Time Spot ANNOUNCES THIRD QUARTER FISCAL 2006 RESULTS
SCOTTSDALE, Ariz, May 9, 2006 ? Time Spot, Inc. (OTCBB: TMAM), a leading developer and marketer of time and labor management solutions, today announced unaudited financial results for its third quarter ended March 31, 2006.
Revenue for the quarter ended March 31, 2006 was $1,723,160, a 6% increase over revenue of $1,628,957 in the year-ago quarter. The net loss from operations for the quarter ended March 31, 2006 was $(396,332), compared to a net loss from operations of $(223,098) for the year-ago quarter. The net loss for the quarter ended March 31, 2006 was $(452,412), or $(.03) per basic and diluted share, compared to a net loss of $(303,260) or $(.02) per basic and diluted share for the year-ago quarter.
Revenue for the nine-month period ended March 31, 2006 was $4,733,328, a 5% increase over revenue of $4,523,095 in the year-ago period. The net loss from operations for the nine-month period ended March 31, 2006 was $(1,431,130), compared to a net loss from operations of $(560,154) for the year-ago period. The net loss for the nine-month period ended March 31, 2006 was $(1,758,455), or $(.12) per basic and diluted share, compared to a net loss of $(794,259) or $(.06) per basic and diluted share for the year-ago period.
Effective on March 31, 2006, the Company and Unitime Systems, Inc. ("Unitime") closed on the sale of certain assets associated with the Company's direct sales business. The initial amount due of $530,000, which was paid on April 12, 2006, is included in accounts receivable in the accompanying balance sheet. Included in other income in the accompanying income statement is a gain on the sale in the amount of $426,000.
On January 3, 2006, the Company completed a recapitalization with an existing debt holder. The Company received gross proceeds of $941,000 in the transaction. In association with the transaction, the Company recorded a loss on extinguishment of the prior debt in the amount of $298,000.
Other significant events during the quarter and nine-month period that affected our results of operations included the following:
? In September 2005, the Company received a contract to provide a custom software and hardware solution to a Fortune 100 company. The Company is accounting for the software portion of the contract using the percentage of completion method for long-term contracts. In the current quarter the Company increased its estimated costs for development and recorded an additional estimated loss of approximately $125,000 for the software portion of this contract in the quarter. The total contract is for $2,150,000 and the Company expects to achieve a gross profit on the contract in whole as it is fulfilled over the next year.
?I am pleased to report the revenue increase when compared to the prior year?s quarter and a 20% reduction in the operating loss vs. the sequential quarter. We have undertaken various steps internally to reduce our expense structure going forward, as evidenced by the recent transition of employees to Unitime. In addition, this transaction will contribute additional revenues to the Company over the next twelve months as customer contracts are transitioned and select new sales opportunities take place,? stated Thomas Bednarik, President and CEO of Time Spot.
We have narrowed our focus to supporting and growing our reseller, partner and NetEdge data collection channels along with targeting specific key enterprise accounts,? continued Bednarik.
During the quarter, the Company experienced a 60% increase in its hosted NETtime service vs. the prior period last year. The reseller portion of this service grew at a rate of 282% vs. the same period last year. Also in the quarter, the business partner channel continued to experience growth and initiated the rollout of a new relationship with a leading payroll provider.
The Company will hold a conference call today at 4:30 p.m. EST to discuss its third fiscal quarter results. To participate, call 800-370-0898 and enter ID code 7353815 five minutes prior to the start of the call. The call will also be available through May 23, 2006 by calling 877-519-4471 and entering the PIN code: 7353815.
About Time Spot, Inc.
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.
NETtime is a registered trademark of Time Spot, Inc. All other names are the property of their respective owners.
Time Spot, INC.