-- Gross margin increased 3% over Q2 2008
-- Selling expenses decreased 26% over Q2 2008
-- Research and development expenses decreased 41% over Q2 2008
Operating Results
Revenues for the three months ended June 30, 2009 decreased $1,583,617 or
32% to $3,391,130, compared with revenues of $4,974,747 for the three
months ended June 30, 2008. Gross margin for the three months ended June
30, 2009 increased $27,157 or 3% to $1,082,503, compared to $1,055,346 for
the three months ended June 30, 2008. The Company incurred a net loss of
$5,123,684 for the three months ended June 30, 2009 compared to a net loss
of $2,636,836 for the comparable period in 2008. Included in the net loss
of $5,123,684 was $2,611,036 related to amortization of discounts on notes.
"Despite this tough economy, our Company has maintained respectable revenue
numbers while improving margins and reining in operating expenses," said
Anthony M. Servidio, Chief Executive Officer for Juma. "While our main
objective is always to grow revenue, create new clients and broaden our
business opportunities, we are also savvy to the fact that improving
margins and keeping expenses down are equally important. Our team
continues to build a solid Company with magnificent potential. We are
extremely excited about the positive momentum and what the future holds."
Anthony Fernandez, Chief Financial Officer for Juma, added, "Although
revenue figures were slightly lower than last year, we have been able to
retain our margins while weathering the overall economic conditions."
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., 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
June 30, December 31,
2009 2008
(Unaudited) (Audited)
------------- -------------
ASSETS
Current assets:
Cash $ 2,430,427 $ 364,046
Accounts receivable, (net of allowance of
$261,340 and $391,501, respectively) 2,428,743 2,792,483
Inventory 78,564 254,531
Prepaid expenses 36,481 17,561
Other current assets 125,000 196,922
------------- -------------
Total current assets 5,099,215 3,625,543
------------- -------------
Fixed assets, (net of accumulated
depreciation of $629,431 and $439,457,
respectively) 1,361,932 1,512,535
Other assets 296,018 302,856
------------- -------------
Total assets $ 6,757,165 $ 5,440,934
============= =============
LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities:
Notes payable $ 347,705 $ 297,242
Convertible notes payable, (net of discount
of $1,501,128 and plus premium of $93,669,
respectively) 4,441,372 1,493,669
Current portion of capital leases payable 182,014 209,413
Accounts payable 2,261,998 2,809,419
Accrued expenses and taxes payable 454,229 615,939
Deferred revenue 112,884 1,021,914
------------- -------------
Total current liabilities 7,800,202 6,447,596
Capital leases payable, net of current
maturities 106,862 199,582
Notes payable - 43,818
Convertible notes payable, (plus premium of
$747,722 and net of discount of $267,216,
respectively) 6,747,722 5,732,784
Other liabilities 450,000 -
------------- -------------
Total liabilities 15,104,786 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 31,731,863 21,225,245
Warrants 2,249,624 327,139
Retained deficit (42,334,742) (28,540,864)
------------- -------------
Total stockholders' deficiency (8,347,621) (6,982,846)
------------- -------------
Total liabilities and stockholders'
deficiency $ 6,757,165 $ 5,440,934
============= =============
Juma Technology Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
For the three and six months ended June 30,
Three months Three months Six months Six months
ended ended ended ended
June 30, June 30, June 30, June 30,
2009 2008 2009 2008
------------ ------------ ------------ ------------
Sales $ 3,391,130 $ 4,974,747 $ 8,040,682 $ 9,611,626
Cost of goods sold 2,308,627 3,919,401 5,633,087 7,573,500
------------ ------------ ------------ ------------
Gross margin 1,082,503 1,055,346 2,407,595 2,038,126
------------ ------------ ------------ ------------
Operating expenses
Selling 397,172 536,546 772,988 1,057,105
Research and
development 123,241 207,937 256,599 389,522
Goodwill impairment - - - 204,600
General and
administrative 2,764,944 2,362,709 4,243,623 4,621,774
------------ ------------ ------------ ------------
Total operating
expenses 3,285,357 3,107,192 5,273,210 6,273,001
------------ ------------ ------------ ------------
(Loss) from
operations (2,202,854) (2,051,846) (2,865,615) (4,234,875)
Amortization of
discount on notes (2,611,036) (395,504) (3,041,580) (541,460)
Interest (expense),
net (305,260) (189,187) (613,127) (350,041)
------------ ------------ ------------ ------------
(Loss) before
income taxes (5,119,150) (2,636,537) (6,520,322) (5,126,376)
Provision for
income taxes 4,534 299 7,449 1,699
------------ ------------ ------------ ------------
Net (loss) $ (5,123,684) $ (2,636,836) $ (6,527,771) $ (5,128,075)
Deemed preferred
stock dividend 1,666,667 1,112,200 7,266,107 1,112,200
------------ ------------ ------------ ------------
Net (loss)
attributable to
common
shareholders $ (6,790,351) $ (3,749,036) $(13,793,878) $ (6,240,275)
============ ============ ============ ============
Basic and diluted
net (loss) per
share attributable
to common
shareholders $ (0.15) $ (0.09) $ (0.30) $ (0.14)
============ ============ ============ ============
Weighted average
common shares
outstanding 46,343,945 43,948,950 46,343,945 43,947,741
============ ============ ============ ============
Contact Information: CONTACT: Juma Technology Corp. Melissa J. Nacerino 646-291-8264