Message #18 From:
Stock News Bot Date: November 3, 2005 02:00:00 AM
TMAM News Time America Announces First Quarter Results
SCOTTSDALE, Ariz.--(BUSINESS WIRE)--Nov. 3, 2005--Time America Inc. (OTCBB: TMAM), a leading developer and marketer of time and labor management solutions, today announced unaudited financial results for its fiscal first quarter ended Sept. 30, 2005.
Revenue for the quarter ended Sept. 30, 2005, was $1,470,813, a 1% increase over revenue of $1,453,825 in the year-ago quarter. The net loss from operations for the quarter ended Sept. 30, 2005, was $573,229, compared to a net loss from operations of $99,582 for the year-ago quarter. The net loss for the quarter ended Sept. 30, 2005, was $712,275, or $.05 per basic and diluted share, compared to a net loss of $192,331, or $.01 per basic and diluted share for the year-ago quarter.
Significant events during the quarter that affected our results of operations included the following:
-- The company received a contract to provide a custom software and hardware solution to a Fortune 100 company. The company is accounting for the software portion of the contract using the percentage of completion method for long-term contracts. The estimated costs for development of the software exceed our revenues for the software and the company recorded an estimated loss of approximately $50,000 for the software portion of this contract in the quarter. The total contract is for $2,150,000, of which $378,000 in purchase orders have been received. The company expects to achieve a gross profit on the contract in whole as it is fulfilled over the next year.
-- The company shipped the first units of its new TA7000 series data collection device during the quarter. The TA7000 series is a family of advanced data collection devices that track and communicate HR, payroll, time and attendance, MRP and ERP information for industries such as manufacturing, distribution and access control. The company will be producing its first large run of devices in November and during the quarter purchased approximately $220,000 in inventory for the November production run.
-- The company adopted Financial Accounting Standards Boards Statement No. 123 ("SFAS 123(R)") "Share-Based Payment" in the current quarter. SFAS 123(R) requires all share-based payments to employees and board members, including the grants of stock options, to be recognized in the income statement based on their fair values. The company previously presented this expense as a pro forma disclosure. A non-cash expense of $85,000 was recognized under SFAS 123(R) in the quarter.
-- The company amended the conversion price of an existing convertible note with Laurus Master Funds to facilitate the conversion of $250,000 under the note. The conversion price was reduced to $0.56 per share from $0.65 per share. The company agreed to amend the conversion price to avoid making any scheduled payments in the quarter ending Dec. 31, 2005, in cash. In connection with the amendment, the company recorded a non-cash charge of $40,000 in the current quarter.
"The revenue in fiscal Q1 2006 was negatively impacted by poor performance in July in both our reseller and direct channels as order flows were less than projected. This contributed to the minimal revenue growth experienced in the quarter. I am pleased to report that new orders received in the quarter were approximately $300K higher than recorded revenue and will be recognized in future periods as the work is completed," stated Thomas Bednarik, president and CEO of Time America.
The company added 10 new resellers in the quarter and initiated a partnership with Aon Consulting to private brand the company's NETtime Web-based software solution. The mix of revenue in the most recent quarter was comprised of 59% from channel operations and 41% from direct sales. Recurring revenue from the company's NETtime hosted solution increased 71% over the prior year's quarter.
The company will hold a conference call today at 4:30 p.m. EST to discuss its first fiscal quarter results. To participate, call 800-253-6872 and enter ID code 6663305 five minutes prior to the start of the call. The call will also be archived on the Time America Web site at www.timeamerica.com.
About Time America Inc.
Time America Inc. has been providing innovative time and labor management solutions since 1988. By leveraging innovative technology, the company's family of software and hardware solutions helps organizations track and transform basic labor data into strategic information that improves workforce productivity and the utilization of labor resources. Time America solutions are used by more than 20,000 companies worldwide including ARAMARK Corp., Thrifty Rental Car, the Texas Legislative Council and the Mesa Air Group. The Deloitte Technology Fast 500 honored Time America as one of the 500 fastest growing technology companies in North America for 2004 and 2003.
Certain information and comments contained in this press release may be forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Factors set forth in the company's Annual Report on Form 10-KSB for the fiscal year ended June 30, 2005, together with other factors that appear in this press release or in the company's other Securities and Exchange Commission filings could affect the company's actual results and could cause the company's actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of the company, in this press release.
This release and prior releases are available on the company's World Wide Web site at www.timeamerica.com.
NETtime is a registered trademark of Time America Inc. All other names are the property of their respective owners.
TIME AMERICA INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
Sept. 30, June 30,
2005 2005
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(Unaudited)
ASSETS
Current Assets:
Cash and cash equivalents $644,797 $1,361,717
Accounts receivable - trade, net 1,528,321 1,479,526
Inventory 597,920 477,719
Prepaid expenses and other current assets 287,607 268,373
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Total Current Assets 3,058,645 3,587,335
Property and equipment, net 409,749 374,269
Other Assets 276,074 330,882
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Total Assets $3,744,468 $4,292,486
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current Liabilities:
Current portion of long-term debt $951,636 $998,061
Accounts payable 478,754 423,396
Accrued liabilities 606,032 436,180
Deferred revenue 869,710 877,782
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Total Current Liabilities 2,906,132 2,735,419
Long-term debt, less current portion 1,961,771 2,210,592
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Total Liabilities 4,867,903 4,946,011
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Commitments: - -
Stockholders' Equity (Deficit):
Common stock, $.005 par value, 50,000,000
shares authorized, 14,651,981 and
14,251,552 shares issued and outstanding 73,261 71,258
Contributed capital 9,509,860 9,269,497
Accumulated deficit (10,706,556) (9,994,280)
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Total Stockholders' Equity (Deficit) (1,123,435) (653,525)
------------ -----------
Total Liabilities and Stockholders'
Equity (Deficit) $3,744,468 $4,292,486
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TIME AMERICA INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
Sept. 30,
2005 2004
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Revenues:
Product sales $1,017,564 $998,930
Services revenue 453,249 454,895
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Total Revenues 1,470,813 1,453,825
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Cost of Revenues:
Product 534,431 398,732
Services 212,759 167,221
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Total Cost of Revenues 747,190 565,953
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Gross Profit 723,623 887,872
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Costs and Expenses:
Sales and marketing 594,356 464,103
Research and development 364,616 287,772
General and administrative 337,880 235,579
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Total Costs and Expenses 1,296,852 987,454
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Net Loss from Operations (573,229) (99,582)
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Other Income (Expense):
Interest expense (176,416) (98,511)
Other 31,504 -
Interest income 5,866 5,762
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(139,046) (92,749)
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Net Loss $(712,275) $(192,331)
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Basic Loss per Share $(0.05) $(0.01)
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Weighted Average Number of Shares Outstanding 14,262,077 13,600,188
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