LOS GATOS, Calif., June 28, 2007 (PRIME NEWSWIRE) -- Semotus Solutions, Inc. (AMEX:DLK), an innovative leader of software solutions for enterprise mobility, today reported its results for the fiscal year ended March 31, 2007.
Anthony LaPine, Chairman and CEO of Semotus, noted: "This fiscal year has been particularly challenging due to the planned merger with CityTalk. The merger has consumed a large amount of management's time and resources, but with the downsizing of some of our non-core businesses, like Expand Beyond, and the recent sale of our legacy wireless financial data business, management is now able to focus its attention on our flagship product HiplinkXS."
Mr. LaPine continued: "The good news is we have maintained our AMEX listing while pursuing our merger strategy and AMEX compliance requirements. In addition, the focus on our flagship product HiplinkXS has resulted in a rapidly growing order pipeline. This combined with the move of our R&D off-shore and our corporate downsizing is expected to result in a significantly reduced burn rate.
"On the merger front, we have agreed to an extension on the CityTalk merger to June 28th. We are currently in discussions with CityTalk regarding another extension that will provide the time required for CityTalk to finalize its financing and for the SEC to complete its review of our proxy statement. After the completion of this current extension, the company will review all of its other options to ensure we continue to act in the best interest of the shareholders."
Financial highlights for the fiscal year ended March 31, 2007 compared to the fiscal year ended March 31, 2006:
-- Revenue decreased 33% to $1.6 million, down from $2.4 million
-- Gross profit margin on revenue decreased to 81% from 82%
-- Operating expenses decreased 6% to $3.3 million from $3.6 million
-- Net loss rose to $2.1 million ($693,000 was non cash charges due
to impairment, stock compensation and depreciation), or $0.06
loss per basic and diluted share, from $1.4 million ($122,000 was
non cash charges due to stock compensation and depreciation), or
$0.05 loss per basic and diluted share.
About Semotus Solutions
Founded in 1993, Semotus Solutions (AMEX:DLK) is a provider of software for the mobile enterprise, connecting people to critical business systems, information and processes. Semotus has a Fortune 1000 customer base including Lockheed Martin, Blue Cross Blue Shield, Coca-Cola, Hewlett Packard, Nextel Communications, JP Morgan Chase and The United Nations. Semotus Solutions' software provides mobility, convenience, efficiency and profitability in the areas of workforce automation, finance, health care and m-commerce. For more information, please visit the following web sites: www.semotus.com; www.hiplinkwireless.com; www.clickmarks.com; www.xb.com.
This press release contains forward-looking statements, which are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Words such as "intends," "believes," and similar expressions reflecting something other than historical fact are intended to identify forward-looking statements, but are not the exclusive means of identifying such statements. These forward-looking statements involve a number of risks and uncertainties, including the timely development and market acceptance of products and technologies, the ability to secure additional sources of finance, the ability to reduce operating expenses, and other factors described in the Company's filings with the Securities and Exchange Commission. The actual results that the Company achieves may differ materially from any forward-looking statement due to such risks and uncertainties. The Company undertakes no obligation to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.