-- Revenue increased 1% over Q1 2008
-- Gross margin increased 35% over Q1 2008
-- Selling expenses decreased 28% over Q1 2008
-- Research and development expenses decreased 27% over Q1 2008
-- General expenses decreased 35% over Q1 2008
Operating Results
Revenues for the three months ended March 31, 2009 increased $12,673 or
less than 1% to $4,649,552, compared with revenues of $4,636,879 for the
three months ended March 31, 2008. Gross margin for the three months ended
March 31, 2009 increased $342,312 or 35% to $1,325,092, compared to
$982,780 for the three months ended March 31, 2008. The Company
experienced a net loss of $1,404,087 for the three months ended March 31,
2009 compared to a net loss of $2,491,239 for the comparable period in
2008.
"Without question, we are very happy with our company's results," said
Anthony M. Servidio, Chief Executive Officer. "We are defying the current
economic landscape with proven, sustainable success and positioning
ourselves for phenomenal growth. Our ability to execute consistently, grow
our business and remain completely focused speaks volumes for this
management team and our future potential," said Servidio.
"The first quarter earnings reflect a commitment to cost reduction
initiatives which were instituted in 2008 and continue to be reviewed on a
regular basis. We have also demonstrated the stability of our company in
maintaining sales levels in this difficult environment," said Anthony
Fernandez, Chief Financial Officer.
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
Condensed Consolidated Balance Sheets
March 31, December 31,
2009 2008
(Unaudited) (Audited)
------------ ------------
ASSETS
Current assets:
Cash $ 485,649 $ 364,046
Accounts receivable, (net of allowance of
$293,640 and $391,501, respectively) 3,355,673 2,792,483
Inventory 80,716 254,531
Prepaid expenses 39,593 17,561
Other current assets 125,000 196,922
------------ ------------
Total current assets 4,086,631 3,625,543
Fixed assets, (net of accumulated depreciation
of $532,723 and $439,457, respectively) 1,444,591 1,512,535
Other assets 290,347 302,856
------------ ------------
Total assets $ 5,821,569 $ 5,440,934
============ ============
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities:
Notes payable $ 344,766 $ 297,242
Convertible notes payable, (net of discount of
$410,061 and plus premium of $93,669,
respectively) 2,489,939 1,493,669
Current portion of capital leases payable 192,925 209,413
Accounts payable 2,508,447 2,809,419
Accrued expenses and taxes payable 782,497 615,939
Deferred revenue 920,871 1,021,914
------------ ------------
Total current liabilities 7,239,445 6,447,596
Capital leases payable, net of current
maturities 153,876 199,582
Notes payable - 43,818
Convertible notes payable, (net of discount of
$103,049 and $267,216, respectively) 5,896,952 5,732,784
------------ ------------
Total liabilities 13,290,273 12,423,780
------------ ------------
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
Common stock, $0.0001 par value, 900,000,000
shares authorized, and 46,343,945 shares
issued and outstanding, respectively 4,634 4,634
Additional paid in capital 27,361,513 21,225,245
Warrants 708,540 327,139
Retained deficit (35,544,391) (28,540,864)
------------ ------------
Total stockholders' deficiency (7,468,704) (6,982,846)
------------ ------------
Total liabilities and stockholders'
deficiency $ 5,821,569 $ 5,440,934
============ ============
Juma Technology Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
For the three months ended,
March 31, March 31,
2009 2008
------------ ------------
Sales $ 4,649,552 $ 4,636,879
Cost of goods sold 3,324,460 3,654,099
------------ ------------
Gross margin 1,325,092 982,780
------------ ------------
Operating expenses
Selling 375,816 520,559
Research and development 133,358 181,585
Goodwill impairment 204,600
General and administrative 1,478,679 2,259,065
------------ ------------
Total operating expenses 1,987,853 3,165,809
------------ ------------
(Loss) from operations (662,761) (2,183,029)
Amortization of discount on notes (430,545) (145,956)
Interest (expense), net (307,866) (160,854)
------------ ------------
(Loss) before income taxes (1,401,172) (2,489,839)
Provision for income taxes 2,915 1,400
------------ ------------
Net (loss) $ (1,404,087) $ (2,491,239)
Deemed preferred stock dividend 5,599,440 -
------------ ------------
Net (loss) attributable to common shareholders $ (7,003,527) $ (2,491,239)
============ ============
Basic and diluted net (loss) per share
attributable to common shareholders $ (0.15) $ (0.06)
============ ============
Weighted average common shares outstanding 46,343,945 43,946,506
============ ============
Contact Information: Contact: Juma Technology Corp. Melissa J. Nacerino 646-291-8264