MacroSolve Announces 164% Increase in Revenues for Fiscal 2011
Four Consecutive Quarters of Growth Driven by Mobile App Technologies & Licensing
TULSA, OK—March 14, 2012 – MacroSolve, Inc. (PINKSHEETS: MCVE) (OTCQB: MCVE) (“MacroSolve” or the “Company”), a leading provider of mobile technologies,
apps and solutions for business, today announced financial results for its fiscal year ended December 31, 2011.
Highlights for the 2011 fiscal year include:
- Revenues increased 164% to $1,686,000 from $638,000 in FY 2010
- Gross profit increased to $857,000 from $319,000 in FY 2010
- 4th quarter revenues grew by 621% to $757,000 in Q4 of 2011 from $105,000 in Q4 of 2010
- Gross profit in Q4 of 2011 was $387,000, a 453% increase over Q4 2010 gross profit of $70,000
- Revenues grew by 28% on a quarter-over-quarter basis from $593,000 in Q3 of 2011 to $757,000 in Q4 of 2011
- The Company’s distribution network supported growth in new sales of software products and solution services
Revenues for the twelve months ended December 31, 2011 were $1,686,000 as compared to $638,000 in the fiscal year ended December 31, 2010. This 164% rise is due to increased sales of the Company’s custom mobile app solution services as well as an increase in software and licensing.
Gross profit for fiscal 2011 rose 169% to $857,000 from $319,000 in fiscal 2010.
Operating expenses increased 56% in fiscal 2011 to $3,123,000 from $1,996,000 in 2010. Loss from operations was $2,226,000, up $589,000, or 35% over operating loss of $1,667,000 in fiscal 2010 due to increased non-cash consulting fees.
Net loss for fiscal 2011 was ($2,534,000) or $(0.02) per share, as compared to fiscal 2010 net loss of $(1,924,000), or $(0.03) per share, an increase of $610,000 or 32%. The increase was primarily due to non-cash consulting fees and accrued interest on 2010 and 2011 debentures. The Company improved its efficient use of cash in operations, with cash used in operating activities declining by $110,000 in fiscal 2011 as compared to fiscal 2010.
“During fiscal 2011 we made a strategic decision to invest in three areas: building a strong distribution network for our apps and development services; adding talented developers and sales people; and protecting our intellectual property rights. The quarterly trending in our financial results in 2011 clearly shows that this strategy is effective and we believe this is an early indicator of the rate of growth we anticipate for fiscal 2012. Our go-to-market Illume Mobile brand and our custom and productized mobile apps are gaining traction in the multi-billion* dollar industry in which we operate,” stated MacroSolve CEO and President, Steve Signoff.
“Having brought in management with a track record in building sales from technology and telecom products and increased our employee count from 17 in fiscal 2010 to 35 at the end of 2011, we strongly believe our talented, wholly U.S.-based sales, technology and development staff is a key support to our growth. Moreover, our Company has the backing of our board of directors who continue to invest in MacroSolve, with 45% of our common stock owned by officers and directors of the Company. We are determined and motivated to build value for all of our shareholders,” concluded Signoff.
For further information please see MacroSolve’s full 10K filing at www.sec.gov.
*According to Reseach2Guidance, the market for mobile application development services, including application creation, management, distribution and extension services, reached $20.5 billion in 2011 and will grow in value to $100 billion in 2015.
MACROSOLVE, INC.
STATEMENTS OF OPERATIONS
For the Years Ended December 31, 2011 2010
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SALES:
Software products and licensing $ 1,242,336 $ 63,200
Solution services 443,314 496,420
Hardware sales - 78,216
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Net sales 1,685,650 637,836
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COST OF SALES:
Software products and licensing 513,375 -
Solution services 315,467 253,741
Hardware sales - 65,195
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Total cost of sales 828,842 318,936
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Gross profit 856,808 318,900
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OPERATING EXPENSES:
Solution services 746,481 187,460
Depreciation and amortization 243,318 248,523
Marketing and sales 239,769 480,692
General and administrative 1,893,402 1,079,193
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Total operating expenses 3,122,970 1,995,868
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Loss from operations (2,266,162) (1,676,968)
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OTHER INCOME (EXPENSE):
Interest income 134 662
Interest expense (170,675) (138,833)
Loss on sale of asset (235) -
Stock based compensation (97,506) (108,404)
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Total other expense (268,282) (246,575)
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LOSS BEFORE INCOME TAXES (2,534,444) (1,923,543)
INCOME TAXES - -
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NET LOSS $ (2,534,444)$ (1,923,543)
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LOSS ALLOCABLE TO COMMON STOCKHOLDERS:
Net loss $ (2,534,444)$ (1,923,543)
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Loss allocable to common stockholders $ (2,534,444)$ (1,923,543)
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Basic and diluted loss per share $ (0.02)$ (0.03)
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MACROSOLVE, INC.
BALANCE SHEETS
12/31/2011 12/31/2010
ASSETS
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CURRENT ASSETS:
Cash $ 273,132 $ 187,025
Accounts receivable - trade 288,201 31,535
Prepaid expenses and other 240,388 50,324
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Total current assets 801,721 268,884
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PROPERTY AND EQUIPMENT, at cost: 285,976 254,088
Less - accumulated depreciation and
amortization (188,016) (162,194)
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Net property and equipment 97,960 91,894
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OTHER ASSETS:
Note receivable 135,577 135,577
Software development costs, net of
accumulated amortization of $36,316 and
$398,715 as of December 31, 2011 and
2010, respectively 1,280,903 938,942
Other assets 83,329 43,999
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Total other assets 1,499,809 1,118,518
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TOTAL ASSETS $ 2,399,490 $ 1,479,296
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Current maturities of long-term debt $ - $ 34,176
Revolving Line of Credit 100,000 -
Note Payable - Shareholder 169,306 -
Accounts payable - trade and accrued
liabilities 631,419 123,022
Unearned income 31,400 8,523
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Total current liabilities 932,125 165,721
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LONG-TERM DEBT, less current maturities
Oklahoma Technology Commercialization
Center 237,500 237,500
Convertible debentures 2,621,161 925,000
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Total long-term debt, less current
maturities 2,858,661 1,162,500
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COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Common stock, $.01 par value; authorized
500,000,000 shares; issued and
outstanding 122,386,894 and 98,690,490
shares, at December 31, 2011 and 2010,
respectively 1,223,869 986,905
Additional paid-in capital 10,059,029 9,303,920
Accumulated deficit (12,674,194) (10,139,750)
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Total stockholders' (deficit) equity (1,391,296) 151,075
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$ 2,399,490 $ 1,479,296
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About MacroSolve
MacroSolve, Inc., doing business as Illume Mobile™, is a pioneer in delivering mobile apps, technologies, and solutions. Leveraging its intellectual property portfolio, MacroSolve enforces its landmark patent while providing mobile app products and services under the name Illume Mobile. MacroSolve is positioned to become a leader in the mobile app space, which is projected to become a $17.5 billion market in 2012 according to Chetan Sharma Consulting. For more information, visit Illume Mobile.
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 Contact
info@illumemobile.com
Investor Contact:
Laurel Moody
(646) 810-0608
lmoody@corporateprofile.com
