SOURCE: SUMOTEXT, Inc.

January 05, 2010 13:59 ET

SUMOTEXT, Inc. Reports First Quarter 2010 Results

LITTLE ROCK, AR--(Marketwire - January 5, 2010) - SUMOTEXT, Inc. (OTCBB: SMXI), a fully reporting public company and a leading short code application provider, announced its results for the three months ended November 30, 2009.

Revenue for the first quarter was $270,568, an increase of 65% when compared to the prior quarter and an increase of 167% when compared to the same three-month period one year ago. Net loss for the first quarter was $112,387, a decrease in net loss of 36% when compared to the prior quarter and a decrease in net loss of 40% when compared to same three-month period one year ago.

The Company's President, Timothy Miller, said, "While revenue for the quarter was strong, our Base Recurring Monthly Subscription Plan Fees metric remains the most accurate method to measure our core growth from period to period."

Base Recurring Monthly Subscription Plan Fees that were scheduled for the second quarter were $91,242, a 13% increase when compared to the $79,752 in Base Recurring Monthly Subscription Plan Fees that were scheduled entering the first quarter. Historically, Base Recurring Monthly Subscription Plan Fees scheduled for the prior four quarters have grown sequentially from $41,635, to $62,459, to $79,752, to $91,242.

Mr. Miller added, "January 8, 2010 will mark the two year anniversary of our first client signing. While we enter this New Year with a growing and diversified roster of over 500 clients, we continue to refine our sales and marketing models and develop new strategies to equip and monitor the success of our new and existing clients. Despite the challenges inherent to a nascent industry, we believe more than ever that short codes will become the predominate method to reward consumers with mobile coupons and VIP access to private sales -- as well build valuable customer profiles and collect customer feedback and comments. As traditional mass marketing channels continue to give ground to targeted, interactive channels, the mobile phone has become the linchpin that tethers multimedia, social networking, and commerce. Our technology, brand visibility, and client references have us well positioned to take advantage of these trends and accelerate our growth at the leading edge of the economic recovery."

SUMOTEXT, Inc. is a short code application provider. Our clients leverage our carrier relationships, SMS gateway, and campaign management tools to begin engaging their most valued customers on their mobile device via text messaging. Though we support select clients that leverage our platform and expertise to 'SMS-enable' custom solutions, we remain dedicated to supporting and enhancing a branded, self-service platform that our clients access online to manage compliant Text-2-Join and Text-4-Info programs via common short codes. Our powerful, yet easy to use tools enable our clients to fully control keywords on short codes and configure highly interactive campaigns and message flows that increase response rates from traditional advertising channels while they identify, attract, profile, and reward our clients' most valued customers.

For more information, visit: http://www.sumotext.com

FORWARD-LOOKING STATEMENTS

Certain statements made in this news release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning the Company's plans, objectives, future orders, revenue, earnings or performance, liquidity and cash flow, capital expenditures, business trends, and other information that is not historical in nature. Forward-looking statements may be identified by terminology such as "may," "will," "should," "expects," "anticipates," "believes," "projects," "forecasts," "outlook," "guidance," "continue," or the negative of such terms or comparable terminology. Forward-looking statements contained in this news release or in other statements made by the Company are made based on management's expectations and beliefs concerning future events impacting the Company and are subject to uncertainties and factors relating to the Company's operations and business environment, all of which are difficult to predict and many of which are beyond the Company's control, that could cause the Company's actual results to differ materially from those matters expressed or implied by forward-looking statements. These factors and uncertainties include, among others, the following: the cyclicality of the markets that the Company serves and the vulnerability of those markets to economic downturns; the negative impacts of the recent global economic and financial crisis, including the extent of decline in future sales and earnings related to these events; a delay, significant reduction in or loss of purchases by large customers; our reliance on key suppliers and potential supplier failures or defects; competition; general economic, political, business and market risks; the Company's ability to successfully manage its costs, core business resources and growth, including its ability to successfully manage operational expansions and integrate new product lines or businesses; the loss of key employees, labor costs and disputes, and deterioration of employee relations; volatility and fluctuations in the price of the Company's stock; and risks associated with our indebtedness. For a discussion of these and additional factors that could cause actual results to differ from those described in the forward-looking statements, see the Company's filings with the Securities and Exchange Commission, including the risk factors noted in the Company's Annual Report on Form 10-K for the fiscal year ended August 31, 2009, which should be reviewed carefully. The Company undertakes no obligation to update or revise any forward-looking statement.

Contact Information

  • Contact:
    SUMOTEXT, Inc.
    Taylor Bradley
    Public Relations
    Timothy Miller
    President & CEO
    501-228-4011