MacroSolve Announces $923,000 Increase in Net Income for First Quarter 2013 Over First Quarter 2012

Second Consecutive Quarter of Net Income Driven by Mobile App Technologies & Licensing

Marketwired

TULSA, OK--(Marketwired - Apr 30, 2013) - MacroSolve, Inc. (OTCQB: MCVE) ("MacroSolve" or the "Company"), a leading provider of mobile technologies intellectual property, today announced financial results for its first quarter ended March 31, 2013.

Highlights for the first quarter of 2013 include:

  • Net income increased $923,000 to $218,000 in 1Q13 from $(705,000) net loss in 1Q12;
  • Net income from continuing operations increased $225,000 to $218,000 in 1Q13 from $(7,000) in 1Q12; and
  • Operating expenses decreased 49% to $155,000 in 1Q13 from $303,000 in 1Q12.

Net income for 1Q13 was $218,000 or $0.001 per share, as compared to the 1Q12 net loss of $(705,000), or $(0.004) per share, an increase of $923,000. The increase 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 $443,000 in 1Q13 as compared to 1Q12, resulting in a $378,000 increase in cash at March 31, 2013, which was $702,000 as compared to $325,000 on March 31, 2012.

Operating expenses decreased 49% in 1Q13 to $155,000 from $303,000 in 1Q12, as adjusted for the Illume Mobile divestiture. After the sale, the Company restructured its management and strategically reduced its operating overhead, resulting in $218,000 net income from continuing operations in 1Q13, a $225,000 increase from $(7,000) in 1Q12.

Revenues for 1Q13 were $666,000 as compared to $699,000 in 1Q12, as adjusted for the discontinuance of the Illume Mobile operations which was sold to DecisionPoint Systems, Inc. in July 2012. A significant source of revenue comes from the Company's enforcement of its '816' patent. The $(33,000), or 5% decrease, is attributable to fluctuations inherent to the nature of legal proceedings.

"The strategic restructuring of the Company following the divesture of Illume Mobile in 2012 is proving to be a sound one," stated CFO Kendall Carpenter. "We continue to execute on our plan for profitability, positive cash flow and debt reduction by monetizing our intellectual property and expanding our business and patent advisory services for small and medium-sized mobile app ventures. Our core management team has demonstrated their breadth of experience, leading to impressive first quarter results."

For further information please see MacroSolve's full 1Q13 10Q 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 and patent 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.

Financial Statements Follow

             
MACROSOLVE, INC.  
   
BALANCE SHEETS  
   
For the Periods Ended:   3/31/2013     12/31/2012  
             
ASSETS                
                 
CURRENT ASSETS:                
  Cash   $ 702,632     $ 659,204  
  Accounts receivable - trade     341,799       74,056  
  Prepaid expenses and other     11,604       519,330  
                   
    Total current assets     1,056,035       1,252,590  
                 
PROPERTY AND EQUIPMENT, at cost:     4,237       21,651  
  Less - accumulated depreciation and amortization     (1,154 )     (19,462 )
                 
    Net property and equipment     3,083       2,189  
                 
OTHER ASSETS:                
  Investment in DecisionPoint Systems, Inc.     730,433       579,875  
  Investment in MEDL Mobile Holdings, Inc.     60,272       -  
  Other assets     69,658       64,227  
                 
                 
    Total other assets     860,363       644,102  
                 
TOTAL ASSETS   $ 1,919,481     $ 1,898,881  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
CURRENT LIABILITIES:                
  Current maturities of long-term debt   $ 90,000     $ 90,000  
  Accounts payable - trade and accrued liabilities     180,379       84,062  
  Unearned income     -       500,000  
                 
    Total current liabilities     270,379       674,062  
                 
LONG-TERM DEBT, less current maturities                
  Note Payable - Shareholders     549,648       541,752  
  Oklahoma Technology Commercialization Center     102,500       125,000  
  Convertible debentures     150,000       150,000  
    Total long-term debt, less current maturities     802,148       816,752  
                 
COMMITMENTS AND CONTINGENCIES     -       -  
                 
STOCKHOLDERS' EQUITY:                
  Common stock, $.01 par value; authorized 500,000,000 shares; issued and outstanding 184,663,869 and 179,831,987 shares, at March 31, 2013 and December 31, 2012, respectively     1,846,639       1,798,320  
  Additional paid-in capital     13,241,670       13,230,111  
  Accumulated other comprehensive income     (9,295 )     (170,125 )
  Accumulated deficit     (14,232,060 )     (14,450,239 )
                 
    Total stockholders' equity (deficit)     846,954       408,067  
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY   $ 1,919,481     $ 1,898,881  
                 
                 
                 
MACROSOLVE, INC.            
             
STATEMENTS OF INCOME AND COMPREHENSIVE INCOME            
             
    For the Quarters Ended  
For the Quarters Ended March 31,   3/31/2013     3/31/2012  
                 
Net revenues   $ 666,098     $ 699,232  
                 
Cost of revenues     279,047       283,266  
                 
Gross profit     387,051       415,966  
                 
Selling, general and administrative expense     155,108       302,668  
                 
Income from operations     231,943       113,298  
                 
OTHER INCOME (EXPENSE):                
  Interest income     212       8  
  Interest expense     12,551       84,144  
  Loss on sale of asset     436       761  
  Stock based compensation     1,019       34,625  
                   
  Total other expense     13,794       119,522  
                 
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES     218,149       (6,224 )
                 
INCOME TAXES     -       -  
                 
NET INCOME (LOSS) FROM CONTINUING OPERATIONS     218,149       (6,224 )
                 
DISCONTINUED OPERATIONS (NOTE 11)                
  Loss from operations of discontinued Illume Mobile operations     -       (698,806 )
                 
NET INCOME (LOSS)     218,149       (705,030 )
                 
OTHER COMPREHENSIVE INCOME, net of tax                
  Unrealized holding loss arising during the period     (9,295 )     -  
                 
COMPREHENSIVE INCOME   $ 208,854     $ (705,030 )
                 
INCOME (LOSS) ALLOCABLE TO COMMON STOCKHOLDERS:                
  Net income (loss)   $ 218,149     $ (705,030 )
                 
  Income (loss) allocable to common stockholders   $ 218,149     $ (705,030 )
                 
Basic and diluted income (loss) per share   $ 0.001     $ (0.004 )
                 
                 
Contact:

MacroSolve Contact
info@macrosolve.com

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