SOURCE: Juma Technology Corp

November 13, 2008 13:08 ET

Juma Technology Reports Third Quarter 2008 Earnings

Sales Revenue and Gross Margins Continue to Climb

FARMINGDALE, NY--(Marketwire - November 13, 2008) - Juma Technology Corp. (OTCBB: JUMT), a leading IP Convergence firm specializing in managed services, today reported financial results for the third quarter ended September 30, 2008.

Third Quarter 2008 Highlights

--  Record revenue of $5,825,309 for the period
--  Increase in revenue of 77% over 2007
--  Increase in gross margin of 394% over 2007
    

Operating Results

Revenues for the three months ended September 30, 2008 increased $2,528,371 or 77% to $5,825,309, compared with revenues of $3,296,938 for the three months ended September 30, 2007. Gross margin for the three months ended September 30, 2008 increased $1,482,879 or 394% to $1,859,357, compared to $376,478 for the three months ended September 30, 2007. The Company experienced a net loss of $2,712,221 for the three months ended September 30, 2008 compared to a net loss of $6,274,288 for the comparable period in 2007.

"Once again, Juma has demonstrated our company's stability and momentum as we continue to grow our business and contract new clients. This marks the fourth consecutive quarter of positive revenue growth," said Chairman and Chief Executive Officer, Anthony M. Servidio. "Our consistent growth, especially in today's tumultuous economy, clearly signifies the value that our services deliver and the strength of our management team in executing on our business plan," said Mr. Servidio.

"Without question, increasing sales in this economy is an impressive achievement," said Anthony Fernandez, Chief Financial Officer for Juma. "Equally important and noteworthy is the fact that we have successfully maintained our gross profit while reducing overall net loss."

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 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.

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 Sheet


                                         September 30,      December 31,
                                             2008              2007
                                          (Unaudited)        (Audited)
                                       ----------------  ----------------

ASSETS
Current assets:
Cash                                   $        410,677  $        302,889
Accounts receivable, (net of allowance
 of $358,292 and $0, respectively)            2,987,982         3,775,360
Inventory                                       162,543           184,357
Prepaid expenses                                 37,877           100,180
Other current assets                            267,973           312,051
                                       ----------------  ----------------
      Total current assets                    3,867,052         4,674,837
                                       ----------------  ----------------

Fixed assets, (net of accumulated
 depreciation of $343,984 and
 $540,344, respectively)                      1,594,343         1,686,189

Other assets:
Security deposits                                86,127           101,700
                                       ----------------  ----------------
      Total assets                     $      5,547,522  $      6,462,726
                                       ================  ================

LIABILITIES AND STOCKHOLDERS'
 DEFICIENCY
Current liabilities:
Notes payable                          $        299,776  $              -
Convertible notes payable, (net of
 discount of  $15,278 and $219,444,
 respectively)                                  534,723           905,556
Current portion of capital leases
 payable                                        216,028           196,720
Accounts payable                              2,604,297         2,564,353
Accrued expenses and taxes payable            1,805,495           552,006
Deferred revenue                                214,181           654,032
                                       ----------------  ----------------
      Total current liabilities               5,674,500         4,872,667

Capital leases payable, net of current
 maturities                                     244,014           397,256
Notes payable                                    86,825                 -
Convertible notes payable, (net of
 discount of  $198,042 and $484,376,
 respectively)                                6,801,957         3,615,624
                                       ----------------  ----------------
       Total liabilities                     12,807,296         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,
 1,310,500 and 0 shares issued and
 outstanding, respectively                          131                 -
Common stock, $0.0001 par value,
 900,000,000 shares authorized,
 45,524,685 and 43,943,950 shares
 issued and outstanding, respectively             4,552             4,394
Additional paid in capital                   19,457,611        15,342,357
Retained deficit                            (26,722,901)      (17,770,405)
                                       ----------------  ----------------
       Total stockholders' deficiency        (7,259,774)       (2,422,821)
                                       ----------------  ----------------
       Total liabilities and
        stockholders' deficiency       $      5,547,522  $      6,462,726
                                       ================  ================






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



               Three months    Three months   Nine months    Nine months
                   ended          ended         ended           ended
               September 30,  September 30,  September 30,  September 30,
                    2008           2007          2008            2007
               -------------  -------------  -------------  -------------
Sales          $   5,825,309  $   3,296,938  $  15,436,935  $   9,537,002
Cost of goods
 sold              3,965,952      2,920,460     11,539,452      8,244,510
               -------------  -------------  -------------  -------------
Gross margin       1,859,357        376,478      3,897,483      1,292,492
               -------------  -------------  -------------  -------------

Operating
 expenses
Selling              348,972        874,269      1,406,077      2,183,545
Research and
 development         239,581        232,936        629,103        410,027
Goodwill
 impairment                -       (425,779)       204,600      1,569,480
Consulting                 -        715,000              -        715,000
General and
 administrative    3,564,999      2,211,681      8,186,773      4,279,743
               -------------  -------------  -------------  -------------
Total
 operating
 expenses          4,153,552      3,608,107     10,426,553      9,157,795
               -------------  -------------  -------------  -------------

(Loss) from
 operations       (2,294,195)    (3,231,629)    (6,529,070)    (7,865,303)

Amortization
 of discount
 on notes           (107,078)    (2,973,220)      (655,538)    (2,973,220)
Interest
 (expense),
 net                (290,636)       (69,439)      (633,677)      (138,042)
               -------------  -------------  -------------  -------------

(Loss) before
 income taxes     (2,691,909)    (6,274,288)    (7,818,285)   (10,976,565)
(Benefit)/
 Provision for
 income taxes         20,312              -         22,011       (306,783)
               -------------  -------------  -------------  -------------
Net (loss)     $  (2,712,221) $  (6,274,288) $  (7,840,296) $ (10,669,782)
Deemed
 preferred
 stock
 dividend                  -              -      1,112,200              -
               -------------  -------------  -------------  -------------
Net (loss)
 attributable
 to common
 shareholders  $  (2,712,221) $  (6,274,288) $  (8,952,496) $ (10,669,782)
               =============  =============  =============  =============

Basic and
 diluted net
 (loss) per
 share         $       (0.06) $       (0.15) $       (0.20) $       (0.25)
               =============  =============  =============  =============
Weighted
 average
 common shares
 outstanding      44,718,084     43,120,864     44,206,378     42,275,329
               =============  =============  =============  =============

Contact Information

  • Contact:
    Melissa Nacerino
    Juma Technology Corp
    646.291.8264
    Email Contact