SOURCE: Juma Technology Corp.

Juma Technology Corp.

August 13, 2009 09:00 ET

Juma Reports Second Quarter 2009 Earnings

FARMINGDALE, NY--(Marketwire - August 13, 2009) - Juma Technology Corp. (OTCBB: JUMT), a leading IP Convergence firm specializing in managed services, today reported financial results for the quarter ended June 30, 2009.

Second Quarter 2009 Highlights

--  Gross margin increased 3% over Q2 2008
--  Selling expenses decreased 26% over Q2 2008
--  Research and development expenses decreased 41% over Q2 2008
    

Operating Results

Revenues for the three months ended June 30, 2009 decreased $1,583,617 or 32% to $3,391,130, compared with revenues of $4,974,747 for the three months ended June 30, 2008. Gross margin for the three months ended June 30, 2009 increased $27,157 or 3% to $1,082,503, compared to $1,055,346 for the three months ended June 30, 2008. The Company incurred a net loss of $5,123,684 for the three months ended June 30, 2009 compared to a net loss of $2,636,836 for the comparable period in 2008. Included in the net loss of $5,123,684 was $2,611,036 related to amortization of discounts on notes.

"Despite this tough economy, our Company has maintained respectable revenue numbers while improving margins and reining in operating expenses," said Anthony M. Servidio, Chief Executive Officer for Juma. "While our main objective is always to grow revenue, create new clients and broaden our business opportunities, we are also savvy to the fact that improving margins and keeping expenses down are equally important. Our team continues to build a solid Company with magnificent potential. We are extremely excited about the positive momentum and what the future holds."

Anthony Fernandez, Chief Financial Officer for Juma, added, "Although revenue figures were slightly lower than last year, we have been able to retain our margins while weathering the overall economic conditions."

About Juma (www.jumacorp.com)

Juma Technology Corp. provides advanced IP Convergence solutions that integrate voice, data and video applications. Juma's IP Convergence solutions enable companies to increase productivity, enhance mobility and create significant cost savings. Juma has been recognized as an industry leader in providing integrated business communications and services, helping customers leverage network convergence to achieve their business goals. Nectar Services Corp., an IP communications and management services provider, is a wholly owned subsidiary of Juma and represents the company's services division. The Nectar suite of services delivers real business solutions to help companies mitigate risk, centralize systems management and dramatically reduce telecom expenses. Follow us on Twitter: www.twitter.com/jumatech.

Forward-Looking Statements

Historical results and trends should not be taken as indicative of future operations. Management's statements contained in this report that are not historical facts may be forward-looking statements under the Private Securities Litigation Act of 1995. Actual results may differ materially from those included in the forward-looking statements. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," "prospects," or similar expressions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on the operations and future prospects of the Company on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, significant restructuring and acquisition activities, and generally accepted accounting principles. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Further information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is included herein and in the Company's other filings with the SEC.

                 Juma Technology Corp. and Subsidiaries
                  Condensed Consolidated Balance Sheets


                                                 June 30,    December 31,
                                                   2009          2008
                                               (Unaudited)     (Audited)
                                              -------------  -------------

ASSETS
Current assets:
Cash                                          $   2,430,427  $     364,046
Accounts receivable, (net of allowance of
 $261,340 and $391,501, respectively)             2,428,743      2,792,483
Inventory                                            78,564        254,531
Prepaid expenses                                     36,481         17,561
Other current assets                                125,000        196,922
                                              -------------  -------------
    Total current assets                          5,099,215      3,625,543
                                              -------------  -------------

Fixed assets, (net of accumulated
 depreciation of $629,431 and $439,457,
 respectively)                                    1,361,932      1,512,535

Other assets                                        296,018        302,856
                                              -------------  -------------
    Total assets                              $   6,757,165  $   5,440,934
                                              =============  =============

LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities:
Notes payable                                 $     347,705  $     297,242
Convertible notes payable, (net of discount
 of  $1,501,128 and plus premium of  $93,669,
 respectively)                                    4,441,372      1,493,669
Current portion of capital leases payable           182,014        209,413
Accounts payable                                  2,261,998      2,809,419
Accrued expenses and taxes payable                  454,229        615,939
Deferred revenue                                    112,884      1,021,914
                                              -------------  -------------
    Total current liabilities                     7,800,202      6,447,596

Capital leases payable, net of current
 maturities                                         106,862        199,582
Notes payable                                             -         43,818
Convertible notes payable, (plus premium of
 $747,722 and net of discount of $267,216,
 respectively)                                    6,747,722      5,732,784
Other liabilities                                   450,000              -
                                              -------------  -------------
    Total liabilities                            15,104,786     12,423,780
                                              -------------  -------------

Commitments and contingencies

Stockholders' deficiency
Series A Preferred stock, $0.0001 par value,
 8,333,333 shares authorized, 8,333,333
 shares issued and outstanding, respectively            833            833
Series B Preferred stock, $0.0001 par value,
 1,666,667 shares authorized, 1,666,500 and
 1,666,500 shares issued and outstanding,
 respectively                                           167            167
Common stock, $0.0001 par value, 900,000,000
 shares authorized,  and 46,343,945 shares
 issued and outstanding, respectively                 4,634          4,634
Additional paid in capital                       31,731,863     21,225,245
Warrants                                          2,249,624        327,139
Retained deficit                                (42,334,742)   (28,540,864)
                                              -------------  -------------
    Total stockholders' deficiency               (8,347,621)    (6,982,846)
                                              -------------  -------------
    Total liabilities and stockholders'
     deficiency                               $   6,757,165  $   5,440,934
                                              =============  =============




                 Juma Technology Corp. and Subsidiaries
             Condensed Consolidated Statements of Operations
              For the three and six  months ended June 30,


                    Three months  Three months   Six months    Six months
                        ended         ended         ended         ended
                      June 30,      June 30,      June 30,      June 30,
                        2009          2008          2009          2008
                    ------------  ------------  ------------  ------------
Sales               $  3,391,130  $  4,974,747  $  8,040,682  $  9,611,626
Cost of goods sold     2,308,627     3,919,401     5,633,087     7,573,500
                    ------------  ------------  ------------  ------------
Gross margin           1,082,503     1,055,346     2,407,595     2,038,126
                    ------------  ------------  ------------  ------------

Operating expenses
Selling                  397,172       536,546       772,988     1,057,105
Research and
 development             123,241       207,937       256,599       389,522
Goodwill impairment            -             -             -       204,600
General and
 administrative        2,764,944     2,362,709     4,243,623     4,621,774
                    ------------  ------------  ------------  ------------
Total operating
 expenses              3,285,357     3,107,192     5,273,210     6,273,001
                    ------------  ------------  ------------  ------------

(Loss) from
 operations           (2,202,854)   (2,051,846)   (2,865,615)   (4,234,875)

Amortization of
 discount on notes    (2,611,036)     (395,504)   (3,041,580)     (541,460)
Interest (expense),
 net                    (305,260)     (189,187)     (613,127)     (350,041)
                    ------------  ------------  ------------  ------------

(Loss) before
 income taxes         (5,119,150)   (2,636,537)   (6,520,322)   (5,126,376)
Provision for
 income taxes              4,534           299         7,449         1,699

                    ------------  ------------  ------------  ------------
Net (loss)          $ (5,123,684) $ (2,636,836) $ (6,527,771) $ (5,128,075)
Deemed preferred
 stock dividend        1,666,667     1,112,200     7,266,107     1,112,200
                    ------------  ------------  ------------  ------------
Net (loss)
 attributable to
 common
 shareholders       $ (6,790,351) $ (3,749,036) $(13,793,878) $ (6,240,275)
                    ============  ============  ============  ============

Basic and diluted
 net (loss) per
 share attributable
 to common
 shareholders       $      (0.15) $      (0.09) $      (0.30) $      (0.14)
                    ============  ============  ============  ============
Weighted average
 common shares
 outstanding          46,343,945    43,948,950    46,343,945    43,947,741
                    ============  ============  ============  ============

Contact Information

  • CONTACT:
    Juma Technology Corp.
    Melissa J. Nacerino
    646-291-8264
    Email Contact