Time Spot Press Releases
Time Spot ANNOUNCES SECOND QUARTER FISCAL 2006 RESULTS
SCOTTSDALE, Ariz, February 8, 2006 ? Time Spot, Inc. (OTCBB: TMAM), a leading developer and marketer of time and labor management solutions, today announced unaudited financial results for its second quarter ended December 31, 2005.
Revenue for the quarter ended December 31, 2005 was $1,539,355, a 7% increase over revenue of $1,440,312 in the year-ago quarter. The net loss from operations for the quarter ended December 31, 2005 was $(498,727), compared to a net loss from operations of $(237,474) for the year-ago quarter. The net loss for the quarter ended December 31, 2005 was $(630,928), or $(.04) per basic and diluted share, compared to a net loss of $(298,668) or $(.02) per basic and diluted share for the year-ago quarter.
Revenue for the six-month period ended December 31, 2005 was $3,010,168, a 4% increase over revenue of $2,894,137 in the year-ago period. The net loss from operations for the six-month period ended December 31, 2005 was $(1,071,957), compared to a net loss from operations of $(337,056) for the year-ago period. The net loss for the six-month period ended December 31, 2005 was $(1,343,203), or $(.09) per basic and diluted share, compared to a net loss of $(490,999) or $(.04) per basic and diluted share for the year-ago period.
Significant events during the quarter and six-month period that affected our results of operations included the following:
? The Company prepared and filed a registration statement for the underlying shares and warrants of a June 2005 convertible loan facility, and as a result, incurred approximately $60,000 in associated expenses.
? The Company is carrying approximately $980,000 in additional current and long-term debt at December 31, 2005 compared to December 31, 2004. As a result, interest expense in the current quarter increased $51,000 over the prior year quarter.
? The Company adopted Financial Accounting Standards Boards Statement No. 123 (?SFAS 123(R)?) ?Share-Based Payment? in the current fiscal year. SFAS 123(R) requires all share-based payments to employees and board members, including the grant of stock options, to be recognized in the income statement based on their fair values. The Company previously presented this expense as a pro forma disclosure. Non-cash compensation expense of $104,000 was recognized under SFAS 123(R) in the current six-month period
?The Company achieved revenue growth in the current quarter of 7%, which represents the fifteenth consecutive quarter of revenue growth vs. the prior year period. In addition, services revenue increased 37% for the three-month period ended December 31, 2005 vs. the same period in 2004,? stated Thomas Bednarik, President and CEO.
?We increased our hosted revenue business with our partners by over 105% in the quarter vs. the same period last year. The Company also recently formed a new subsidiary, NetEdge Devices LLC, to distribute its TA7000 family of data collection devices as a private label solution to software application development companies, systems integration providers and value-added resellers. We have received significant interest from a number of prospective partners that wish to utilize the open architecture of the TA7000 data collection series devices which allows them to fully control, develop and integrate their own proprietary applications into the unit,? added Bednarik.
Also in the quarter, the Company continued its efforts to customize and further develop its security and workforce management solution for delivery to a Fortune 100 company over the next three fiscal quarters. The Company has invested a significant amount of capital and human resources to support this contract and expects to realize the benefit of these efforts over the delivery period.
The Company will hold a conference call today at 4:30 p.m. EST to discuss its second fiscal quarter results. To participate, call 800-370-0898 and enter ID code 7000729 five minutes prior to the start of the call. The call will also be available through February 22, 2006 by calling 877-519-4471 and entering the PIN code: 7000729.
About Time Spot, Inc.
Time Spot, Inc. is an innovative provider of web-based, client-server and desktop workforce management solutions. Operating since 1988, Time Spot has helped over 25,000 customers across a multitude of sizes and industries effectively track employee time and attendance, better manage labor resources, and improve payroll processing. The Deloitte Group has honored Time Spot as one of the 500 fastest growing technology companies in North America.
Certain information and comments contained in this press release may be forward-looking statements (within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Factors set forth in the Company's Annual Report on Form 10-KSB for the fiscal year ended June 30, 2005, and subsequently filed Form 10-QSBs and Form 8-Ks, together with other factors that appear in this press release or in the Company's other Securities and Exchange Commission filings could affect the Company's actual results and could cause the Company's actual results to differ materially from those expressed in any forward-looking statements made by, or on behalf of the Company, in this press release.
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