanding, respectively | 197 | - | ||||||||
| Common stock, $0.0001 par value, 900,000,000 shares authorized, 46,648,945 and 46,648,945 shares issued and outstanding, respectively | 4,646 | 4,646 | ||||||||
| Additional paid in capital | 37,915,968 | 32,901,105 | ||||||||
| Warrants | 756,942 | 3,155,145 | ||||||||
| Retained deficit | (54,650,338 | ) | (48,211,665 | ) | ||||||
| Total stockholders' deficiency | (15,971,585 | ) | (12,149,769 | ) | ||||||
| Total liabilities and stockholders' deficiency | $ | 5,201,487 | $ | 4,931,160 | ||||||
| Juma Technology Corp. and Subsidiaries | ||||||||||||||||
| Condensed Consolidated Statements of Operations | ||||||||||||||||
| For the three and six months ended June 30, | ||||||||||||||||
| Three months ended June 30, 2010 |
Three months ended June 30, 2009 |
Six months ended June 30, 2010 | Six months ended June 30, 2009 | |||||||||||||
| Sales | $ | 3,434,279 | $ | 3,391,130 | $ | 5,747,184 | $ | 8,040,682 | ||||||||
| Cost of goods sold | 2,453,460 | 2,308,627 | 4,161,572 | 5,633,087 | ||||||||||||
| Gross margin | 980,819 | 1,082,503 | 1,585,612 | 2,407,595 | ||||||||||||
| Operating expenses | ||||||||||||||||
| Selling | 404,891 | 397,172 | 910,791 | 772,988 | ||||||||||||
| Research and development | 71,472 | 123,241 | 118,828 | 256,599 | ||||||||||||
| General and administrative | 1,277,043 | 2,764,944 | 2,958,744 | 4,243,623 | ||||||||||||
| Total operating expenses | 1,753,406 | 3,285,357 | 3,988,363 | 5,273,210 | ||||||||||||
| (Loss) from operations | (772,587 | ) | (2,202,854 | ) | (2,402,751 | ) | (2,865,615 | ) | ||||||||
| Amortization of discount on notes | (989,284 | ) | (2,611,036 | ) | (2,548,038 | ) | (3,041,580 | ) | ||||||||
| Interest (expense), net | (474,065 | ) | (305,260 | ) | (891,579 | ) | (613,127 | ) | ||||||||
| (Loss) before income taxes | (2,235,936 | ) | (5,119,150 | ) | (5,842,368 | ) | (6,520,322 | ) | ||||||||
| Provision for income taxes | - | 4,534 | 5,078 | 7,449 | ||||||||||||
| Net (loss) | $ | (2,235,936 | ) | $ | (5,123,684 | ) | $ | (5,847,446 | ) | $ | (6,527,771 | ) | ||||
| Deemed preferred stock dividend | 591,227 | 1,666,667 | 591,227 | 7,266,107 | ||||||||||||
| Net (loss) attributable to common shareholders | $ | (2,827,163 | ) | $ | (6,790,351 | ) | $ | (6,438,673 | ) | $ | (13,793,878 | ) | ||||
| Basic and diluted net (loss) per share | $ | (0.06 | ) | $ | (0.15 | ) | $ | (0.14 | ) | $ | (0.30 | ) | ||||
| Weighted average common shares outstanding | 46,468,945 | 46,343,945 | 46,468,945 | 46,343,945 | ||||||||||||
| Juma Technology Corp. and Subsidiaries | |||||||||
| Condensed Consolidated Statements of Cash Flows | |||||||||
| For the six months ended June 30, | |||||||||
| 2010 | 2009 | ||||||||
| Operating Activities | |||||||||
| Net (loss) | $ | (5,847,446 | ) | $ | (6,527,771 | ) | |||
| Adjustments to reconcile net (loss) to net cash (used) by operating activities: | |||||||||
| Depreciation expense | 202,340 | 189,974 | |||||||
| Stock option compensation expense | 169,531 | 457,844 | |||||||
| Amortization of discount on notes payable | 2,548,037 | 3,041,580 | |||||||
| Bad debt expense | 101,901 | (130,164 | ) | ||||||
| Amortization of loan costs | 51,410 | 48,910 | |||||||
| Non-current interest expense | - | 300,000 | |||||||
| Early extinguishment of debt | - | 1,116,192 | |||||||
| Warrants issued for services | 42,500 | - | |||||||
| Changes in operating assets and liabilities: | |||||||||
| Accounts receivable | (1,234,817 | ) | 493,904 | ||||||
| Inventory | (2,526 | ) | 175,967 | ||||||
| Prepaid expenses | (36,952 | ) | (18,920 | ) | |||||
| Other current assets | - | 71,922 | |||||||
| Accounts payable and accrued expenses | 345,420 | (517,465 | ) | ||||||
| Deferred revenue | (6,989 | ) | (909,030 | ) | |||||
| Net cash flows (used) by operating activities | (3,667,591 | ) | (2,207,057 | ) | |||||
| Investing Activities | |||||||||
| Acquisition of fixed assets | (39,814 | ) | (39,371 | ) | |||||
| Increase in other assets | - | (42,072 | ) | ||||||
| Net cash flows (used) by investing activities | (39,814 | ) | (81,443 | ) | |||||
| Financing Activities | |||||||||
| Proceeds from issuance of convertible notes payable | 3,000,000 | 4,475,000 | |||||||
| Proceeds from issuance of nonconvertible notes payable | 500,000 | - | |||||||
| Repayment of convertible promissory notes | (388,007 | ) | - | ||||||
| Repayment of capital leases payable | (92,719 | ) | (120,119 | ) | |||||
| Net cash flows provided by financing activities | 3,019,274 | 4,354,881 | |||||||
| Net change in cash | (688,131 | ) | 2,066,381 | ||||||
| Cash, beginning of period | 961,001 | 364,046 | |||||||
| Cash, end of period | $ | 272,870 | $ | 2,430,427 | |||||
| Supplemental Cash Flow Information: | |||||||||
| Interest paid | $ | 118,265 | $ | 146,604 | |||||
| Income taxes paid | 5,078 | 7,449 | |||||||
Contact Information:
CONTACT:
Melissa J. Nacerino
646-291-8264