SOURCE: Juma Technology Corp.

Juma Technology Corp.

November 10, 2010 16:31 ET

Juma Reports Third Quarter 2010 Earnings

FARMINGDALE, NY--(Marketwire - November 10, 2010) - Juma Technology Corp. (OTCBB: JUMT), a leading IP Convergence firm specializing in managed services for voice and data networks, today reported financial results for the third quarter ended September 30, 2010.

Third Quarter 2010 Highlights

--  Revenues Increased 23% over Q3 2009
--  Research and development expenses decreased 18% over Q3 2009

Operating Results:

Revenues for the three months ended September 30, 2010 increased $435,395 or 23% to $2,331,645, compared with revenues of $1,896,250 for the three months ended September 30, 2009. Research and development expenses decreased by $10,716 or 18% to $48,420 for the three months ended September 30, 2010, compared to $59,136 for the three months ended September 30, 2009. The Company incurred a net loss of $2,076,236 for the three months ended September 30, 2010 compared to a net loss of $2,751,311 for the three months ended September 30, 2009.

"We are forging ahead with positive revenue growth and heightened efficiencies across all of our business units, while simultaneously making significant strides in growing our Nectar software subsidiary," said Anthony M. Servidio, Chief Executive Officer.

Anthony Fernandez, Chief Financial Officer for Juma, said, "We are committed to prudent expense management and maximizing our recurring revenue. The overall goal is to continue to drive expenses down and revenues up while focusing on profitability."

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. (www.nectarcorp.com), 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




                                                September 30, December 31,
                                                    2010          2009
                                                (Unaudited)     (Audited)
                                                ------------  ------------

ASSETS
Current assets:
Cash                                            $    392,857  $    961,001
Accounts receivable, (net of allowance of
 $271,998 and $213,471, respectively)              2,415,252     2,175,034
Inventory                                            171,789       161,770
Prepaid expenses                                      44,465        26,837
Other current assets                                 133,889       133,889
                                                ------------  ------------
       Total current assets                        3,158,252     3,458,531
                                                ------------  ------------

Fixed assets, (net of accumulated depreciation
 of $1,132,926 and $827,839, respectively)           966,260     1,224,120

Other assets                                         173,887       248,509
                                                ------------  ------------
       Total assets                             $  4,298,399  $  4,931,160
                                                ============  ============

LIABILITIES AND STOCKHOLDERS' DEFICIENCY
Current liabilities:
Notes payable, (net of discount of $165,987 and
 $0, respectively)                              $  1,613,184  $    279,172
Convertible notes payable, (plus premium of
 $46,769 and net of discount of $604,435,
 respectively)                                    16,016,045    12,099,346
Current portion of capital leases payable             61,166       174,115
Accounts payable                                   1,626,117     2,022,532
Accrued expenses and taxes payable                   154,807       309,962
Accrued interest payable                           2,506,280     1,394,162
Deferred revenue                                      40,071        76,174
                                                ------------  ------------
       Total current liabilities                  22,017,670    16,355,463

Capital leases payable, net of current
 maturities                                              962        25,466
Convertible notes payable                                  -       700,000
                                                ------------  ------------
       Total liabilities                          22,018,632    17,080,929
                                                ------------  ------------

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
Series C Preferred Stock, $0.0001 par value,
 10,000,000 shares authorized, 1,970,756 and 0
 shares issued and outstanding, respectively             197             -
Common stock, $0.0001 par value, 900,000,000
 shares authorized, and 46,648,945 shares
 issued and outstanding                                4,646         4,646
Additional paid in capital                        37,972,809    32,901,105
Warrants                                           1,027,689     3,155,145
Retained deficit                                 (56,726,574)  (48,211,665)
                                                ------------  ------------
       Total stockholders' deficiency            (17,720,233)  (12,149,769)
                                                ------------  ------------
       Total liabilities and stockholders'
        deficiency                              $  4,298,399  $  4,931,160
                                                ============  ============




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



                    Three          Three          Nine           Nine
                months ended   months ended   months ended   months ended
                September 30,  September 30,  September 30,  September 30,
                    2010            2009           2010           2009
                -------------  -------------  -------------  -------------
Sales           $   2,331,645  $   1,896,250  $   8,078,829  $   9,936,932
Cost of goods
 sold               1,498,431      1,004,817      5,660,003      6,637,904
                -------------  -------------  -------------  -------------
Gross margin          833,214        891,433      2,418,826      3,299,028
                -------------  -------------  -------------  -------------

Operating
 expenses
Selling               413,887        387,970      1,324,678      1,160,958
Research and
 development           48,420         59,136        167,248        315,735
General and
 administrative     2,009,609      1,871,910      4,968,353      6,115,533
                -------------  -------------  -------------  -------------
Total operating
 expenses           2,471,916      2,319,016      6,460,279      7,592,226
                -------------  -------------  -------------  -------------

(Loss) from
 operations        (1,638,702)    (1,427,583)    (4,041,453)    (4,293,198)

Amortization of
 premium and
 (discount) on
 notes, net            40,510       (984,286)    (2,507,528)    (4,025,866)
Interest
 (expense), net      (471,013)      (339,249)    (1,362,592)      (952,376)
                -------------  -------------  -------------  -------------

(Loss) before
 income taxes      (2,069,205)    (2,751,118)    (7,911,573)    (9,271,440)
Provision for
 income taxes           7,031            193         12,109          7,642

                -------------  -------------  -------------  -------------
Net (loss)      $  (2,076,236) $  (2,751,311) $  (7,923,682) $  (9,279,082)
Deemed
 preferred
 stock dividend             -              -        591,227      7,266,107
                -------------  -------------  -------------  -------------
Net (loss)
 attributable
 to common
 shareholders   $  (2,076,236) $  (2,751,311) $  (8,514,909) $ (16,545,189)
                =============  =============  =============  =============

Basic and
 diluted net
 (loss) per
 share          $       (0.04) $       (0.06) $       (0.18) $       (0.36)
                =============  =============  =============  ============= 
Weighted
 average common
 shares
 outstanding       46,468,945     46,452,641     46,468,945     46,380,575
                =============  =============  =============  =============

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