SOURCE: Juma Technology Corp
Mar 30, 2011 20:31 ET
FARMINGDALE, NY–(Marketwire – March 30, 2011) – Juma Technology Corp. (OTCBB: JUMT), operating through its wholly owned subsidiary Nectar Services Corp., a highly specialized software development company specializing in the monitoring, management and call routing of voice and data networks, today reported financial results for the full year ended December 31, 2010.
Full Year End Highlights
– 2010 Revenue: $1,958,502, an increase of 80%
– Increase in gross margin of 473% over 2009
Operating Results
Due to the sale of Juma Technology Corp’s (“Juma” or the “Company”) IP Convergence business all operating results have been restated to reflect the results of this business as a discontinued operation. As such, the Company’s operating results are those of the software development business:
Revenues for the year ended December 31, 2010 increased $871,930 or 80% to $1,958,502 compared with revenues of $1,086,572 for the year ended December 31, 2009. The increase in revenues was predominantly due to an increase in sales of the Company’s Converged Management Platform due to increased adoption from our sales channel and marketing efforts. Gross margin for the year ended December 31, 2010 increased $674,357 or 473% to $531,788 compared to $(142,569) for the year ended December 31, 2009. The Company experienced a net loss of $10,730,680 for the year ended December 31, 2010 compared to a net loss of $19,670,801 for the year ended December 31, 2009.
“Our Nectar Services revenues nearly doubled in 2010, furthering our resolve to focus exclusively on continuing to grow our software-as-a-service offering in 2011,” said Anthony Servidio, CEO, Juma. “Now that we have closed on our sale of the integration and managed services division to Carousel Industries, we have reengineered the company in order to provide our unique network monitoring and management solutions to enterprises through the channel partners and carriers we continue to bring on board.”
Mr. Servidio continued, “Our recent announcements including partnerships with the Aura Alliance for international coverage in Europe, Asia and Latin America, and CRI here in the US, represent the impact of the additional, ongoing investments in our platform which enhances Avaya, Nortel, Cisco, Juniper, and other network deployments. We are dramatically improving our sales, training and marketing support programs as well, which enables our channel partners and carriers to bring even greater value to their clients and grow revenues. We are very excited about 2011 and the future.”
Anthony Fernandez, CFO of Juma, stated, “The sale of the original Juma business was inevitable. While it gave us a solid foundation to develop our software tools, once developed it created conflict with Nectar’s sales channel. The Juma business also had significant working capital needs which we have now eliminated. Our investors and note holders originally invested and will continue to invest in Nectar as they see the potential in the products, the team and the company going forward.”
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.
About Nectar (www.nectarservices.com)
Nectar Services Corp. is an IP communications software firm specializing in managed services for voice and data networks. Nectar, a wholly-owned subsidiary of Juma Technology Corp (OTCBB: JUMT), maintains a suite of service platforms: the Converged Management Platform (CMP) and Enterprise Session Management (ESM). The Nectar offerings preserve investments in existing telecommunications systems while transitioning to IP, and provide advanced monitoring and management for complex networks. These innovative solutions deliver significant cost savings, inherent business continuity, intelligent call routing and the centralization of both applications and management.
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, December 31,
2010 2009
———– ———–
ASSETS
Current assets:
Cash $ 452,897 $ 961,001
Accounts receivable, (net of allowance of
$264,271 and $213,471, respectively) 1,818,844 2,175,034
Inventory – 161,770
Prepaid expenses 21,777 26,837
Other current assets 126,171 133,889
———– ———–
Total current assets 2,419,689 3,458,531
———– ———–
Fixed assets, (net of accumulated depreciation
of $1,235,426 and $827,839, respectively) 870,971 1,224,120
Intangible assets 62,789 62,789
Other assets 98,805 185,720
———– ———–
Total assets $ 3,452,254 $ 4,931,160
=========== ===========
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY
Current liabilities:
Notes payable, (net of discount of $23,199 and
$0, respectively) $ 3,555,972 $ 279,172
Convertible notes payable, (plus premium of
$27,227 and net of discount of $604,435,
respectively) 15,895,120 12,099,346
Current portion of capital leases payable 25,466 174,115
Accounts payable 823,535 2,022,532
Accrued expenses and taxes payable 232,895 446,454
Accrued interest payable 2,627,142 1,257,670
Deferred revenue 120,301 76,174
———– ———–
Total current liabilities 23,280,431 16,355,463
Capital leases payable, net of current
maturities – 25,466
Convertible notes payable – 700,000
———– ———–
Total liabilities 23,280,431 17,080,929
———– ———–
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
Series C Preferred Stock, $0.0001 par value,
10,000,000 shares authorized,
1,970,756 and 0 shares issued and outstanding,
respectively 197 -
Common stock, $0.0001 par value, 900,000,000
shares authorized, and 46,648,945 shares issued
and outstanding, respectively 4,646 4,646
Additional paid in capital 37,950,324 32,901,105
Warrants 1,158,001 3,155,145
Retained deficit (58,942,345) (48,211,665)
———– ———–
Total stockholders’ deficiency (19,828,177) (12,149,769)
———– ———–
Total liabilities and stockholders’
deficiency $ 3,452,254 $ 4,931,160
=========== ===========
Juma Technology Corp. and Subsidiaries
Consolidated Statements of Operations
Year Ended December 31,
2010 2009
————- ————-
Sales $ 1,958,502 $ 1,086,572
Cost of goods sold 1,426,714 1,229,141
————- ————-
Gross margin 531,788 (142,569)
————- ————-
Operating expenses
Selling 708,093 423,169
Research and development 223,036 372,023
General and administrative 4,177,274 5,433,101
————- ————-
Total operating expenses 5,108,403 6,228,293
————- ————-
(Loss) from operations (4,576,615) (6,370,862)
Amortization of premium and (discount) on
notes, net (2,638,349) (4,803,656)
Interest (expense), net (1,965,260) (1,333,507)
————- ————-
(Loss) from continuing operations before
income taxes (9,180,224) (12,508,025)
Provision for income taxes 14,111 10,587
————- ————-
(Loss) from continuing operations (9,194,335) (12,518,612)
Income (loss) from discontinued operations,
net of income taxes (Note 2) (945,118) 113,918
————- ————-
Net (loss) (10,139,453) (12,404,694)
Deemed preferred stock dividend 591,227 7,266,107
————- ————-
Net (loss) attributable to common
shareholders $ (10,730,680) $ (19,670,801)
============= =============
Basic and diluted net (loss) per share:
(Loss) from continuing operations $ (0.20) $ (0.27)
Income (loss) from discontinued operations (0.02) -
Net (loss) attributable to common
shareholders (0.23) (0.42)
Weighted average common shares outstanding 46,468,945 46,402,507
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