Time Spot ANNOUNCES RECORD FISCAL FIRST QUARTER REVENUE
TEMPE, Ariz, November 3, 2004 - Time Spot, Inc. (OTCBB: TMAM), a leading developer and marketer of time and labor management solutions, today announced unaudited financial results for its fiscal first quarter ended September 30, 2004.
Revenue for the quarter ended September 30, 2004 was $1,453,825, a 29% increase over revenue of $1,126,397 in the year-ago quarter. The net loss from operations for the quarter ended September 30, 2004 was $99,582, compared to a net loss from operations of $141,755 for the year-ago quarter and a net loss from operations of $304,644 for the sequential quarter ended June 30, 2004. The net loss for the quarter ended September 30, 2004 was $192,331, or $.01 per basic and diluted share, compared to a net loss of $161,573, or $.01 per basic and diluted share for the year-ago quarter, and a net loss of $396,463 or $.03 per basic and diluted share for the quarter ended June 30, 2004.
The Company experienced a gross profit in the quarter of 61% versus 54% in the prior year's quarter. The gross profit on professional services was 63% in the quarter versus 41% in the year-ago quarter, fueled by services performed for a Fortune 100 account. The revenue breakdown in the quarter was 54% generated from channel partners and 46% generated by corporate sales. This breakdown compares to 62% from channel partners and 38% from corporate sales in the year-ago quarter.
"We targeted our organic revenue growth at 20% - 30% compared to the same periods last year. I am pleased that we achieved the high end of that range in our first fiscal quarter. Deferred revenue increased by $331,000 in the quarter which, when combined with the increase in revenue in the quarter, resulted in a 40% increase in sales activity versus the quarter ended June 30, 2004. We also reduced the net loss by 51% versus the quarter ended June 30, 2004, which is a significant achievement, "stated Thomas Bednarik, President and CEO.
"More and more of our clients are opting for the hosted version of our web-based solution, NETtime® as evidenced by the revenue growth in this area of 46% over the same period last year. A large part of this growth is as a result of the strategy we have implemented relative to the private branding and co-branding of our NETtime solution. We now have over 50 partner companies that represent our solution to their base of customers. Recently, we have made investments in both hardware and software to support this service at the AT&T data center which hosts NETtime. These investments will provide us with increased capacity to support our growth and faster response times to our clientele." added Bednarik.
"We closed some significant orders in the quarter, most notably, an approximate $200,000 contract with the Phoenix Elementary School District for ExtendTime, which is the Cisco Certified version of our NETtime solution that runs on the client's Cisco IP Phones and VoIP network. This is a prime example of improving the ROI of a client's VoIP system purchase as we are adding our workforce management application on top of the client's existing infrastructure. The implementation of this system should be completed by calendar year-end.
On the partner side, we entered into agreements with 16 new resellers during the quarter and one large Human Resource Outsourcer (HRO). We believe our product suite is an excellent fit with the needs of the HRO's customers as they scale from small up to enterprise businesses. Additionally, our partner relationship with Intuit continues to move forward as we have closed eight new joint accounts in fiscal Q1," continued Bednarik.
The Company will hold a conference call today at 4:30 p.m. EST to discuss its first fiscal quarter results. To participate, call 800-865-4425 five minutes prior to the start of the call, or log on to www.kcsa.com for a live webcast of the call. There will also be a replay of the call available until November 10, 2004 by dialing 877-519-4471 and entering the access code 5341603.
About Time Spot, Inc.
Safe Harbor Statement
NETtime is a registered trademark of Time Spot, Inc. All other names are the property of their respective owners.
Time Spot, INC.