http://at.marketwire.com/accesstracking/AccessTrackingLogServlet?PrId=992994&ProfileId=051205&sourceType=1TULSA, OK -- (Marketwire) -- 03/05/13 -- MacroSolve, Inc. (OTCQB: MCVE) ("MacroSolve" or the "Company"), a leading provider of mobile technologies intellectual property, today announced financial results for its fiscal year ended December 31, 2012.
Highlights for the 2012 fiscal year include:
- Revenues increased 113% to $2,988,000 in FY 2012 from $1,404,000 in FY 2011;
- Gross profit increased 104% to $1,683,000 in FY 2012 from $858,000 in FY 2011;
- 4th quarter revenues grew by 154% to $982,000 in Q4 of 2012 from $637,000 in Q4 of 2011
- Gross profit in Q4 of 2012 was $561,000, a 148% increase over Q4 2011 gross profit of $379,000; and
- Revenues grew by 76% on a quarter-over-quarter basis from $559,000 in Q3 of 2012 to $982,000 in Q4 of 2011.
Revenues for the twelve months ended December 31, 2012 were $2,988,000 as compared to $1,404,000 in the fiscal year ended December 31, 2011. This $1,584,000 or 113% rise is due to increases in IP licensing and services.
Gross profit for fiscal 2012 rose 104% to $1,683,000 from $825,000 in fiscal 2011 primarily due to the sale of Illume Mobile in July and the elimination of its lower margin professional services.
Operating expenses increased 41% in fiscal 2012 to $3,025,000 from $2,139,000 in 2011 primarily due to expansion of Illume Mobile's sales and marketing in the first half of the year and one-time charges related to the divestiture of Illume Mobile. Loss from operations was $1,343,000, an increase of $30,000 or less than 1% over operating loss of $1,313,000 in fiscal 2011.
Net loss for fiscal 2012 was ($1,776,000) or $(0.01) per share, as compared to fiscal 2011 net loss of $(2,534,000), or $(0.02) per share, a decrease of ($758,000) or 30%. The decrease was primarily due to the sale of Illume Mobile and the elimination of its operating losses. The Company improved its use of cash in operations, with cash used in operating activities declining by $769,000 in fiscal 2012 as compared to fiscal 2011.
"During fiscal 2012, we made a strategic decision to sell the Illume Mobile business unit and implement a strategy towards debt elimination and profitability. As anticipated, we achieved positive cash flow and profitability in the fourth quarter. Our experienced management team is leveraging our unique position in the mobile app intellectual property space by providing advisory services to a portfolio of clients, including mobile app developers, fortified by intellectual property, which in combination can create substantial passive revenues and equity holdings for our shareholders," stated MacroSolve CEO and President, Jim McGill.
For further information please see MacroSolve's full 10-K filing at www.sec.gov.
About MacroSolve
Founded in 1997, MacroSolve is heralded for its robust IP portfolio, while advancing throughout the mobile apps era by innovating key technologies that have laid the foundation for apps and next-gen developers. Today, MacroSolve is empowering a new era of mobile innovators seeking advisory services and IP strength from a source of experience. For more information, visit www.macrosolve.com.
Safe Harbor Statement
This press release contains projections of future results and other forward-looking statements that involve a number of risks and uncertainties and are made pursuant to the Safe Harbor Provisions of the Private Securities Litigation Reform Act of 1995. Important factors that may cause actual results and outcomes to differ materially from those contained in the projections and forward-looking statements included in this press release are described in our publicly filed reports. Factors that could cause these differences include, but are not limited to, the acceptance of our products, lack of revenue growth, failure to realize profitability, inability to raise capital and market conditions that negatively affect the market price of our common stock. The Company disclaims any responsibility to update any forward-looking statements.
MACROSOLVE, INC.
BALANCE SHEETS
12/31/2012 12/31/2011
ASSETS
CURRENT ASSETS:
Cash $ 659,204 $ 273,132
Accounts receivable - trade 74,056 288,201
Prepaid expenses and other 519,330 240,388
----------- -----------
Total current assets 1,252,590 801,721
----------- -----------
PROPERTY AND EQUIPMENT, at cost: 21,651 285,976
Less - accumulated depreciation and
amortization (19,462) (188,016)
----------- -----------
Net property and equipment 2,189 97,960
----------- -----------
OTHER ASSETS:
Investment in DecisionPoint Systems, Inc. 579,875 -
Note receivable - 135,577
Software development costs, net of accumulated
amortization of $398,715 as of December 31,
2011 - 1,280,903
Other assets 64,227 83,329
----------- -----------
Total other assets 644,102 1,499,809
----------- -----------
TOTAL ASSETS $ 1,898,881 $ 2,399,490
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ 90,000 $ -
Revolving Line of Credit - 100,000
Note Payable - Shareholders - 169,306
Accounts payable - trade and accrued
liabilities 84,062 631,419
Unearned income 500,000 31,400
----------- -----------
Total current liabilities 674,062 932,125
----------- -----------
LONG-TERM DEBT, less current maturities
Note Payable - Shareholders 541,752 -
Oklahoma Technology Commercialization Center 125,000 237,500
Convertible debentures 150,000 2,621,161
----------- -----------
Total long-term debt, less current
maturities 816,752 2,858,661
----------- -----------
COMMITMENTS AND CONTINGENCIES - -
----------- -----------
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value; authorized
500,000,000 shares; issued and outstanding
179,831,987 and 122,386,894 shares, at
December 31, 2012 and 2011, respectively 1,798,320 1,223,869
Additional paid-in capital 13,230,111 10,059,029
Accumulated other comprehensive income (170,125) -
Accumulated deficit (14,450,239) (12,674,194)
----------- -----------
Total stockholders' equity (deficit) 408,067 (1,391,296)
----------- -----------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 1,898,881 $ 2,399,490
=========== ===========
MACROSOLVE, INC.
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
For the Quarters Ended
For the Years Ended
December 31, 12/31/2012 12/31/2011 2012 2011
REVENUES:
Software products and
licensing $ 969,501 $ 636,677 $ 2,529,663 $ 1,141,332
Solution services 12,875 - 458,730 262,871
----------- ----------- ----------- -----------
Net revenues 982,376 636,677 2,988,393 1,404,203
----------- ----------- ----------- -----------
COST OF REVENUES:
Software products and
licensing 411,513 258,156 1,031,005 433,515
Solution services 9,624 - 274,848 145,413
----------- ----------- ----------- -----------
Total cost of revenues 421,137 258,156 1,305,853 578,928
----------- ----------- ----------- -----------
Gross profit 561,238 378,521 1,682,540 825,275
----------- ----------- ----------- -----------
OPERATING EXPENSES:
Solution services - - 323,167 144,542
Depreciation and
amortization 815 815 491,176 125,285
Marketing and sales - - 816,273 348,969
General and
administrative 133,815 251,667 1,394,455 1,519,779
----------- ----------- ----------- -----------
Total operating
expenses 134,629 252,481 3,025,071 2,138,575
----------- ----------- ----------- -----------
Income from operations 426,609 126,040 (1,342,531) (1,313,300)
----------- ----------- ----------- -----------
OTHER INCOME (EXPENSE):
Interest income 111 30 164 134
Interest expense (12,846) (76,550) (150,951) (170,675)
Loss on sale of asset - - (4,247) (235)
Stock based
compensation (9,909) (23,221) (83,872) (97,506)
----------- ----------- ----------- -----------
Total other expense (22,644) (99,741) (238,906) (268,282)
----------- ----------- ----------- -----------
LOSS FROM CONTINUNIG
OPERATIONS BEFORE
INCOME TAXES 403,965 26,299 (1,581,437) (1,581,582)
INCOME TAXES - - - -
----------- ----------- ----------- -----------
NET LOSS FROM CONTINUING
OPERATIONS $ 403,965 $ 26,299 $(1,581,437) $(1,581,582)
DISCONTINUED OPERATIONS
(NOTE 16)
Loss from operations
of discontinued
Illume Mobile
operations (including
loss on disposal of
$54,538) (14,670) (715,940) (194,608) (952,832)
----------- ----------- ----------- -----------
NET LOSS 389,295 (689,641) (1,776,045) (2,534,414)
OTHER COMPREHENSIVE
INCOME, net of tax
Unrealized holding
loss arising during
the period (63,053) - (170,125) -
----------- ----------- ----------- -----------
COMPREHENSIVE INCOME 326,242 (689,641) (1,946,170) (2,534,414)
=========== =========== =========== ===========
LOSS ALLOCABLE TO COMMON
STOCKHOLDERS:
Net Income (Loss) $ 389,295 $ (689,641) $(1,776,045) $(2,534,414)
----------- ----------- ----------- -----------
Income (Loss)
allocable to common
stockholders $ 389,295 $ (689,641) $(1,776,045) $(2,534,414)
=========== =========== =========== ===========
Basic and diluted income
(loss) per share $ 0.00 $ (0.01) $ (0.01) $ (0.02)
=========== =========== =========== ===========
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Contact:
MacroSolve Contact
info@macrosolve.com