LOS GATOS, Calif., Aug. 14, 2007 (PRIME NEWSWIRE) -- Semotus Solutions, Inc. (AMEX:DLK), an innovative leader of software solutions for enterprise mobility, today announced its financial results for the three months ended June 30, 2007.
Financial Highlights for the Three Months Ended June 30, 2007 Compared to the Three Months Ended June 30, 2006:
* Net income of $195,146 or $0.11 basic and $0.09 diluted per
share, as compared to a net loss of $586,693 or $0.35 per
share, basic and diluted for the same period in the previous
fiscal year.
* Gross profit margin on sales increased to 93% from 78% for
the same period in the previous fiscal year.
* Revenues totaled $314,331, representing a 28% decline from
revenues of $436,689 for the same period in the previous year.
* Operating expenses declined 50% to $473,191 from $937,886
for the same period in the previous fiscal year.
* As of June 30, 2007, cash and cash equivalents totaled
$387,975, an increase of $82,387 from March 31, 2007, and
total stockholders' equity was $3,119,746, an increase of
$257,436 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. For instance, we've had a significant turnaround on net income, generating almost $200,000 in net income this quarter versus a net loss for the same quarter last year. Additionally, our gross profit margin on sales has increased to 93%, and our operating expenses have been cut in half. These improvements reflect management's continued diligence in reducing overhead and streamlining the organization and its products and services."
LaPine continued: "In the first quarter of fiscal 2008 we completed the sale of our financial data products, technology and related assets to Stockgroup. The results from this transaction were meaningful and are reflected in our first quarter financials. Although revenue for the quarter was lower than expected, current sales activity remains high and the sales pipeline is populated with numerous opportunities, which are being vigorously pursued. In addition, Semotus has been actively recruiting 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 aggressively pursuing 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. The extension to close the merger with Citytalk expired as of June 28th, and so we are in various stages of discussion and negotiation with a number of other entities. One example of this is the recent transaction with Innofone.com Incorporated. 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, JP Morgan 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.
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.