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Thu, May 13, 2010

Juma Reports First Quarter 2010 Earnings


Published on 2010-05-13 13:40:38 - Market Wire
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FARMINGDALE, NY--(Marketwire - May 13, 2010) - Juma Technology Corp. (OTCBB: [ JUMT ]), a leading IP Convergence firm specializing in managed services, today reported financial results for the first quarter ended March 31, 2010.

Operating Results:

Revenues for the three months ended March 31, 2010 decreased $2,336,647 or 50% to $2,312,905, compared with revenues of $4,649,552 for the three months ended March 31, 2009. Research and development expenses decreased by $86,002 or 64% to $47,356 for the three months ended March 31, 2010, compared to $133,358 for the three months ended March 31, 2009. The Company incurred a net loss of $3,611,510 for the three months ended March 31, 2010 compared to a net loss of $7,003,527 for the three months ended March 31, 2009. Nectar generated a net loss of approximately $633,000 for the three months ended March 31, 2010.

"Our business has been affected by weak economic conditions and the vestiges of economic crisis, especially in the core markets that we focus on. We remain confident in our company and its people, and are witnessing improvements as both our company and our clients emerge from this down economy. We fully anticipate stronger growth in the months ahead," said Anthony M. Servidio, Chief Executive Officer for Juma.

Anthony Fernandez, Chief Financial Officer for Juma said, "Our conservative management approach has helped us maintain our margins and control costs, but the economy continues to be a burden on our business."

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. 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. ([ www.nectarcorp.com ]), 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. Follow us on Twitter: [ www.twitter.com/jumatech ].

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 Sheets March 31, December 31, 2010 2009 (Unaudited) (Audited) ----------- ----------- ASSETS Current assets: Cash $ 2,314,930 $ 961,001 Accounts receivable, (net of allowance of $206,653 and $213,471, respectively) 1,927,931 2,175,034 Inventory 157,288 161,770 Prepaid expenses 32,353 26,837 Other current assets 133,889 133,889 ----------- ----------- Total current assets 4,566,391 3,458,531 ----------- ----------- Fixed assets, (net of accumulated depreciation of $928,147 and $827,839, respectively) 1,134,697 1,224,120 Other assets 221,554 248,509 ----------- ----------- Total assets $ 5,922,642 $ 4,931,160 =========== =========== LIABILITIES AND STOCKHOLDERS' DEFICIENCY Current liabilities: Notes payable $ 297,951 $ 297,486 Convertible notes payable, (net of discount of $806,280 and $604,435, respectively) 14,723,079 12,099,346 Current portion of capital leases payable 139,998 174,115 Accounts payable 2,115,520 2,022,532 Accrued expenses and taxes payable 1,825,010 1,685,810 Deferred revenue 15,564 76,174 ----------- ----------- Total current liabilities 19,117,122 16,355,463 Capital leases payable, net of current maturities 13,878 25,466 Notes payable - - Convertible notes payable, (net of discount of $14,725 and $0, respectively) 636,506 700,000 ----------- ----------- Total liabilities 19,767,506 17,080,929 ----------- ----------- 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, 1,666,500 and 1,666,500 shares issued and outstanding, respectively 167 167 Series C Preferred Stock, $0.0001 par value, 10,000,000 shares authorized, no shares issued - - Common stock, $0.0001 par value, 900,000,000 shares authorized, 46,468,945 and 46,468,945 shares issued and outstanding, respectively 4,646 4,646 Additional paid in capital 33,921,009 32,901,105 Warrants 4,051,656 3,155,145 Retained deficit (51,823,175) (48,211,665) ----------- ----------- Total stockholders' deficiency (13,844,864) (12,149,769) ----------- ----------- Total liabilities and stockholders' deficiency $ 5,922,642 $ 4,931,160 =========== =========== Juma Technology Corp. and Subsidiaries Condensed Consolidated Statements of Operations For the three months ended March 31, March 31, March 31, 2010 2009 ----------- ----------- Sales $ 2,312,905 $ 4,649,552 Cost of goods sold 1,708,112 3,324,460 ----------- ----------- Gross margin 604,793 1,325,092 ----------- ----------- Operating expenses Selling 505,900 375,816 Research and development 47,356 133,358 General and administrative 1,681,701 1,478,679 ----------- ----------- Total operating expenses 2,234,957 1,987,853 ----------- ----------- (Loss) from operations (1,630,164) (662,761) Amortization of discount on notes (1,558,754) (430,545) Interest (expense), net (417,514) (307,866) ----------- ----------- (Loss) before income taxes (3,606,432) (1,401,172) (Benefit)/Provision for income taxes 5,078 2,915 ----------- ----------- Net (loss) $(3,611,510) $(1,404,087) Deemed preferred stock dividend - 5,599,440 ----------- ----------- Net (loss) attributable to common shareholders $(3,611,510) $(7,003,527) =========== =========== Basic and diluted net (loss) per share $ (0.08) $ (0.15) =========== =========== Weighted average common shares outstanding 46,468,945 46,343,945 =========== =========== 
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