SOURCE: Augme Technologies, Inc.

Augme Technologies, Inc.

October 11, 2011 08:00 ET

Augme Technologies, Inc. Reports 79% Increase in Second Quarter Revenues

Company Positioned to Address Strong Customer Demand With AD LIFE™ 4.0 and HIP 7.0 Mobile Marketing Platforms and Services

NEW YORK, NY--(Marketwire - Oct 11, 2011) - Augme Technologies, Inc. (OTCBB: AUGT) ("Augme") ("the Company"), a technology and services leader in interactive media marketing that offers the only patented and innovative end-to-end mobile marketing platform, today announced its operating results for the second quarter and first half of FY2012. The Company will host an investor conference call to discuss its operating results and other topics of interest at 11:00 a.m. Eastern Time today, October 11, 2011 (see details below).

For the second fiscal quarter ended August 31, 2011, the Company reported revenue of $1,287,122, which represented an increase of approximately 79% when compared with revenue of $718,717 in the prior-year fiscal quarter ended August 31, 2010 and an increase of 7% when compared with revenue during the first quarter of FY2012 ended May 31, 2011.

The Company also reaffirmed its previous revenue guidance of $16.0 million for the fiscal year ending February 29, 2012. Augme currently expects to recognize approximately $5.0 million in revenue from previously existing contracts and contracts obtained through recent acquisitions during the second half of fiscal 2012, along with additional revenue from contractual agreements signed during the balance of the fiscal year. The Company provides access to its AD LIFE™ 4.0 and HIP 7.0 software-as-a-service ("SaaS") mobile marketing platforms and services through term license fees, support fees and mobile marketing campaign fees. These contracts generally include multiple elements as part of the overall service delivery, and revenue is generally recognized over the term of the contracts. Professional services revenue is recognized as the services are performed, as such services have value on a stand-alone basis, do not involve unique acceptance criteria, and have a fair value that can be obtained, while the other services are generally sold without professional services.

Gross profits (revenue minus production and service delivery costs) increased 87% to $874,775, or 68.0% of revenue, in the second quarter of FY2012, compared with $467,006, or 65.0% of revenue, in the second quarter of FY2011.

The Company recorded a net loss of $5,606,968, or $0.08 per share, during the second quarter of FY2012, compared to a net loss of $1,957,769, or $0.03 per share, in the prior-year period. The net loss during the most recent quarter included non-cash stock, option and warrant expense totaling $2,158,113, compared with stock, option and warrant expense of $799,279 in the second quarter of FY2011.

"During our second quarter, Augme completed the acquisition of the assets of Jagtag, Inc. and Hipcricket, Inc., representing strategic accomplishments that we believe will position the Company to reach critical mass and accelerate the achievement of its long-term objectives," stated Paul Arena, Chief Executive Officer of Augme Technologies, Inc. "We believe that we now have the capabilities and assets to deliver the most comprehensive and strategically valuable portfolio of mobile marketing services to global, national and regional name-brand leaders. Having completed over 130,000 mobile marketing campaigns to date, and with a customer retention rate well in excess of 90%, we believe Augme can provide its customers the most effective tools to reach targeted audiences through their smartphones and other mobile devices."

"Revenue increased 79% in the most recent quarter, when compared with the second quarter of fiscal 2011, and revenue for the first half of fiscal 2012 rose 148% relative to the corresponding period of the previous fiscal year," continued Arena. "In projecting full-year revenue of $16.0 million, we are taking a very measured and conservative approach in forecasting the future contributions from these recently completed acquisitions. We plan to update our revenue guidance as we complete the integration process."

For the six months ended August 31, 2011, the Company's revenue increased 148% to $2,492,909, compared to $1,005,040 in the first half of the previous fiscal year.

Gross profits increased 230% to $1,717,630 (68.9% of revenue) in the six months ended August 31, 2011, compared to $520,002 (51.7% of revenue) in the six months ended August 31, 2010.

The Company recorded a net loss of $9,623,554, or $0.14 per share, in the first half of FY2012, compared with a net loss of $3,694,279, or $0.06 per share, in the corresponding period of the previous fiscal year. The net loss during the first half of FY2012 included non-cash stock, option and warrant expense totaling $3,800,345, compared with similar non-cash expense totaling $1,414,297 in the first half of FY2011.

Conference Call Details
Management will host a conference call to discuss these results on Tuesday, October 11, 2011 at 11:00 a.m. EDT. To participate in the conference call, please call 866-625-0328 (domestic call-in) or 706-643-2088 (international call-in) and reference code # 15965691.

A live webcast of the conference call will be available in the corporate section of the company's website. All participants should call or access the website approximately 10 minutes before the conference begins.

A telephone replay of the conference call will be available from 2:00 p.m. EDT on October 11 until 11:59 p.m. EDT on October 17 by calling 855-859-2056 (domestic) or 404-537-3406 (international) and entering confirmation #15965691. An archived replay of the conference call will also be available in the corporate section of the company's website.

About Augme Technologies, Inc.

Augme Technologies, Inc. (OTCBB: AUGT) provides strategic services and mobile marketing technology to leading consumer and healthcare brands. Its platforms, including AD LIFE™, have provided measurable successes across an industry-leading 130,000+ campaigns for such clients as Macy's, MillerCoors, Nestle, KFC, and Clear Channel. Augme's offerings allow marketers, brands, and agencies the ability to plan, create, test, deploy, and track mobile marketing programs across every mobile channel, including SMS, 2D/QR codes, mobile websites, advertising networks, social media and branded apps. Augme's platforms facilitate 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 acquired the assets of Hipcricket, Inc. and Jagtag, Inc. and licenses the digital broadcast platform BOOMBOX®. Augme is headquartered in New York City, with operations in Seattle, Atlanta, Dallas, Los Angeles, Chicago, Tucson and London. For more information, visit www.augme.com.

Augme Technologies, Inc.™, Augme™, AD LIFE™, BOOMBOX®, AD SERVE™ and the Augme logo are trademarks of Augme Technologies, Inc. All rights reserved. 2009-11.

Forward-Looking Statements

This release includes forward-looking statements. All statements regarding our expected future financial position, including management's revenue guidance, 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 Augme's Form 10-K for the year ended February 28, 2011 and more recent reports and registration statements filed with the SEC. Augme Technologies, Inc. is under no obligation (and expressly disclaims any such obligation) to update or alter such forward-looking statements, whether as a result of new information, future events or otherwise.

AUGME TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
FOR THE PERIODS ENDED AUGUST 31, 2011 and FEBRUARY 28, 2011
(Unaudited)
ASSETS
August 31, 2011 February 28, 2011
Current Assets
Cash and cash equivalents $ 3,174,474 $ 11,182,356
Accounts Receivable, net of allowance for doubtful accounts of $83,655 and $99,657, respectively 3,427,650 2,025,294
Prepaid Expenses and Other Current Assets 145,808 132,197
Total Current Assets 6,747,932 13,339,847
Property and equipment, net of accumulated depreciation of $1,219,598 and $1,058,728, respectively 410,094 570,964
Goodwill 31,767,740 13,106,969
Intangible assets, net of accumulated amortization of $2,543,178 and $1,806,704, respectively 36,135,800
4,945,545
Deposits 140,307 67,551
TOTAL ASSETS $ 75,201,873 $ 32,030,876

AUGME TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
FOR THE PERIODS ENDED AUGUST 31, 2011 and FEBRUARY 28, 2011
(Unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
August 31, 2011 February 28, 2011
Current Liabilities
Accounts payable $ 750,372 $ 708,824
Accrued liabilities 648,961 31,305
Deferred revenue, current 1,415,421 1,190,151
Related party notes payable 1,000,000 -0-
Total current liabilities 3,814,754 1,930,280
Total liabilities 3,814,754 1,930,280
Stockholders' Equity (Deficit) Common stock, $.0001 par value; 250,000,000 shares authorized, 83,782,688 and 68,816,131 shares issued and outstanding, respectively
8,378

6,882
Additional paid-in capital 120,955,342 70,046,761
Accumulated deficit (49,576,601 ) (39,953,047 )
Total Stockholders' Equity 71,387,119 30,100,596
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 75,201,873 $ 32,030,876

AUGME TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Three
Months Ended
August 31, 2011
For the Three
Months Ended
August 31, 2010
REVENUE $ 1,287,122 $ 718,717
COST OF REVENUES (Excluding depreciation):
Production and service delivery costs

412,347

251,711
Gross Profit 874,775 467,006
OPERATING EXPENSES:
Selling, general and administrative 4,028,062 1,381,245
Stock, option and warrant expense 2,158,113 799,279
Depreciation and amortization 300,724 244,257
Total Operating Expenses 6,486,899 2,424,781
LOSS FROM OPERATIONS (5,612,124 ) (1,957,775 )
OTHER INCOME
Interest income/(expense), net 5,156 6
NET LOSS (5,606,968 ) (1,957,769 )
BASIC AND DILUTED NET LOSS PER SHARE:
NET LOSS PER SHARE - basic and diluted: $ (.08 ) $ (.03 )
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic and diluted 71,189,143 57,969,423

AUGME TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
For the Six
Months Ended
August 31, 2011
For the Six
Months Ended
August 31, 2010
REVENUE $ 2,492,909 $ 1,005,040
COST OF REVENUES (Excluding depreciation):
Production and service delivery costs 775,279 485,038
Gross Profit 1,717,630 520,002
OPERATING EXPENSES:
Selling, general and administrative 7,007,113 2,308,284
Stock, option and warrant expense 3,800,345 1,414,297
Depreciation and amortization 553,256 491,716
Total Operating Expenses 11,360,714 4,214,297
LOSS FROM OPERATIONS (9,643,084 ) (3,694,295 )
OTHER INCOME
Interest income/(expense), net 19,530 16
NET LOSS (9,623,554 ) (3,694,279 )
BASIC AND DILUTED NET LOSS PER SHARE:
NET LOSS PER SHARE - basic and diluted: $ (.14 ) $ (.06 )
WEIGHTED AVERAGE SHARES OUTSTANDING
Basic and diluted 70,001,452 57,625,702

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:
    Ed Harrison
    fama PR
    (617) 986-5003
    ed@famapr.com