LOS GATOS, Calif., Nov. 13, 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 and six months ended September 30, 2007.
Financial Highlights for the Three and Six Months Ended September 30, 2007 Compared to the Three and Six Months Ended September 30, 2006:
* Net income of $3,328,361 or $1.85 basic and $1.69 diluted per share, as compared to a net loss of $350,610 or $0.20 per share, basic and diluted, for the three month periods; Net income of $3,471,805 or $1.94 basic and $1.77 diluted per share, as compared to a net loss of $937,303 or $0.55 per share, basic and diluted, for the same six month periods. * Gross profit margin on sales increased to 99% from 84% for the three month periods, and increased to 87% from 81% for the same six month periods. * Revenues totaled $139,803 for the three months ended September 30, 2007, representing a 73% decline from revenues of $511,286 for the three months ended September 30, 2006; Revenues totaled $454,134 for the six months ended September 30, 2007, representing a 52% decline from the same period in the previous fiscal year. * Operating expenses declined 34% to $494,277 from $749,267 for the three month periods, and declined 43% to $967,551 from $1,687,153 for the six month periods. * As of September 30, 2007, cash and cash equivalents totaled $486,595, a net increase of $181,007 from March 31, 2007, and total stockholders' equity was $6,674,358, an increase of $3,812,048 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 over $3,000,000 in net income this quarter (albeit from a non-operating gain from the license sold to Innofone, as described in more detail in the paragraph below), versus a net loss for the same quarter last year. Additionally, our operating expenses continue to decline and we had an increase in cash of almost $200,000 this quarter, as opposed to a cash decrease. These improvements reflect management's continued diligence in reducing overhead and streamlining the organization and its products and services."
LaPine continued: "In the second quarter of fiscal 2008 we completed a non-exclusive royalty free license of our HipLink and Clickmarks software applications to Innofone.com, Incorporated. This transaction resulted in non-operating gain of approximately $3,700,000, which is reflected in our second quarter financials as other income. The license fee was paid in full by Innofone through the issuance of shares of Innofone restricted common stock containing certain registration rights. Innofone is currently traded under the symbol IMEN.PK. Revenue for the quarter was lower than in the same period of the previous fiscal year, due in part to the recent sale of our financial data software and services to Stockgroup, but current sales activity remains high and the sales pipeline is populated with numerous opportunities, which are being vigorously pursued. In addition, Semotus has continued to actively recruit 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 continuing to aggressively pursue 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. We are in various stages of discussion and negotiation with a number of entities. 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; http://www.xb.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.