KIRKLAND, Wash., Aug. 24, 2010 (GLOBE NEWSWIRE) -- CoroWare, Inc. (OTCBB:COWI) today announced its financial results for the quarter ended June 30, 2010.
During the three-month period ended June 30, 2010 (the "2010 Period") revenues were $632,813 compared to revenues of $416,117 during the three-month period ended June 30, 2009 (the "2009 Period"). Gross revenues improved compared to the previous quarter and year as customers increased spending on software development and IT consulting services, as well as videoconferencing products, solutions and services.
Gross Profit was $136,349 (21.5% gross profit percentage) for the 2010 Period compared to $162,528 (39.1% gross profit percentage) for the 2009 Period as a result of investing operational resources into CoroWare's CoroCall 2.0 HD videoconferencing service that management believes will result in new business in the coming months.
Operating Expenses were $374,478 during the 2010 Period compared to $267,691 during the 2009 Period. Selling expenses were higher in the 2010 Period as the Company increased its sales and marketing expenses to help increase major account sales of CoroCall and CoroWare's telepresence product sales in the coming months. As well, Research and development was $31,783 for the 2010 Period compared to $0 in the 2009 Period as a result of software development investments in CoroWare Usage Reporter for Vidyo Systems, CoroWare Billing Integration Framework for MetraTech and Vidyo, and CoroWare NameTag.
Loss from Operations was $238,129 during the 2010 Period compared to $105,163 in the 2009 Period. The increase in Loss from Operations was a result of increasing our Research and Development and Sales investments in telepresence to increase sales of CoroCall, CoroWare Billing Integration Framework in 2010.
Net Loss for the 2010 Period was $273,813 compared to net loss of $1,366,252 for the 2009 Period. The comparatively lower Net Loss during the 2010 Period was a result of reduced derivative expenses from debenture and warranty liabilities.
Net Cash Flows from Operating Activities was $63,893 for the 2010 Period compared to ($237,101) for the 2009 Period.
"We were pleased to see CoroWare's revenues rebound and positive net cash flows from operating activities this quarter," said Lloyd Spencer, CEO of CoroWare, Inc. "We look forward to continued growth of CoroWare's software development business as well as sales of HD videoconferencing products, solutions and CoroCall subscription services."
The full 10-Q report can be accessed by going to www.coroware.com, visiting the Investors page and clicking "Latest 10-Q filing."
About CoroWare
Headquartered in Kirkland, Washington, CoroWare is a solutions integrator with expertise in affordable telepresence, IT consulting and mobile robotics. For more information on CoroWare's products and services, please visit www.CoroWare.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: Except for historical information contained herein, the statements in this news release are forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause a company's actual results, performance and achievement in the future to differ materially from forecasted results, performance, and achievement. These risks and uncertainties are described in the Company's periodic filings with the Securities and Exchange Commission. The Company undertakes no obligation to publicly release the result of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof, or to reflect the occurrence of unanticipated events or changes in the Company's plans or expectations.