SOURCE: SUMOTEXT, Inc.

April 15, 2010 18:10 ET

SUMOTEXT, Inc. Reports Second Quarter 2010 Results

LITTLE ROCK, AR--(Marketwire - April 15, 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 February 28, 2010.

Revenue for the second quarter was $297,836, an increase of 10% when compared to the prior quarter and an increase of 111% when compared to the same three-month period one year ago.

Net loss for the second quarter was $97,130, a decrease in net loss of 14% when compared to the prior quarter and a decrease in net loss of 49% when compared to same three-month period one year ago.

During the quarter, the Company netted 92 new clients for a total of 606 unique, paying clients as of February 28, 2010.

The Company's President, Timothy Miller, said, "We continue to expand and refine the metrics that we use to measure the growth and health of our business. Though net client additions was strong this quarter, this metric will become less valuable as we penetrate agencies and franchised brands where even existing clients can become consolidated under a single agency or co-op account. As such, our Base Recurring Monthly Subscription Plan Fees metric currently remains the most accurate method to measure our core growth from period to period."

Base Recurring Monthly Subscription Plan Fees scheduled for our third quarter are $103,508. This compares to $91,242, $79,752, $62,459, and $41,635 for the four previous quarters.

Mr. Miller added, "We are excited to announce that our new service delivery platform has been in use by new clients since February of 2010 and we expect to begin migrating our existing clients and their short codes to this new platform in the coming weeks. There are many indicators that suggest this new platform will be considered best of breed in our industry; including the recent signing of two very high-profile clients."

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. We believe that every business and organization that currently collects email addresses will eventually begin collecting mobile 'opt-ins.' 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 client's most valued customers.

For more information on the Company, mobile marketing, or short codes, 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 Quarterly Report on Form 10-Q for the quarter ended February 28, 2010 and the 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