SOURCE: MacroSolve, Inc.

March 05, 2013 08:00 ET

MacroSolve Announces 104% Increase in Gross Profit for Fiscal 2012

Eight Consecutive Quarters of Growth Driven by Mobile App Technologies & Licensing

TULSA, OK--(Marketwire - Mar 5, 2013) - MacroSolve, Inc. (OTCQB: MCVE) ("MacroSolve" or the "Company"), a leading provider of mobile technologies intellectual property, today announced financial results for its fiscal year ended December 31, 2012.

Highlights for the 2012 fiscal year include:

  • Revenues increased 113% to $2,988,000 in FY 2012 from $1,404,000 in FY 2011;
  • Gross profit increased 104% to $1,683,000 in FY 2012 from $858,000 in FY 2011;
  • 4th quarter revenues grew by 154% to $982,000 in Q4 of 2012 from $637,000 in Q4 of 2011
  • Gross profit in Q4 of 2012 was $561,000, a 148% increase over Q4 2011 gross profit of $379,000; and
  • Revenues grew by 76% on a quarter-over-quarter basis from $559,000 in Q3 of 2012 to $982,000 in Q4 of 2011.

Revenues for the twelve months ended December 31, 2012 were $2,988,000 as compared to $1,404,000 in the fiscal year ended December 31, 2011. This $1,584,000 or 113% rise is due to increases in IP licensing and services.

Gross profit for fiscal 2012 rose 104% to $1,683,000 from $825,000 in fiscal 2011 primarily due to the sale of Illume Mobile in July and the elimination of its lower margin professional services.

Operating expenses increased 41% in fiscal 2012 to $3,025,000 from $2,139,000 in 2011 primarily due to expansion of Illume Mobile's sales and marketing in the first half of the year and one-time charges related to the divestiture of Illume Mobile. Loss from operations was $1,343,000, an increase of $30,000 or less than 1% over operating loss of $1,313,000 in fiscal 2011. 

Net loss for fiscal 2012 was ($1,776,000) or $(0.01) per share, as compared to fiscal 2011 net loss of $(2,534,000), or $(0.02) per share, a decrease of ($758,000) or 30%. The decrease was primarily due to the sale of Illume Mobile and the elimination of its operating losses. The Company improved its use of cash in operations, with cash used in operating activities declining by $769,000 in fiscal 2012 as compared to fiscal 2011.

"During fiscal 2012, we made a strategic decision to sell the Illume Mobile business unit and implement a strategy towards debt elimination and profitability. As anticipated, we achieved positive cash flow and profitability in the fourth quarter. Our experienced management team is leveraging our unique position in the mobile app intellectual property space by providing advisory services to a portfolio of clients, including mobile app developers, fortified by intellectual property, which in combination can create substantial passive revenues and equity holdings for our shareholders," stated MacroSolve CEO and President, Jim McGill. 

For further information please see MacroSolve's full 10-K filing at www.sec.gov.

About MacroSolve
Founded in 1997, MacroSolve is heralded for its robust IP portfolio, while advancing throughout the mobile apps era by innovating key technologies that have laid the foundation for apps and next-gen developers. Today, MacroSolve is empowering a new era of mobile innovators seeking advisory services and IP strength from a source of experience. For more information, visit www.macrosolve.com.

Safe Harbor Statement
This press release contains projections of future results and other forward-looking statements that involve a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Important factors that may cause actual results and outcomes to differ materially from those contained in the projections and forward-looking statements included in this press release are described in our publicly filed reports. Factors that could cause these differences include, but are not limited to, the acceptance of our products, lack of revenue growth, failure to realize profitability, inability to raise capital and market conditions that negatively affect the market price of our common stock. The Company disclaims any responsibility to update any forward-looking statements.

MACROSOLVE, INC.            
             
BALANCE SHEETS            
             
    12/31/2012     12/31/2011  
                 
ASSETS                
                 
CURRENT ASSETS:                
  Cash   $ 659,204     $ 273,132  
  Accounts receivable - trade     74,056       288,201  
  Prepaid expenses and other     519,330       240,388  
    Total current assets     1,252,590       801,721  
PROPERTY AND EQUIPMENT, at cost:     21,651       285,976  
  Less - accumulated depreciation and amortization     (19,462 )     (188,016 )
    Net property and equipment     2,189       97,960  
OTHER ASSETS:                
  Investment in DecisionPoint Systems, Inc.     579,875       -  
  Note receivable     -       135,577  
  Software development costs, net of accumulated amortization of $398,715 as of December 31, 2011    
-
     
1,280,903
 
  Other assets     64,227       83,329  
    Total other assets     644,102       1,499,809  
TOTAL ASSETS   $ 1,898,881     $ 2,399,490  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
  Current maturities of long-term debt   $ 90,000     $ -  
  Revolving Line of Credit     -       100,000  
  Note Payable - Shareholders     -       169,306  
  Accounts payable - trade and accrued liabilities     84,062       631,419  
  Unearned income     500,000       31,400  
     Total current liabilities     674,062       932,125  
LONG-TERM DEBT, less current maturities                
  Note Payable - Shareholders     541,752       -  
  Oklahoma Technology Commercialization Center     125,000       237,500  
  Convertible debentures     150,000       2,621,161  
    Total long-term debt, less current maturities     816,752       2,858,661  
COMMITMENTS AND CONTINGENCIES     -       -  
STOCKHOLDERS' EQUITY:                
  Common stock, $.01 par value; authorized 500,000,000 shares; issued and outstanding 179,831,987 and 122,386,894 shares, at December 31, 2012 and 2011, respectively  
 
 
 
 
 
 
 
1,798,320
 
 
 
 
 
 
 
 
 
 
 
1,223,869
 
 
 
  Additional paid-in capital     13,230,111       10,059,029  
  Accumulated other comprehensive income     (170,125 )     -  
  Accumulated deficit     (14,450,239 )     (12,674,194 )
    Total stockholders' equity (deficit)     408,067       (1,391,296 )
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 1,898,881     $ 2,399,490  
                 
                 
 
MACROSOLVE, INC.
 
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
 
    For the Quarters Ended
For the Years Ended
December 31,
  12/31/2012   12/31/2011   2012   2011
                         
REVENUES:                        
  Software products and licensing   $ 969,501   $ 636,677   $ 2,529,663   $ 1,141,332
  Solution services     12,875     -     458,730     262,871
                         
  Net revenues     982,376     636,677     2,988,393     1,404,203
                         
COST OF REVENUES:                        
  Software products and licensing     411,513     258,156     1,031,005     433,515
  Solution services     9,624     -     274,848     145,413
                         
  Total cost of revenues     421,137     258,156     1,305,853     578,928
                         
  Gross profit     561,238     378,521     1,682,540     825,275
                         
OPERATING EXPENSES:                        
  Solution services     -     -     323,167     144,542
  Depreciation and amortization     815     815     491,176     125,285
  Marketing and sales     -     -     816,273     348,969
  General and administrative     133,815     251,667     1,394,455     1,519,779
                         
  Total operating expenses     134,629     252,481     3,025,071     2,138,575
                         
  Income from operations     426,609     126,040     (1,342,531)     (1,313,300)
                         
OTHER INCOME (EXPENSE):                        
  Interest income     111     30     164     134
  Interest expense     (12,846)     (76,550)     (150,951)     (170,675)
  Loss on sale of asset     -     -     (4,247)     (235)
  Stock based compensation     (9,909)     (23,221)     (83,872)     (97,506)
                         
  Total other expense     (22,644)     (99,741)     (238,906)     (268,282)
                         
LOSS FROM CONTINUNIG OPERATIONS BEFORE INCOME TAXES     403,965     26,299     (1,581,437)     (1,581,582)
                         
INCOME TAXES     -     -     -     -
                         
NET LOSS FROM CONTINUING OPERATIONS   $ 403,965   $ 26,299   $ (1,581,437)   $ (1,581,582)
                         
DISCONTINUED OPERATIONS (NOTE 16)                        
  Loss from operations of discontinued Illume Mobile operations (including loss on disposal of $54,538)     (14,670)     (715,940)     (194,608)     (952,832)
                         
NET LOSS     389,295     (689,641)     (1,776,045)     (2,534,414)
                         
OTHER COMPREHENSIVE INCOME, net of tax                        
  Unrealized holding loss arising during the period     (63,053)     -     (170,125)     -
                         
COMPREHENSIVE INCOME     326,242     (689,641)     (1,946,170)     (2,534,414)
                         
LOSS ALLOCABLE TO COMMON STOCKHOLDERS:                        
  Net Income (Loss)   $ 389,295   $ (689,641)   $ (1,776,045)   $ (2,534,414)
                           
  Income (Loss) allocable to common stockholders   $ 389,295   $ (689,641)   $ (1,776,045)   $ (2,534,414)
                           
Basic and diluted income (loss) per share   $ 0.00   $ (0.01)   $ (0.01)   $ (0.02)
                         

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