-- Research and development expenses decreased 75% over Q3 2008
-- General and administrative expenses decreased 47% over Q3 2008
-- Selling expenses decreased 17% over Q3 2008
-- Q3 2009 Revenue $1,896,250
Operating Results
Revenues for the three months ended September 30, 2009 decreased $3,929,059
or 67% to $1,896,250, compared with revenues of $5,825,309 for the three
months ended September 30, 2008. Cost of goods sold for the three months
ended September 30, 2009 decreased $2,961,135 or 75% to $1,004,817,
compared to $3,965,952 for the three months ended September 30, 2008. The
Company incurred a net loss of $2,751,311 for the three months ended
September 30, 2009 compared to a net loss of $2,712,221 for the comparable
period in 2008.
"Our company is not immune to the economic storm that has wreaked havoc on
the marketplace, but we are certainly weathering the storm and continuing
to build a solid foundation for future growth," said Anthony M. Servidio,
Chief Executive Officer for Juma. "The silver lining is our future
potential, and it is significant. We continue to sign on reseller partners
for our Nectar services, which will grow our monthly recurring revenue
stream and enable us to execute on our business plans. That's our focus.
That's our goal. And that is what will drive our company to new sales,
additional revenue and business success," said Servidio.
Anthony Fernandez, Chief Financial Officer for Juma, added, "We are
steadfast in our commitment to improving operational efficiencies and
reducing expenses while we live through this poor economy and plan to
capitalize on what we believe will be a market rebound in the near future."
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.
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Juma Technology Corp. and Subsidiaries
Condensed Consolidated Balance Sheets
September 30, December 31,
2009 2008
(Unaudited) (Audited)
--------------- ---------------
ASSETS
Current assets:
Cash $ 1,774,299 $ 364,046
Accounts receivable, (net of allowance
of $249,986 and $391,501,
respectively) 2,547,029 2,792,483
Inventory 180,457 254,531
Prepaid expenses 40,984 17,561
Other current assets 133,889 196,922
--------------- ---------------
Total current assets 4,676,658 3,625,543
Fixed assets, (net of accumulated
depreciation of $727,950 and $439,457,
respectively) 1,310,763 1,512,535
Other assets 272,183 302,856
--------------- ---------------
Total assets $ 6,259,604 $ 5,440,934
=============== ===============
LIABILITIES AND STOCKHOLDERS'
DEFICIENCY
Current liabilities:
Notes payable $ - $ 297,242
Convertible notes payable, (net of
discount of $810,218 and plus premium
of $93,669, respectively) 6,518,424 1,493,669
Current portion of capital leases
payable 185,517 209,413
Accounts payable 1,803,731 2,809,419
Accrued expenses and taxes payable 608,174 615,939
Deferred revenue 283,534 1,021,914
--------------- ---------------
Total current liabilities 9,399,380 6,447,596
Capital leases payable, net of current
maturities 58,497 199,582
Notes payable - 43,818
Convertible notes payable, (plus
premium of $48,053 and net of
discount of $267,216,
respectively) 5,951,947 5,732,784
Other liabilities 600,000 -
--------------- ---------------
Total liabilities 16,009,824 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 46,468,945 shares issued and
outstanding, respectively 4,646 4,634
Additional paid-in capital 32,360,906 21,225,245
Warrants 2,969,281 327,139
Retained deficit (45,086,053) (28,540,864)
--------------- ---------------
Total stockholders' deficiency (9,750,220) (6,982,846)
--------------- ---------------
Total liabilities and stockholders'
deficiency $ 6,259,604 $ 5,440,934
=============== ===============
Juma Technology Corp. and Subsidiaries
Condensed Consolidated Statements of Operations
For the three and nine months ended September 30,
Three months Three months Nine months Nine months
ended ended ended ended
September 30, September 30, September 30, September 30,
2009 2008 2009 2008
----------- ----------- ------------ ------------
Sales $ 1,896,250 $ 5,825,309 $ 9,936,932 $ 15,436,935
Cost of goods sold 1,004,817 3,965,952 6,637,904 11,539,452
----------- ----------- ------------ ------------
Gross margin 891,433 1,859,357 3,299,028 3,897,483
----------- ----------- ------------ ------------
Operating expenses
Selling 387,970 348,972 1,160,958 1,406,077
Research and
development 59,136 239,581 315,735 629,103
Goodwill
impairment - - - 204,600
General and
administrative 1,871,910 3,564,999 6,115,533 8,186,773
----------- ----------- ------------ ------------
Total operating
expenses 2,319,016 4,153,552 7,592,226 10,426,553
----------- ----------- ------------ ------------
(Loss) from
operations (1,427,583) (2,294,195) (4,293,198) (6,529,070)
Amortization of
discount on notes (984,286) (107,078) (4,025,866) (655,538)
Interest
(expense), net (339,249) (290,636) (952,376) (633,677)
----------- ----------- ------------ ------------
(Loss) before
income taxes (2,751,118) (2,691,909) (9,271,440) (7,818,285)
(Benefit)/Provision
for income taxes 193 20,312 7,642 22,011
----------- ----------- ------------ ------------
Net (loss) $(2,751,311) $(2,712,221) $ (9,279,082) $ (7,840,296)
Deemed preferred
stock dividend - - 7,266,107 1,112,200
----------- ----------- ------------ ------------
Net (loss)
attributable to
common
shareholders $(2,751,311) $(2,712,221) $(16,545,189) $ (8,952,496)
=========== =========== ============ ============
Basic and diluted
net (loss) per
share attributable
to common
shareholders $ (0.06) $ (0.06) $ (0.36) $ (0.20)
=========== =========== ============ ============
Weighted average
common shares
outstanding 46,452,641 44,718,084 46,380,575 44,206,378
=========== =========== ============ ============
Contact Information: CONTACT: Juma Technology Corp. Melissa J. Nacerino 646-291-8264