KIRKLAND, Wash., Nov. 22, 2011 /PRNewswire/ -- [ CoroWare, Inc. ] (OTCBB: COWI) today announced its financial results for the third quarter ending on September 30, 2011.

For the quarter ending on September 30, 2011 ("the 2011 Period"), CoroWare ("the Company") reported revenues of $389,089 compared to revenues of $376,648 during the three-month period ended September 30, 2010 (the "2010 Period"). Revenues were flat compared to the previous year as customers continued to postpone spending on software development services for billing integration, custom engineering, and IT consulting projects in the summer months; purchased CoroCall hosted services instead of videoconferencing infrastructure and room systems; and delayed spending on mobile robotics projects until later in the calendar year.

Gross profit in the 2011 Period was $99,144 (25.5% gross profit percentage) compared to $133,027 (35.3% gross profit percentage) for the 2010 Period. The reduced gross profit percentage resulted from additional personal time off (PTO) during the summer months and unanticipated project warranty expenses.

Research and development spending was $20,372 (5.2% of gross revenues) for the 2011 Period compared to $51,097 (13.6% of gross revenues) in the 2010 Period. The decreased research and development investment resulted from completing our software development and testing initiatives, including CoroCall Communications Cloud Service and CoroWare Billing Integration Framework.

Operating expenses were $274,784 during the 2011 Period compared to $479,376 during the 2010 Period. Sales and marketing expenses were lower in the 2011 Period as the Company adjusted sales compensation plans to bring them in line with the Company's cost of sales objectives. Loss from operations was $175,640 during the 2011 Period compared to a loss of $346,349 in the 2010 Period.

Total other expense was $2,760,329 during the 2011 Period compared to $1,061,716 in the 2010 Period. Other expense is comprised primarily of derivative expenses and amortization of debt discount and deferred finance costs. Net loss for the 2011 Period was $2,935,969 compared to a net loss of $1,408,065 for the 2010 Period.

Net Cash Flows from Operating Activities was negative $57,922 for the 2011 Period compared to negative $2,893 for the 2010 Period. Net Cash Flows from Financing Activities was positive $78,162 for the 2011 Period compared to negative $600 for the 2010 Period.

"Although gross revenues during the summer months were below expectations, we were pleased to see sales begin to rebound in September and October," said Lloyd Spencer, CEO of CoroWare, Inc. "We look forward to continued revenue growth in the fourth quarter as HD videoconferencing infrastructure and room system sales and mobile robot sales improve."

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 Redmond, Washington, CoroWare is a solutions integrator with expertise in mobile robotics, personal telepresence, IT consulting and software development. 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.

Investor Relations Contact:

Lloyd Spencer

CoroWare

[ investor@coroware.com ]

(800) 641-2676 x703

SOURCE CoroWare, Inc.

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