Message #7 From:
Stock News Bot Date: February 13, 2007 04:00:00 AM
DLK News Semotus Announces Third Quarter 2007 Results
LOS GATOS, Calif.--(BUSINESS WIRE)--Semotus Solutions, Inc. (AMEX:DLK), an innovative leader of software solutions for enterprise mobility, today announced its financial results for the three and nine months ended December 31, 2006.
Financial Highlights for the Three and Nine Months Ended December 31, 2006 Compared to the Three and Nine Months Ended December 31, 2005:
Operating expenses declined 29% to $613,587 for the three month period, and declined 13% to $2,300,647 for the nine month period.
Revenues totaled $348,317, representing a 49% decline from revenues for the three-month period of the previous fiscal year, and totaled $1,296,291 for the nine month period, representing a 30% decline from revenues from the previous fiscal year.
Net loss increased 25% to $323,714 for the three month period, and increased 20% to $1,261,017 for the nine month period; however the loss before accounting for stock net loss per share remained constant at $0.01 loss per basic and diluted share for the three month periods and $0.04 loss per basic and diluted share for the nine month periods.
As of December 31, 2006, cash and cash equivalents totaled $711,387; net trade receivables were $256,301; available working capital was $136,493; and total stockholders' equity was $3,556,161.
Commenting on the Company's operations, Anthony LaPine, Chairman and CEO of Semotus, noted, “Although our major focus in this fiscal quarter has been devoted to solidifying the Citytalk merger, we are gratified to report substantial improvement in reducing operating expenses. Semotus reduced R&D spending by 66% from $309,565 to $104,957 and G&A was reduced 35% from $310,770 to $201,531. Revenues were negatively impacted due in part to purchasing delays related to the pending merger with Citytalk. We anticipate revenues will recover once the Citytalk merger is complete." Continuing, LaPine said, “Semotus has recently hired a number of new sales personnel, which should bring more momentum to our direct sales efforts. Current sales activity remains high and our sales pipeline reflects significant opportunities which are being vigorously pursued.”
“In addition, we are currently in negotiations with Citytalk to extend certain deadlines related to the merger with Citytalk and its $60 million financing. We continue to devote significant effort to completing the pending merger with Citytalk, and hope to have a proxy out soon to our shareholders,” concluded LaPine.
About Semotus Solutions, Inc.
Founded in 1993, Semotus Solutions (AMEX:DLK) isa provider of software for the mobile enterprise, connecting people 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, 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, please visit the following web sites: www.semotus.com; www.hiplinkwireless.com; www.clickmarks.com; 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.
