SOURCE: Augme Technologies, Inc.

Augme Technologies, Inc.

March 02, 2011 08:00 ET

Augme Technologies Expects Fourth Quarter Revenue to Exceed $1.0 Million for First Time

Company Beginning New Fiscal Year at $8.0+ Million Annualized Revenue Run-Rate; Company Forecasts Recognizable Revenue Exceeding $16.0 Million and Positive Cash Flow in Current Fiscal Year

NEW YORK, NY--(Marketwire - March 2, 2011) - Augme Technologies, Inc. (OTCBB: AUGT), a technology and services leader in interactive media marketing that offers the only patented and innovative end-to-end mobile marketing platform, today announced that it expects to report revenue in excess of $1.0 million for its fourth fiscal quarter, which ended February 28, 2011. This represents a sequential increase in recognizable revenue of approximately 23% relative to third quarter reported revenue of $853,161. In addition, deferred revenue, which is recognized over the period of contract performance of typically one year, increased to over $1.0 million at the end of the fourth quarter, from $409,160 on November 30, 2010, a sequential increase of over 64%. Combined recognizable and deferred sales exceeded $2.1 million in the most recent fourth fiscal quarter, an increase of over 68% when compared with recognizable and deferred sales of $1,262,259 in the third fiscal quarter.

"Our record fourth quarter caps a year of extraordinary growth for Augme," said Paul Arena, Chief Executive Officer of Augme Technologies, Inc. "Our revenue for the fiscal year ended February 28, 2011 exceeded $2.9 million, an increase of over 8,500% from the previous fiscal year ended February 28, 2010 of $339,901 and revenues are currently in excess of an $8.0 million annualized run rate. An overwhelming majority of our client base are repeat customers and we are seeing a demonstrable improvement of our average order size from under $100,000 to substantially over $200,000 in recent months. We are adding a number of marquee customers in our targeted verticals of pharmaceuticals and consumer packaged goods. We are also expanding into other verticals such as financial and automotive. Our patent protected technology has transformed the industry by significantly reducing time to market while expanding the target universe. The measurable success of mobile marketing campaigns is propelling industry growth and our expansion into additional vertical markets positions Augme to remain at the forefront of the market."

Business Outlook

The Company forecasts that recognizable revenues should exceed $16.0 million during the current fiscal year, based on an estimate that approximately 50% of current bookings will convert into revenues within that period of time. The forecast of $16.0 million of revenue is an increase from the most recent forecast of $12.0 million of revenue over the next twelve months that was announced less than three months ago. The Company forecasts reaching positive cash flow during the current fiscal year as well.

The Company defines "current bookings" as the combination of signed agreements, initialed statement-of-work documents, indications of interest and commitments for AD LIFE™ services that have been received from, but not yet delivered to, approximately two-dozen Fortune 500 companies, many of which are Fortune 100 companies.

Intellectual Property Portfolio

Augme's solutions are supported by its intellectual property portfolio, and the Company now owns four patents and has additional patents pending with the United States Patent & Trademark Office ("USPTO"). The patents contain a broad range of claims covering the Company's proprietary technologies and products. Augme also owns four trademarks protecting the names of its products and identity in the marketplace.

Litigation Update

Tacoda, Inc., AOL, LLC, Time Warner, Inc., and Platform-A, Inc.

In 2007, Augme filed a lawsuit against Tacoda, Inc. in the U.S. District Court, Southern District of New York, alleging infringement of Augme-owned U.S. Patent Nos. 6,594,691 ("Method and System for Adding Function to a Web Page") and 7,269,636 ("Method and Code Module for Adding Function to a Web Page").

In Augme's case against Tacoda, Inc.; AOL, LLC; Time Warner, Inc. and Platform-A, Inc., Judge Robert W. Sweet endorsed a letter on August 26, 2010 that was dated August 17, 2010, requesting that the Court assign to Magistrate Judge Ronald L. Ellis the above action for settlement purposes. On October 28, 2010, a mediation hearing was held before Magistrate Judge Ronald L. Ellis. It was also ordered that all proceedings relating to the mediation hearing were to be held confidential, that all information disclosed between the parties would be subject to the strict confidentiality requirements of mediation hearing practices, and that this confidentiality would carry on subsequent to the meeting.

Yahoo! Inc.

On November 16, 2009, Augme filed a Complaint against Yahoo! Inc. for patent infringement relating to U.S. Patent Nos. 6,594,691 and 7,269,636, which patents relate to methods and systems for delivery of selected content from a network to a web page visitor. The matter is currently pending in the United States District Court for the Northern District of California, Case No. C-09-5386 EDL. The remedies available to Augme, if successful, include an injunction prohibiting any infringing actions, an award of damages adequate to compensate for the infringement, and costs of the action. 

On November 12, 2010, Yahoo! filed a motion for summary judgment with the United States District Court for the Northern District of California. On December 3, 2010, an order was issued by Magistrate Judge Joseph C. Spero denying the Yahoo! motion without prejudice.  On December 3, 2010, Yahoo! filed a Notice of Motion and Motion for Leave to File Amended Answer with Additional Counterclaims and to join WorldTalk Radio, LLC as a Counterclaim Defendant. Augme denies that any merit exists with respect to these counterclaims and will continue to pursue the prosecution of Yahoo!'s infringement against the Company's patent claims.

In February 2011, the company announced that it had retained Goodwin Procter, a leading national law firm. Goodwin Procter is charged with identifying possible additional violations of Augme's intellectual property rights and initiating legal proceedings as appropriate.

About Augme Technologies, Inc.

Augme Technologies, Inc. (OTCBB: AUGT) provides strategic services and mobile technology to leading consumer and healthcare brands. Augme's AD LIFE™ mobile marketing technology platform allows marketers, brands, and agencies the ability to plan, create, test, deploy, and track mobile marketing programs. Through the use of consumer response tags (CRTs) such as 2D codes, UPC codes, SMS, and Image Recognition, AD LIFE™ facilitates consumer brand interaction and the ability to track and analyze campaign results. Using its own patented device-detection and proprietary mobile content adaptation software, AD LIFE™ solves the mobile marketing industry problem of disparate operating systems, device types, and on-screen mobile content rendering. Augme also provides business to consumer utilities including national mobile couponing solutions, strategic mobile healthcare tools, custom mobile application development, and consumer data tracking and analytics. In addition to AD LIFE™, Augme owns and licenses the digital broadcast platform BOOMBOX®. Augme is headquartered in New York City. For more information, visit www.augme.com.

Augme Technologies, Inc.™, Augme™, AD LIFE™, AD BOOM™, AD SERVE™ and the Augme logo are trademarks of Augme Technologies, Inc. All rights reserved. 2009-10.

Forward-Looking Statements

This release includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements regarding our expected future financial position, results of operations, cash flows, financing plans, business strategy, products and services, competitive positions, growth opportunities, plans and objectives of management for future operations, as well as statements that include words such as "anticipate," "if," "believe," "plan," "estimate," "expect," "intend," "may," "could," "should," "will," and other similar expressions are forward-looking statements. All forward-looking statements involve risks, uncertainties and contingencies, many of which are beyond our control, which may cause actual results, performance, or achievements to differ materially from anticipated results, performance, or achievements. Factors that may cause actual results to differ materially from those in the forward-looking statements include those set forth in our Form 10-K and other reports filed with the SEC. We are under no obligation to (and expressly disclaim any such obligation to) update or alter our forward-looking statements, whether as a result of new information, future events or otherwise.

Contact Information

  • Contact:
    For Augme Technologies, Inc.

    Investor Relations Contact:


    Stephanie Prince / Jody Burfening
    Lippert/Heilshorn & Associates, Inc.
    (212) 838-3777
    sprince@lhai.com or ir@augme.com

    Public Relations Contact:

    Rachel Carr, SVP
    DKC Public Relations
    (212) 981-5253
    rachel_carr@dkcnews.com