SOURCE: Juma Technology Corp

Juma Technology Corp

March 29, 2010 17:00 ET

Juma Technology Announces 2009 Year End Earnings

FARMINGDALE, NY--(Marketwire - March 29, 2010) - Juma Technology Corp. (OTCBB: JUMT), a leading IP Convergence firm specializing in managed services, today reported financial results for the full year ended December 31, 2009.

Full Year End Highlights

-- Selling expenses decreased 14% over 2008
-- General and administrative expenses decreased 4% over 2008
-- Increase in gross margin of 1% over 2008
-- 2009 Revenue: $13,096,702

Operating Results

Revenues for the year ended December 31, 2009 decreased $8,273,990 or 39% to $13,096,702, compared with revenues of $21,370,692 for the year ended December 31, 2008. Gross margin for the year ended December 31, 2009 increased $49,641 or 1% to $3,901,037, compared to $3,851,396 for the year ended December 31, 2008. The Company experienced a net loss of $12,404,694 for the year ended December 31, 2009 compared to a net loss of $9,031,143 for the year ended December 31, 2008.

"The economic downturn has certainly affected our company and its year end earnings for 2009," said Anthony M. Servidio, Chief Executive Officer for Juma. "The good news is that these difficult times will not last forever, and we see solid potential in our core business coupled with enormous growth in the managed services marketplace for our Nectar software solutions."

Anthony Fernandez, Chief Financial Officer for Juma, said, "The company continues to streamline operations while staying focused on maintaining and improving its gross margins. In addition, Nectar's revenues are beginning to grow and the effects of this growth will become evident in both margins and profits."

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
                        Consolidated Balance Sheets

                                                  December 31, December 31,
                                                      2009         2008
                                                  -----------  -----------

ASSETS
Current assets:
Cash                                              $   961,001  $   364,046
Accounts receivable, (net of allowance of
 $213,471 and $391,501, respectively)               2,175,034    2,792,483
Inventory                                             161,770      254,531
Prepaid expenses                                       26,837       17,561
Other current assets                                  133,889      196,922
                                                  -----------  -----------
  Total current assets                              3,458,531    3,625,543

Fixed assets, (net of accumulated depreciation of
 $827,839 and $439,457, respectively)               1,224,120    1,512,535

Other assets                                          248,509      302,856
                                                  -----------  -----------
  Total assets                                    $ 4,931,160  $ 5,440,934
                                                  ===========  ===========

LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities:
Notes payable                                     $   297,486  $   297,242
Convertible notes payable, (net of discount of
 $604,435 and plus premium of  $93,669,
 respectively)                                     12,099,346    1,493,669
Current portion of capital leases payable             174,115      209,413
Accounts payable                                    2,022,532    2,809,419
Accrued expenses and taxes payable                  1,685,810      615,939
Deferred revenue                                       76,174    1,021,914
                                                  -----------  -----------
  Total current liabilities                        16,355,463    6,447,596

Capital leases payable, net of current maturities      25,466      199,582
Notes payable                                               -       43,818
Convertible notes payable, (net of discount of $0
 and $267,216, respectively)                          700,000    5,732,784
Other liabilities                                           -            -
                                                  -----------  -----------
  Total liabilities                                17,080,929   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 and 46,343,945
 shares issued and outstanding, respectively            4,646        4,634
Additional paid in capital                         32,901,105   21,225,245
Warrants                                            3,155,145      327,139
Retained deficit                                  (48,211,665) (28,540,864)
                                                  -----------  -----------
  Total stockholders' deficiency                  (12,149,769)  (6,982,846)
                                                  -----------  -----------
  Total liabilities and stockholders' deficiency  $ 4,931,160  $ 5,440,934
                                                  ===========  ===========




                  Juma Technology Corp. and Subsidiaries
                   Consolidated Statements of Operations
                         Year Ended December 31,

                                                    2009          2008
                                                ------------  ------------
Net Sales                                       $ 13,096,702  $ 21,370,692
Cost of goods sold                                 9,195,665    17,519,296
                                                ------------  ------------
Gross margin                                       3,901,037     3,851,396
                                                ------------  ------------

Operating expenses
Selling                                            1,587,028     1,847,217
Research and development                             372,023       777,480
Goodwill impairment                                        -       204,600
General and administrative                         8,198,930     8,514,228
                                                ------------  ------------
Total operating expenses                          10,157,981    11,343,525
                                                ------------  ------------

(Loss) from operations                            (6,256,944)   (7,492,129)

Amortization of discount on notes                 (4,803,656)     (684,846)
Interest (expense), net                           (1,333,507)     (832,157)
                                                ------------  ------------

(Loss) before income taxes                       (12,394,107)   (9,009,132)
Provision for income taxes                            10,587        22,011

                                                ------------  ------------
Net (loss)                                      $(12,404,694) $ (9,031,143)
Deemed preferred stock dividend                    7,266,107     1,739,316
                                                ------------  ------------
Net (loss) attributable to common shareholders  $(19,670,801) $(10,770,459)
                                                ============  ============

Basic and diluted net (loss) per share          $      (0.42) $      (0.24)
                                                ============  ============
Weighted average common shares outstanding        46,402,507    44,677,516
                                                ============  ============

Contact Information

  • Contact:
    Juma Technology Corp.
    Melissa J. Nacerino
    646-291-8264
    Email Contact