SOURCE: Augme Technologies, Inc.

Augme Technologies, Inc.

October 14, 2010 08:28 ET

Augme Technologies, Inc. Reports Sharply Higher Second Quarter Continuing Operational Revenues

AD LIFE™ Mobile Platform Continues to Exceed Expectations Due to Strong Customer Demand

NEW YORK, NY--(Marketwire - October 14, 2010) -  Augme Technologies, Inc. (OTCBB: AUGT), the only patented and innovative end-to-end mobile marketing platform, today announced its operating results for the second quarter of FY2011.

For the three months ended August 31, 2010, the Company's revenues totaled $718,717, which represented an increase of more than 1,700% when compared with continuing operational revenues of $39,509 in the second quarter of FY2010. Production and service delivery costs totaled $251,711, resulting in a gross profit of $467,006 for the most recent quarter, versus $105,760 in continuing operational production and service delivery costs and a continuing operational gross loss of ($66,251) in the quarter ended August 31, 2009. The increase in production and service delivery costs was due to additional expenses related to the human capital necessary to facilitate the effective delivery of the Company's mobile marketing and related services to its customers.

Selling, general, and administrative ("SG&A") expenses increased to $2,180,524 in the second quarter of FY2011, compared with $1,106,866 in continuing operational SG&A expenses in the quarter ended August 31, 2009. The 97% increase in SG&A expenses primarily consisted of approximately $799,000 in non-cash stock option expense, approximately $170,000 in outside contracting costs associated with an increased level of product development, and approximately $444,000 in accounting, consulting and various other expenses. 

Depreciation and amortization ("D&A") expense totaled $244,257 in the quarter ended August 31, 2010, compared with $205,590 of continuing operational D&A expenses in the prior-year period. The increase in depreciation and amortization expense related to intangible assets associated with an acquisition that was completed last year.

During the quarter ended August 31, 2010, the Company incurred a net loss of ($1,957,775), or ($0.03) per share, compared with a continuing operational net loss of ($1,442,963), or ($0.03) per share, in the second quarter of FY2010. The $513,377 increase in net loss resulted from higher expenses, including non-cash expenses, as described above.

Revenues of $718,717 during the second quarter of FY2011 increased by more than 150% when compared with revenues of $286,323 in the first quarter of FY2011, representing the fifth consecutive quarter of sequential quarterly revenue growth exceeding an average of approximately 100%. "We are very pleased with the Company's performance during the second fiscal quarter, when revenue growth exceeded the guidance provided in our news release dated September 7, 2010," stated Paul Arena, Chief Executive Officer of Augme Technologies, Inc. "Our customers, which consist primarily of Fortune 500 companies, are becoming increasingly aware of the value that our AD LIFE™ comprehensive mobile marketing solution brings to their efforts to reach consumers of brand-name products and services when purchase decisions are being made. This is also evident in the accelerating growth of our bookings with new and existing customers, a number of which are rolling out mobile marketing campaigns for multiple brands. Industry experts continue to predict that the ability to effectively access and educate mobile consumers will play a major role in marketing campaigns by consumer packaged goods companies in the future, and we are confident in our ability to capture a greater share of this rapidly expanding opportunity."

Business Outlook

The Company forecasts that recognizable revenues should exceed $10 million during the next twelve months, based on an estimate that approximately 50% of current bookings will convert into revenues within that period of time. 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, 10 Fortune 100 companies, twelve Fortune 200 companies and one Global Fortune 500 company.

Intellectual Property Portfolio

Augme's solutions are supported by its intellectual property portfolio. The Company now owns three patents and has been notified that one additional patent will be allowed pending formal issuance by the United States Patent & Trademark Office ("USPTO"). Additional patent applications are pending or in process for filing. 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. A settlement conference has been scheduled with Judge Ellis on October 28, 2010.

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. 

A settlement conference was held on July 28, 2010. An order was issued by Magistrate Judge Elizabeth D. Laporte directing that the parties attending the settlement conference be members of management with full knowledge of the case and full authority to settle. It was also ordered that all proceedings relating to the settlement conference were to be held confidential, that all information disclosed between the parties would be subject to the strict confidentiality requirements of settlement conference practices, and that this confidentiality would carry on subsequent to the meeting.

About Augme Technologies, Inc.

Augme Technologies, Inc. (OTCBB: AUGT) is the technology and services leader in interactive media marketing platforms that enable marketers and agencies to seamlessly integrate brands, promotions, video and other digital content through the power of the Internet and mobile communications. Augme's intuitive new media marketing platforms allow companies to quickly create, deploy and measure rich-media, interactive marketing campaigns across all networks and devices. Campaigns built on Augme marketing platforms strengthen customer loyalty by delivering personalized brand experiences to customers where they work, play and live. By leveraging the power of its AD LIFE™ mobile marketing solution with complementary services such as video content delivery (BOOMBOX®) and ad network provisioning (AD SERVE™), Augme connects brands and content to consumers in a network of mobile and multimedia experiences that enables companies and their marketing agencies to build sales and monetize brand interactions. Augme is headquartered in New York City. 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.

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.

 
 
AUGME TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
FOR THE PERIOD ENDED AUGUST 31,
(Unaudited)
 
ASSETS
 
    2010   2009
         
Current Assets        
  Cash and cash equivalents   $ 350,995   $ 535,997
  Accounts Receivable, net of allowance for doubtful accounts of $62,146 and $63,747, respectively     415,628     439,599
Stock subscriptions receivable     587,500     70,894
  Prepaid Expenses and Other Current Assets     134,435      
    Total Current Assets     1,488,558     1,046,490
             
             
Property and equipment, net of accumulated depreciation of $874,932 and $733,241, respectively     579,609     530,844
Goodwill     13,106,969     13,122,860
Intangible assets, net of accumulated amortization of $1,806,704 and $1,456,679, respectively     4,103,474     4,794,002
Deposits     27,450     -0-
TOTAL ASSETS   $ 19,306,060   $ 19,494,196
   
   
   
AUGME TECHNOLOGIES, INC.  
CONSOLIDATED BALANCE SHEETS  
FOR THE PERIOD ENDED AUGUST 31,  
(Unaudited)  
   
LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)  
               
   2010     2009 
               
Current Liabilities              
  Accounts payable $ 829,107     $ 1,073,655  
  Accrued liabilities   248,248       374,515  
  Deferred revenue, current   99,071       373,143  
  Derivative Liabilities   -0-       533,131  
  Total current liabilities   1,176,426       2,354,444  
               
               
Long-term deferred revenue   12,930       15,417  
Capital Lease Obligations   -0-       24,215  
  Total liabilities   1,189,356       2,394,076  
               
               
Stockholders' Equity (Deficit)              
Common stock, $.0001 par value; 100,000,000 shares authorized, 59,501,977 and 57,256,750 shares issued and outstanding, respectively   5,948       5,205  
Additional paid-in capital   49,279,603       39,248,273  
Accumulated deficit   (31,168,847 )     (22,153,158 )
Total Stockholders' Equity   18,116,704       17,100,120  
               
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 19,306,060     $ 19,494,196  
             
             
             
AUGME TECHNOLOGIES, INC.  
CONSOLIDATED STATEMENTS OF OPERATIONS  
(Unaudited)  
             
    For the Three Months Ended August 31, 2010     For the Three Months Ended August 31, 2009  
             
REVENUE   $ 718,717     $ 711,365  
                 
                 
COST OF REVENUES (Excluding depreciation):                
Production and service delivery costs     251,711       255,593  
                 
                 
Gross Profit     467,005       455,772  
                 
                 
OPERATING EXPENSES:                
Selling, general and administrative     2,180,524       1,579,734  
Depreciation and amortization     244,257       289,044  
                 
                 
Total Operating Expenses     1,957,775       1,868,778  
LOSS FROM OPERATIONS     (1,957,775 )     (1,413,006 )
OTHER INCOME                
Interest income/(expense), net     6       (574 )
Gain (Loss) in derivative instruments     -0-       (63,682 )
  LOSS FROM CONTINUING OPERATIONS     (1,957,769 )     (1,477,262 )
Loss from discontinued operations     -0-       -0-  
  Loss on sale of discontinued operations     -0-       -0-  
LOSS FROM DISCONTINUED OPERATIONS     -0-       -0-  
NET LOSS   $ (1,957,769 )   $ (1,477,262 )
                 
BASIC AND DILUTED NET LOSS PER SHARE:                
  Loss from continuing operations     -0-       -0-  
  Loss from discontinued operations     -0-       -0-  
NET LOSS PER SHARE - basic and diluted:   $ (0.03 )   $ (0.03 )
WEIGHTED AVERAGE SHARES OUTSTANDING                
  Basic and diluted     57,969,423       49,302,062  
                 

Contact Information

  • Contact:
    For Augme Technologies, Inc.

    Investor Relations Contact:

    RJ Falkner & Company, Inc.
    Investor Relations Counsel
    (830) 693-4400
    info@rjfalkner.com or ir@augme.com

    Public Relations Contact:

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