-- Revenues Increased 23% over Q3 2009 -- Research and development expenses decreased 18% over Q3 2009Operating Results: Revenues for the three months ended September 30, 2010 increased $435,395 or 23% to $2,331,645, compared with revenues of $1,896,250 for the three months ended September 30, 2009. Research and development expenses decreased by $10,716 or 18% to $48,420 for the three months ended September 30, 2010, compared to $59,136 for the three months ended September 30, 2009. The Company incurred a net loss of $2,076,236 for the three months ended September 30, 2010 compared to a net loss of $2,751,311 for the three months ended September 30, 2009. "We are forging ahead with positive revenue growth and heightened efficiencies across all of our business units, while simultaneously making significant strides in growing our Nectar software subsidiary," said Anthony M. Servidio, Chief Executive Officer. Anthony Fernandez, Chief Financial Officer for Juma, said, "We are committed to prudent expense management and maximizing our recurring revenue. The overall goal is to continue to drive expenses down and revenues up while focusing on profitability." 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
September 30, December 31,
2010 2009
(Unaudited) (Audited)
------------ ------------
ASSETS
Current assets:
Cash $ 392,857 $ 961,001
Accounts receivable, (net of allowance of
$271,998 and $213,471, respectively) 2,415,252 2,175,034
Inventory 171,789 161,770
Prepaid expenses 44,465 26,837
Other current assets 133,889 133,889
------------ ------------
Total current assets 3,158,252 3,458,531
------------ ------------
Fixed assets, (net of accumulated depreciation
of $1,132,926 and $827,839, respectively) 966,260 1,224,120
Other assets 173,887 248,509
------------ ------------
Total assets $ 4,298,399 $ 4,931,160
============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities:
Notes payable, (net of discount of $165,987 and
$0, respectively) $ 1,613,184 $ 279,172
Convertible notes payable, (plus premium of
$46,769 and net of discount of $604,435,
respectively) 16,016,045 12,099,346
Current portion of capital leases payable 61,166 174,115
Accounts payable 1,626,117 2,022,532
Accrued expenses and taxes payable 154,807 309,962
Accrued interest payable 2,506,280 1,394,162
Deferred revenue 40,071 76,174
------------ ------------
Total current liabilities 22,017,670 16,355,463
Capital leases payable, net of current
maturities 962 25,466
Convertible notes payable - 700,000
------------ ------------
Total liabilities 22,018,632 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, and 46,648,945 shares
issued and outstanding 4,646 4,646
Additional paid in capital 37,972,809 32,901,105
Warrants 1,027,689 3,155,145
Retained deficit (56,726,574) (48,211,665)
------------ ------------
Total stockholders' deficiency (17,720,233) (12,149,769)
------------ ------------
Total liabilities and stockholders'
deficiency $ 4,298,399 $ 4,931,160
============ ============
Juma Technology Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
For the three and nine months ended September 30,
Three Three Nine Nine
months ended months ended months ended months ended
September 30, September 30, September 30, September 30,
2010 2009 2010 2009
------------- ------------- ------------- -------------
Sales $ 2,331,645 $ 1,896,250 $ 8,078,829 $ 9,936,932
Cost of goods
sold 1,498,431 1,004,817 5,660,003 6,637,904
------------- ------------- ------------- -------------
Gross margin 833,214 891,433 2,418,826 3,299,028
------------- ------------- ------------- -------------
Operating
expenses
Selling 413,887 387,970 1,324,678 1,160,958
Research and
development 48,420 59,136 167,248 315,735
General and
administrative 2,009,609 1,871,910 4,968,353 6,115,533
------------- ------------- ------------- -------------
Total operating
expenses 2,471,916 2,319,016 6,460,279 7,592,226
------------- ------------- ------------- -------------
(Loss) from
operations (1,638,702) (1,427,583) (4,041,453) (4,293,198)
Amortization of
premium and
(discount) on
notes, net 40,510 (984,286) (2,507,528) (4,025,866)
Interest
(expense), net (471,013) (339,249) (1,362,592) (952,376)
------------- ------------- ------------- -------------
(Loss) before
income taxes (2,069,205) (2,751,118) (7,911,573) (9,271,440)
Provision for
income taxes 7,031 193 12,109 7,642
------------- ------------- ------------- -------------
Net (loss) $ (2,076,236) $ (2,751,311) $ (7,923,682) $ (9,279,082)
Deemed
preferred
stock dividend - - 591,227 7,266,107
------------- ------------- ------------- -------------
Net (loss)
attributable
to common
shareholders $ (2,076,236) $ (2,751,311) $ (8,514,909) $ (16,545,189)
============= ============= ============= =============
Basic and
diluted net
(loss) per
share $ (0.04) $ (0.06) $ (0.18) $ (0.36)
============= ============= ============= =============
Weighted
average common
shares
outstanding 46,468,945 46,452,641 46,468,945 46,380,575
============= ============= ============= =============
Contact Information: CONTACT: Melissa J. Nacerino 646-291-8264