SOURCE: Juma Technology Corp

August 14, 2008 08:00 ET

Juma Technology Reports Second Quarter 2008 Earnings

FARMINGDALE, NY--(Marketwire - August 14, 2008) - Juma Technology Corp (OTCBB: JUMT), a leading IP Convergence firm specializing in managed services, today reported financial results for the second quarter ended June 30, 2008.

Second Quarter 2008 Highlights and Recent Developments

--  Record revenue of $4,974,747 for the period
--  Increase in revenue of 54% over 2007
--  Stable gross margins of 21%
--  Closed the third tranche of $1,450,000 of funding
--  Issued 498,000 shares of Series B Preferred Stock
--  Recorded a deemed preferred stock dividend of $1,112,200 related to
    the issuance of warrants that were exchanged
    

Operating Results

Revenues for the three months ended June 30, 2008 increased $1,445,788 or 41% to $4,974,747, compared with revenues of $3,528,959 for the three months ended June 30, 2007. Revenues for the six months ended June 30, 2008 increased $3,371,562 or 54% to $9,611,626, compared with revenues of $6,240,064 for the six months ended June 30, 2007.

The Company experienced a net loss of $2,636,836 or $0.09 per share loss for the three months ended June 30, 2008 compared to a net loss of $1,499,245 or $0.04 per share for the comparable period in 2007. During this period, the Company reported a deemed preferred stock dividend of $1,112,200 related to the issuance of warrants that were exchanged. This non-recurring deemed preferred stock dividend negatively affected the earnings per share.

The Company experienced a net loss of $5,128,075 or $0.14 per share loss for the six months ended June 30, 2008 compared to net loss of $4,395,494 or $0.11 per share loss for the comparable period in 2007.

"Despite one of the worst economic landscapes in recent times, Juma has continued to grow our business and deliver quarter over quarter growth," said Chairman and Chief Executive Officer Anthony M. Servidio.

"Our second quarter earnings are a testament to the continued health and stability of our company and our future potential," said Servidio.

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, particularly for multi-location businesses. 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 solutions provider, is a wholly owned subsidiary of Juma and represents the company's services division.

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 are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934 (the "Exchange Act"), as amended. Actual results may differ materially from those included in the forward-looking statements. The Company intends such forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and is including this statement for purposes of complying with those safe-harbor provisions. 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 Statement 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,
                         2008          2007          2008          2007
                    ------------  ------------  ------------  ------------

Sales               $  4,974,747  $  3,528,959  $  9,611,626  $  6,240,064
Cost of goods sold     3,919,401     2,901,506     7,573,500     5,324,050
                    ------------  ------------  ------------  ------------
Gross margin           1,055,346       627,453     2,038,126       916,014
                    ------------  ------------  ------------  ------------

Operating expenses:
Selling                  536,546       629,552     1,057,105     1,309,276
Research and
 development             207,937       177,091       389,522       177,091
Goodwill impairment            -             -       204,600     1,995,259
General and
 administrative        2,362,709     1,276,974     4,621,774     2,068,062
                    ------------  ------------  ------------  ------------
Total operating
 expenses              3,107,192     2,083,617     6,273,001     5,549,688
                    ------------  ------------  ------------  ------------

(Loss) from
 operations           (2,051,846)   (1,456,164)   (4,234,875)   (4,633,674)

Interest income/
 (expense), net         (584,691)      (43,081)     (891,501)      (68,603)
                    ------------  ------------  ------------  ------------

(Loss) before
 income taxes         (2,636,537)   (1,499,245)   (5,126,376)   (4,702,277)
Provision/(Benefit)
 for income taxes            299             -         1,699      (306,783)
                    ------------  ------------  ------------  ------------

Net (loss)          $ (2,636,836) $ (1,499,245) $ (5,128,075) $ (4,395,494)
Deemed preferred
 stock dividend        1,112,200             -     1,112,200             -
                    ------------  ------------  ------------  ------------
Net (loss)
 attributable
 to common
 shareholders       $ (3,749,036) $ (1,499,245) $ (6,240,275) $ (4,395,494)
                    ============  ============  ============  ============

Basic and diluted
 net (loss)
 attributable to
 common shareholders
 per share          $      (0.09) $      (0.04) $      (0.14) $      (0.11)
                    ============  ============  ============  ============
Weighted average
 common shares
 outstanding          43,948,950    42,144,560    43,947,741    41,843,167
                    ============  ============  ============  ============



                 Juma Technology Corp. and Subsidiaries
                  Condensed Consolidated Balance Sheet


                                                 June 30,      December 31,
                                                   2008            2007
                                               (Unaudited)      (Audited)
ASSETS
------
Current assets:
  Cash                                       $     943,231   $     302,889
  Accounts receivable, (net of allowance of
   $196,955 and $0, respectively)                3,918,511       3,775,360
  Inventory                                        156,288         184,357
  Prepaid expenses                                  71,219         100,180
  Other current assets                             281,128         312,051
                                             -------------   -------------
      Total current assets                       5,370,377       4,674,837

Fixed assets, (net of accumulated
 depreciation of $643,243 and $540,344,
 respectively)                                   1,909,195       1,686,189

Other assets:
Security deposits                                  109,252         101,700
                                             -------------   -------------
      Total assets                           $   7,388,824   $   6,462,726
                                             =============   =============

LIABILITIES AND STOCKHOLDERS' DEFICIENCY
----------------------------------------
Current liabilities:
Convertible notes payable, (net of discount
 of $109,078 and $219,444, respectively)     $   1,292,288   $     905,556
  Current portion of capital leases payable        213,651         196,720
  Accounts payable                               3,042,386       2,564,353
  Accrued expenses and taxes payable             1,293,480         552,006
  Deferred revenue                               1,278,261         654,032
                                             -------------   -------------
      Total current liabilities                  7,120,066       4,872,667

Capital leases payable, net of current
 maturities                                        286,614         397,256
Convertible note payable, (net of discount
 of $441,541 and $484,376, respectively)         6,686,692       3,615,624
                                             -------------   -------------
      Total liabilities                         14,093,372       8,885,547
                                             -------------   -------------

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, 498,000 and 0
 shares issued and outstanding, respectively            50               -
Common stock, $0.0001 par value, 900,000,000
 shares authorized, 43,948,950 and 43,943,950
 shares issued and outstanding, respectively         4,394           4,394
Additional paid-in capital                      17,300,855      15,342,357
Retained deficit                               (24,010,680)    (17,770,405)
                                             -------------   -------------
      Total stockholders' deficiency            (6,704,548)     (2,422,821)
                                             -------------   -------------
      Total liabilities and stockholders'
       deficiency                            $   7,388,824   $   6,462,726
                                             =============   =============

Contact Information

  • Contact:
    Melissa Nacerino
    Juma Technology Corp
    646.291.8264
    Email Contact