SOURCE: Juma Technology Corp.

Juma Technology Corp.

November 13, 2009 09:54 ET

Juma Reports Third Quarter 2009 Earnings

FARMINGDALE, NY--(Marketwire - November 13, 2009) - Juma Technology Corp. (OTCBB: JUMT), a leading IP Convergence firm specializing in managed services, today reported financial results for the quarter ended September 30, 2009.

Third Quarter 2009 Highlights

--  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
    Email Contact