FutureIT Announces Third Quarter 2009 Results

• Press Release
• Source: FutureIT Inc.
• On 11:03 am EST, Tuesday November 10, 2009

LOD, Israel, November 10 /PRNewswire-FirstCall/ -- FutureIT Inc. (FITI.OB), a leading provider of software solutions for the automated and effective management of Microsoft SQL servers, today announced its financial results for the third quarter of 2009.

GAAP revenue for the third quarter ended September 30, 2009 was $160,698 compared to $140,483 in the third quarter of 2008 and $155,270 in the second quarter of 2009. Total GAAP revenue in the first nine months of 2009 was $442,981 compared to $493,554 in the first nine months of 2008. Total operating expenses were reduced in the third quarter of 2009 to $301,613 compared to $436,755 in the third quarter of 2008 and $345,191 in the second quarter of 2009.

Non-GAAP sales for the third quarter 2009 were $93,198 compared to $140,687 in the third quarter of 2008 and $171,185 in the second quarter of 2009. Non-GAAP sales in the first nine months of 2009 were $402,813 compared to $413,759 in the first nine months of 2008.

Operating loss for the third quarter ended September 30, 2009 declined and was $153,379 compared to an operating loss of $341,443 in the third quarter of 2008 and $220,443 in the second quarter of 2009. Operating loss for the first nine months ended September 2009 declined by $287,908 to $595,359, from $883,267 in the nine months ended September 2008. The decrease in operational loss in the third quarter was not reflected due to the increase in financial expenses of $169,810. Net loss for the third quarter of 2009 was $277,432, or $(0.01) per share. This compares to a net loss of $292,598 or $(0.01) per share in the third quarter of 2008 and a loss of $365,167or $(0.01) per share in the second quarter of 2009. Net loss for the nine months ended September 30, 2009 was $ 818,682 or $(0.03) per share compared to $937,213 for the first nine months of 2008, or $(0.04) per share.

During the third quarter of 2009, FutureIT sold 55 licenses, increasing the number of licenses sold from inception to 1471 licenses.

Shmuel Bachar, FutureIT's CEO said "Although we have decreased our negative operational cash flow by $387,426 from $724,003 in the nine months ended September 2008 to $336,577 in the nine months ended September 2009, an influx of cash is still required. We maintain our efforts to raise capital, but understand that we cannot continue to successfully operate in the company's current framework without additional funding. Our limited cash flow continues to restrict our available budget for overseas sales and marketing and slows down the advancement of our research and development. In spite of this, we continue to market ourselves domestically, and in Central America, Russia, South Africa and Australia, and are receiving positive feedback from these regions".

About FutureIT

FutureIT is engaged in the development, marketing, sale and support of software products that provide easy-to-use comprehensive database management, backup and monitoring solutions for both small and medium sized enterprises, or SMEs, and larger enterprises, running different Microsoft Structured Query Language, or SQL servers, versions 2000, 2005 and 2008, as well as Microsoft SQL Server Desktop Engine, or MSDE and SQL Express.

Safe Harbor Statement

This press release contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Certain statements contained in this press release are "forward-looking statements" within the meaning of applicable federal securities laws, including, without limitation, anything relating or referring to future financial results and plans for future business development activities, and are thus prospective. Forward-looking statements are inherently subject to risks and uncertainties some of which cannot be predicted or quantified based on current expectations. Such risks and uncertainties include, without limitation, the risks and uncertainties set forth from time to time in reports filed by the Company with the Securities and Exchange Commission. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. Consequently, future events and actual results could differ materially from those set forth in, contemplated by, or underlying the forward-looking statements contained herein. The Company undertakes no obligation to publicly release updates to these forward-looking statements made to reflect new events or circumstances after the date hereof. Neither the Company nor its agents assume responsibility for the accuracy and completeness of the forward-looking statements.

    Consolidated Balance Sheet

                                                September 30, December 31,
                                                        2009          2008
                                                          (U.S. dollars)
                                                         (Unaudited)
    ASSETS
    Current assets
    Cash and cash equivalents                       $ 22,836       $44,445
    Trade account receivable                          29,133        43,846
    Other receivables and prepaid expenses             6,849        20,443
    Total current assets                              58,818       108,734
    Property and equipment
    Cost                                              56,249        54,695
    Less - Accumulated depreciation and
    amortization                                      42,422        31,552
    Property and equipment, net                       13,827        23,143

    Long-term deposits                                20,976         4,163

    Total assets                                     $93,621      $136,040

    LIABILITIES AND STOCKHOLDERS' DEFICIENCY
    Current liabilities
    Short-term loans from shareholders              $657,628      $234,210
    Current maturities of long-term debt             654,168       491,773
    Trade accounts payable                            81,830        43,540
    Other payables and accrued expenses              854,540       582,037
    Deferred revenue                                 218,979       155,399
    Total current liabilities                      2,467,145     1,506,959

    Long term loans
    Loan from bank                                   125,000       250,146
    Loan from related party                          162,499       324,997
    Total long term loans                            287,499       575,143

    Accrued severance pay, net                         5,407         5,225

    Stockholders' deficiency
    Share Capital - Common Stock of $
    0.0001 par value:

    Authorized -35,000,000 as of December
    31, 2008 and as of September 30, 2009;
    Issued and Outstanding - 24,340,000 as
    of December 31, 2008 and 24,390,000 as
    of September 30, 2009                              2,437        2,434
    Additional paid in capital                     2,194,428    2,090,892
    Accumulated deficiency                        (4,863,295)  (4,044,613)
    Total Stockholders' deficiency                (2,666,430)  (1,951,287)

    Total liabilities and Stockholders'
    deficiency                                       $93,621     $136,040


    Consolidated Statement of Operations (Unaudited)

                          For the Three            For the Nine Months
                              Months
                          Ended September 30        Ended September 30,

                             2009          2008      2009               2008

    Revenues            $ 160,698     $ 140,483  $442,981           $493,554

    Cost of                12,464        45,171    68,713            112,673
    revenues

    Gross profit          148,234        95,312   374,268            380,881

    Research and           38,074        65,866   149,471            178,494
    development
    expenses
    Selling and           106,238       104,760   280,697            347,136
    marketing
    expenses
    General and           157,301       266,129   539,459            738,518
    administrative

    Operating loss
    before
    financial            (153,379)     (341,443) (595,359)          (883,267)
    expenses, net

    Financial             120,965       (48,845)   216,817            52,685
    expenses
    (income), net

    Loss before           274,344       292,598   812,176            935,952
    taxes
    Taxes                   3,088             -     6,506              1,261

    Loss for the
    period               (818,682)     (937,213) (277,432)          (292.598)

    Basic and
    diluted net
    loss per share         $(0.01)       $(0.01)   $(0.03)            $(0.04)

    Number of
    shares used in
    computing
    basic and
    diluted net
    loss per share     24,382,663   24,340,000 24,354,744        24,340,000



    Contacts:

    FutureIT, Inc.
    Shmuel Bachar, CEO
    +972-8-925-8070
    Shmuelb@futureitsoft.com

    Sherry Kagan Segal, Marketing and PR Manager,
    +972-8-925-8156
    sherryks@futureitsoft.com

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