-- Record revenue of $21,370,692 for the year
-- Increase in revenue of 70% over 2007
-- Increase in gross margin of 154% over 2007
Operating Results
Revenues for the year ended December 31, 2008 increased $8,783,689 or 70%
to $21,370,692, compared with revenues of $12,587,003 for the year ended
December 31, 2007. Gross margin for the year ended December 31, 2008
increased $2,335,325 or 154% to $3,851,396, compared to $1,516,071 for the
year ended December 31, 2007. The Company experienced a net loss of
$9,031,143 for the year ended December 31, 2008 compared to a net loss of
$15,861,359 for the year ended December 31, 2007.
"Juma's impressive year end earnings represent a strong validation for our
company, its vision and our ability to execute flawlessly on our business
plan," said Anthony M. Servidio, Chairman and Chief Executive Officer.
"Our enormous growth and progress during these tough economic times is a
true accomplishment. Every day, we continue to add new customers, sign on
additional reseller partners, and increase our market presence and sales
reach," said Servidio.
"Our 2008 financial performance is extremely encouraging," said Anthony
Fernandez, Chief Financial Officer. "We continue to improve operational
efficiencies, increase our gross margin and reduce our overall net loss."
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, particularly for multi-location
businesses. 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., 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.
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
Consolidated Balance Sheets
December 31
2008 2007
----------- -----------
ASSETS
Current assets:
Cash $ 364,046 $ 302,889
Accounts receivable, (net of allowance of
$391,501 and $0, respectively) 2,792,483 3,775,360
Inventory 254,531 184,357
Prepaid expenses 17,561 100,180
Other current assets 196,922 112,726
----------- -----------
Total current assets 3,625,543 4,475,512
Fixed assets, (net of accumulated depreciation
of $439,457 and $540,344, respectively) 1,512,535 1,686,189
Other assets 302,856 301,025
----------- -----------
Total assets $ 5,440,934 $ 6,462,726
=========== ===========
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities:
Notes payable $ 297,242 $ -
Convertible notes payable, (plus premium of
$93,669 and net of discount of $219,444,
respectively) 1,493,669 905,556
Current portion of capital leases payable 209,413 196,720
Accounts payable 2,809,419 2,564,353
Accrued expenses and taxes payable 615,939 552,006
Deferred revenue 1,021,914 654,032
----------- -----------
Total current liabilities 6,447,596 4,872,667
Capital leases payable, net of current
maturities 199,582 397,256
Notes payable 43,818 -
Convertible notes payable, (net of discount of
$267,216 and $484,376, respectively) 5,732,784 3,615,624
----------- -----------
Total liabilities 12,423,780 8,885,547
----------- -----------
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
0 shares issued and outstanding, respectively 167 -
Common stock, $0.0001 par value, 900,000,000
shares authorized, 46,343,945 and 43,943,950
shares issued and outstanding, respectively 4,634 4,394
Additional paid in capital 21,225,245 12,392,675
Warrants 327,139 2,949,682
Retained deficit (28,540,864) (17,770,405)
----------- -----------
Total stockholders' deficiency (6,982,846) (2,422,821)
----------- -----------
Total liabilities and stockholders'
deficiency $ 5,440,934 $ 6,462,726
=========== ===========
Juma Technology Corp. and Subsidiaries
Consolidated Statements of Operations
Year Ended December 31,
2008 2007
------------- -------------
New sales $ 21,370,692 $ 12,587,003
Cost of goods sold 17,519,296 11,070,932
------------- -------------
Gross margin 3,851,396 1,516,071
------------- -------------
Operating expenses
Selling 1,847,217 2,974,417
Research and development 777,480 642,398
Goodwill impairment 204,600 1,569,480
Consulting - 890,000
General and administrative 8,514,228 6,458,352
------------- -------------
Total operating expenses 11,343,525 12,534,647
------------- -------------
(Loss) from operations (7,492,129) (11,018,576)
Amortization of discount on notes (684,846) (4,840,114)
Interest (expense), net (832,157) (223,012)
------------- -------------
(Loss) before income taxes (9,009,132) (16,081,702)
Provision/(Benefit) for income taxes 22,011 (220,343)
------------- -------------
Net (loss) $ (9,031,143) $ (15,861,359)
Deemed preferred stock dividends 1,739,316 -
------------- -------------
Net (loss) attributable to common
shareholders $ (10,770,459) $ (15,861,359)
============= =============
Basic and diluted net (loss) per share $ (0.24) $ (0.37)
============= =============
Weighted average common shares outstanding 44,677,516 42,492,069
============= =============
Contact Information: Contact: Juma Technology Corp. Melissa J. Nacerino 646-291-8264