InPlay Technologies Reports Second Quarter 2008 Financial Results

  
    
  
  
    
      InPlay Technologies (NASDAQ: NPLA) today announced financial results for 
      the three months ended June 30, 2008.
    
    
      Revenue for the second quarter 2008 was $299,000, down from $645,000 in 
      the comparable period during 2007. For the three month period in 2008, 
      revenue included $63,000 from the FinePoint segment and $235,000 from 
      the Duraswitch segment.
    
    
      InPlay reported a net loss for the quarter of $1.4 million, or $0.12 per 
      share, compared to a net loss of $1.6 million or $0.16 per share for the 
      second quarter of 2007.
    
    
      “Consistent with the first quarter, year over 
      year revenue is lower as we rebuild the sales pipeline for our digital 
      pen technology. We are encouraged by the market feedback on our 
      transformation of the company over the last year. We have strengthened 
      and expanded our technology platform, engaged top-tier manufacturing and 
      engineering resources and enhanced our customer support system,” 
      said InPlay chairman and CEO Steve Hanson.
    
    
      “We continue to focus on our top priorities: 
      solid execution on near-term customer opportunities, pursuit of new 
      prospects to fuel future growth, and management of cash resources,” 
      Hanson added.
    
    
      Conference Call
    
    
      InPlay Technologies will host a conference call today at 5:00 p.m. 
      Eastern Time. To participate on the live call, analysts and investors 
      should dial 800-257-1836 at least ten minutes prior to the call. To 
      participate on the live call from outside the U.S., dial 303-262-2194. 
      InPlay Technologies will also offer a live and archived webcast of the 
      conference call, accessible from the "Investor" section of the company’s 
      Web site (http://www.inplaytechnologies.com). 
      A telephonic replay of the conference call will also be available for 48 
      hours by dialing 800-405-2236 and entering passcode 11118070#.
    
    
      About InPlay Technologies
    
    
      InPlay Technologies is a developer of innovative human interface devices 
      for electronic products. The company's FinePoint division offers the 
      only digital-based pen-input solution for the rapidly growing mobile 
      computing market. With InPlay’s digital 
      technology, OEMs have an almost limitless roadmap for development of 
      new features and functions for their product designs. The Company’s 
      Duraswitch® brand of electronic switch 
      technologies couples the friendly tactile feedback of mechanical 
      pushbuttons and rotary dials with the highly reliable, thin profile of 
      membrane switches, enabling OEMs to create ergonomic, space saving input 
      panels for a wide range of applications. Visit www.inplaytechnologies.com 
      for more information.
    
    
      This news release contains certain “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, as amended. These forward-looking statements include 
      statements regarding our progress with potential customers and ability 
      to win new projects using our technologies, our estimation of the 
      benefits derived from our investment in technology development and 
      customer support, our ability to successfully manage our cash and attain 
      profitability. Risks and uncertainties that could cause results to 
      differ materially from those projected include our ability to raise and 
      maintain sufficient cash resources to fund our business plan, changes in 
      orders or timing from our licensees and customers, lack of market 
      acceptance of our products, general changes in demand in the personal 
      computing industry, pricing pressures, component shortages, 
      unanticipated expenses or other unforeseen difficulties related to 
      manufacturing our technologies and other uncertainties described from 
      time to time in our documents filed with the Securities and Exchange 
      Commission, including our Annual Report on Form 10-KSB for the year 
      ended December 31, 2007 as filed with the Securities and Exchange 
      Commission on March 24, 2008. These forward-looking statements represent 
      our beliefs as of the date of this press release and we disclaim any 
      intent or obligation to update these forward-looking statements.
    
    
    
    
      
        
          INPLAY TECHNOLOGIES, INC.
        
      
      
        
          CONSOLIDATED STATEMENTS OF OPERATIONS
        
      
      
        
          (Unaudited)
        
      
      
        
           
        
      
      
        
        
        
           
        
        
          
            Three Months EndedJune 30,
          
        
        
           
        
        
          
            Six Months EndedJune 30,
          
        
      
      
        
        
        
        
        
          2008
        
        
           
        
        
          2007
        
        
        
        
          2008
        
        
           
        
        
          2007
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          NET REVENUE:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          FinePoint
        
        
        
        
          $
        
        
          63,176
        
        
        
        
        
        
          $
        
        
          403,982
        
        
        
        
        
        
          $
        
        
          72,128
        
        
        
        
        
        
          $
        
        
          1,572,017
        
      
      
        
          Duraswitch:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Related party - Delphi
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
          7,631,250
        
      
      
        
          Non-related parties
        
        
        
        
           
        
        
          235,329
        
        
           
        
        
        
        
           
        
        
          240,983
        
        
           
        
        
        
        
           
        
        
          614,454
        
        
           
        
        
        
        
           
        
        
          507,953
        
      
      
        
          Total net revenue
        
        
        
        
        
        
          298,505
        
        
        
        
        
        
        
        
          644,965
        
        
        
        
        
        
        
        
          686,582
        
        
        
        
        
        
        
        
          9,711,220
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          COST OF GOODS SOLD:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          FinePoint
        
        
        
        
        
        
          4,178
        
        
        
        
        
        
        
        
          276,596
        
        
        
        
        
        
        
        
          13,796
        
        
        
        
        
        
        
        
          1,133,970
        
      
      
        
          Duraswitch
        
        
        
        
           
        
        
          83,929
        
        
           
        
        
        
        
           
        
        
          155,837
        
        
           
        
        
        
        
           
        
        
          204,858
        
        
           
        
        
        
        
           
        
        
          222,161
        
      
      
        
          Total cost of goods sold
        
        
        
        
           
        
        
          88,107
        
        
           
        
        
        
        
           
        
        
          432,433
        
        
           
        
        
        
        
           
        
        
          218,654
        
        
           
        
        
        
        
           
        
        
          1,356,131
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Gross profit
        
        
        
        
           
        
        
          210,398
        
        
           
        
        
        
        
           
        
        
          212,532
        
        
           
        
        
        
        
           
        
        
          467,928
        
        
           
        
        
        
        
           
        
        
          8,355,089
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          OPERATING EXPENSES:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Selling, general and administrative
        
        
        
        
        
        
          781,241
        
        
        
        
        
        
        
        
          1,579,945
        
        
        
        
        
        
        
        
          1,642,247
        
        
        
        
        
        
        
        
          3,063,931
        
      
      
        
          
            Research, development and commercial application engineering
          
        
        
        
        
        
        
          819,066
        
        
        
        
        
        
        
        
          404,565
        
        
        
        
        
        
        
        
          1,845,953
        
        
        
        
        
        
        
        
          742,723
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          Total operating expenses
        
        
        
        
           
        
        
          1,600,307
        
        
           
        
        
        
        
           
        
        
          1,984,510
        
        
           
        
        
        
        
           
        
        
          3,488,200
        
        
           
        
        
        
        
           
        
        
          3,806,654
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          INCOME (LOSS) FROM OPERATIONS
        
        
        
        
        
        
          (1,389,909
        
        
          )
        
        
        
        
        
        
          (1,771,978
        
        
          )
        
        
        
        
        
        
          (3,020,272
        
        
          )
        
        
        
        
        
        
          4,548,435
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          OTHER INCOME - Net
        
        
        
        
           
        
        
          10,028
        
        
           
        
        
        
        
           
        
        
          88,385
        
        
           
        
        
        
        
           
        
        
          43,910
        
        
           
        
        
        
        
           
        
        
          126,967
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          INCOME (LOSS) BEFORE INCOME TAXES
        
        
        
        
          $
        
        
          (1,379,881
        
        
          )
        
        
        
        
          $
        
        
          (1,683,593
        
        
          )
        
        
        
        
          $
        
        
          (2,976,362
        
        
          )
        
        
        
        
          $
        
        
          4,675,402
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          PROVISION FOR INCOME TAXES
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
          (33,672
        
        
          )
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
          93,508
        
      
      
        
        
        
        
        
           
        
        
           
        
        
           
        
        
        
        
           
        
        
           
        
        
           
        
        
        
        
           
        
        
           
        
        
           
        
        
        
        
           
        
        
           
        
      
      
        
          NET INCOME (LOSS)
        
        
        
        
          $
        
        
          (1,379,881
        
        
          )
        
        
        
        
          $
        
        
          (1,649,921
        
        
          )
        
        
        
        
          $
        
        
          (2,976,362
        
        
          )
        
        
        
        
          $
        
        
          4,581,894
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          EARNINGS (LOSS) PER SHARE - BASIC
        
        
        
        
          $
        
        
          (0.12
        
        
          )
        
        
        
        
          $
        
        
          (0.14
        
        
          )
        
        
        
        
          $
        
        
          (0.26
        
        
          )
        
        
        
        
          $
        
        
          0.40
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          EARNINGS (LOSS) PER SHARE - DILUTED
        
        
        
        
          $
        
        
          (0.12
        
        
          )
        
        
        
        
          $
        
        
          (0.14
        
        
          )
        
        
        
        
          $
        
        
          (0.26
        
        
          )
        
        
        
        
          $
        
        
          0.40
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          WEIGHTED AVERAGE SHARES OUTSTANDING:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          BASIC
        
        
        
        
           
        
        
          11,609,793
        
        
           
        
        
        
        
           
        
        
          11,505,382
        
        
           
        
        
        
        
           
        
        
          11,603,417
        
        
           
        
        
        
        
           
        
        
          11,503,886
        
      
      
        
          DILUTED
        
        
        
        
           
        
        
          11,609,793
        
        
           
        
        
        
        
           
        
        
          11,505,382
        
        
           
        
        
        
        
           
        
        
          11,603,417
        
        
           
        
        
        
        
           
        
        
          11,551,333
        
      
    
    
    
    
      
        
          INPLAY TECHNOLOGIES, INC.
        
      
      
        
          CONSOLIDATED BALANCE SHEETS
        
      
      
        
          (Unaudited)
        
      
      
        
           
        
      
      
        
        
        
           
        
        
          
            June 30,2008
          
        
        
           
        
        
          
            December 31,2007
          
        
      
      
        
          ASSETS
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          CURRENT ASSETS:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Cash and cash equivalents
        
        
        
        
          $
        
        
          1,740,899
        
        
        
        
        
        
          $
        
        
          5,592,412
        
        
        
      
      
        
          Restricted short term investment
        
        
        
        
        
        
          20,000
        
        
        
        
        
        
        
        
          -
        
        
        
      
      
        
          Accounts receivable
        
        
        
        
        
        
          156,879
        
        
        
        
        
        
        
        
          228,610
        
        
        
      
      
        
          Inventory
        
        
        
        
        
        
          194,470
        
        
        
        
        
        
        
        
          108,562
        
        
        
      
      
        
          Prepaid expenses and other current assets
        
        
        
        
           
        
        
          108,124
        
        
           
        
        
        
        
           
        
        
          128,932
        
        
           
        
      
      
        
          Total current assets
        
        
        
        
        
        
          2,220,372
        
        
        
        
        
        
        
        
          6,058,516
        
        
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          PROPERTY AND EQUIPMENT - Net
        
        
        
        
        
        
          489,094
        
        
        
        
        
        
        
        
          437,248
        
        
        
      
      
        
          GOODWILL
        
        
        
        
        
        
          1,321,240
        
        
        
        
        
        
        
        
          1,321,240
        
        
        
      
      
        
          PATENTS - Net
        
        
        
        
        
        
          1,152,059
        
        
        
        
        
        
        
        
          1,205,977
        
        
        
      
      
        
          OTHER ASSETS
        
        
        
        
           
        
        
          17,731
        
        
           
        
        
        
        
           
        
        
          17,731
        
        
           
        
      
      
        
          TOTAL ASSETS
        
        
        
        
          $
        
        
          5,200,496
        
        
           
        
        
        
        
          $
        
        
          9,040,712
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          LIABILITIES AND STOCKHOLDERS' EQUITY
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          CURRENT LIABILITIES:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Accounts payable
        
        
        
        
          $
        
        
          481,150
        
        
        
        
        
        
          $
        
        
          642,781
        
        
        
      
      
        
          Accrued salaries and benefits
        
        
        
        
        
        
          457,695
        
        
        
        
        
        
        
        
          777,987
        
        
        
      
      
        
          Accrued purchase commitments
        
        
        
        
        
        
          288,562
        
        
        
        
        
        
        
        
          558,000
        
        
        
      
      
        
          Other accrued expenses and other current liabilities
        
        
        
        
        
        
          343,734
        
        
        
        
        
        
        
        
          453,108
        
        
        
      
      
        
          Deferred revenue
        
        
        
        
           
        
        
          15,000
        
        
           
        
        
        
        
           
        
        
          15,695
        
        
           
        
      
      
        
          Total current liabilities
        
        
        
        
           
        
        
          1,586,141
        
        
           
        
        
        
        
           
        
        
          2,447,571
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          LONG-TERM LIABILITIES:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          Other non-current liabilities
        
        
        
        
           
        
        
          21,225
        
        
           
        
        
        
        
           
        
        
          173,228
        
        
           
        
      
      
        
          Total liabilities
        
        
        
        
           
        
        
          1,607,366
        
        
           
        
        
        
        
           
        
        
          2,620,799
        
        
           
        
      
      
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
           
        
      
      
        
          COMMITMENTS AND CONTINGENCIES
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          STOCKHOLDERS' EQUITY:
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
        
      
      
        
          
            Preferred stock, no par value, 10,000,000 shares authorized, no 
            shares issued and outstanding in 2008 and 2007
          
        
        
        
        
        
        
          -
        
        
        
        
        
        
        
        
          -
        
        
        
      
      
        
          
            Common stock, $.001 par value, 40,000,000 shares authorized in 
            2008 and 2007, 11,622,568 and 11,595,138 shares issued and 
            outstanding in 2008 and 2007, respectively
          
        
        
        
        
        
        
          11,623
        
        
        
        
        
        
        
        
          11,595
        
        
        
      
      
        
          Additional paid-in capital
        
        
        
        
        
        
          31,856,009
        
        
        
        
        
        
        
        
          31,706,458
        
        
        
      
      
        
          Accumulated deficit
        
        
        
        
           
        
        
          (28,274,502
        
        
          )
        
        
        
        
           
        
        
          (25,298,140
        
        
          )
        
      
      
        
          Total stockholders' equity
        
        
        
        
           
        
        
          3,593,130
        
        
           
        
        
        
        
           
        
        
          6,419,913
        
        
           
        
      
      
        
          TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
        
        
        
        
          $
        
        
          5,200,496
        
        
           
        
        
        
        
          $
        
        
          9,040,712