Spare Backup: Fiscal 4Q12 Financial Results

Spare Backup, Inc. announced its financial results for the fiscal year ended December 31, 2012.

Fiscal 2012 revenue increased by 35% to $539,000 as software launches begin to roll out.

Fiscal 2012 net loss narrowed to ($3.5 million) or ($0.01) per basic and diluted share, compared to a net loss of ($5.9 million) or ($0.02) per basic and diluted share in fiscal 2011.

Fiscal 2012 net cash used in operating activities decreased by 56% to $1.7 million, compared to net cashed used in operating activities of $3.8 million in fiscal 2011.

Financial Highlights
Revenues growth in fiscal 2012 was hampered by a delay in several launches with distribution partners due to upgrading its Spare Mobile software to accommodate the breadth of OSs currently available in the mobile phone market place, and to facilitate new software design applications.

For fiscal 2012, the company improved performance in several areas. While revenues increased modestly, selling, general and administrative expenses in fiscal 2012 declined by $3.6 million to $3.3 million. R&D expenses in fiscal 2012 also declined by 25% to $817,000. These significant declines in overall operating expenses are attributable to a decrease in equity based compensation to employees and consultants, outsourcing of customer support and certain development functions as well as savings resulting from our corporate relocation to Nevada which took place late in fiscal 2011 and the termination of an office lease in California in 2012. Operations resulted in a net loss of ($3.5 million), down from a net loss of ($5.9 million) in fiscal 2011.

Outlook
While the company’s improvement in overall revenue was modest due to delays in customer launches for our software, cost cutting and streamlining efforts resulted in significant overall improvements in income and cash flow statements. Both net loss and cash used in operating activities decreased and the firm intend to continue to look for ways to reduce overall expenses in fiscal 2013. It believes the major part of its development efforts to support Spare Mobile launches in Europe and the Middle East are completed and anticipates an acceleration of marketing launches by distribution partners in those geographic regions leading to a progressive sequential increase in quarterly revenue throughout fiscal 2013 and into 2014. The company intends to focus efforts in the coming quarters on accelerating revenue from its current and future distribution partners while continuing overall expense reduction efforts.

Commenting on our results for fiscal 2012, Cery Perle, chairman and CEO of Spare Backup, stated: "Fiscal 2012 was a year of significant change at our company as we made great strides in developing our mobile software capabilities while engaging in extensive streamlining and cost cutting measures. As a result, we believe we have positioned our product offerings to be capable of meeting the needs of our partners and anticipate this will lead to a significant improvement in our revenue in the fiscal 2013 year. Through our cost cutting efforts we have reduced our cash burn rate and we expect this trend to continue throughout 2013. With software launches in key areas expected to begin in earnest in 2013, we believe our company is poised to achieve sustained quarter over quarter revenue growth that will enable us to better align our costs with our revenue throughout the year and into 2014. We are confident that our Mobile product delivers a great value proposition to customers and anticipate our software will be well received as we launch, particularly in the mobile insurance and Telco space. We look forward to a significant improvement in the current year as we work diligently to improve our top and bottom line performance in 2013 and beyond."