CAMPBELL, Calif., August 5, 2014 – hopTo Inc. (OTCQB: HPTO), developer of the most comprehensive mobile productivity platform, announced today its financial results for the second quarter ended June 30, 2014.
Second Quarter Highlights
– Continued progress towards launch of hopTo Work
– Seven additional patents granted in Q2 2014
– GO-Global revenue up 1% and gross profit up 3%, year over year
Results for Second Quarter Ended June 30, 2014:
“We were very focused during the second quarter and continued to make great advances in building our SMB and Enterprise product, hopTo Work. We remain on track for a Q4 launch,” said Eldad Eilam, hopTo’s President and Chief Executive Officer. “We also launched version 2.2 of hopTo prosumer, which includes a Mac OSX File Connector, making it possible for even more people to take advantage of the hopTo productivity app.”
Additionally in the second quarter, hopTo was granted seven patents and continues to build a significant intellectual property portfolio. The total number of granted and allowed patents to date is 18, which includes the previously announced patents that were granted in July of this year. As a result of the Company’s efforts to protect the technological advancements in its on-going research and development and the desire to add value with additional potential revenue streams, the Company’s growing portfolio now consists of 170 applications.
“We recognized $1.4 million in revenues in the second quarter of 2014 from our legacy asset, GO-Global, a secure application publishing solution that provides remote access to Windows, UNIX and Linux applications from any location, platform, and OS. This was a year over year increase of nearly 1%. Gross profit from GO-Global was also up nearly 3% year over year to $1.3 million. This is primarily the result of further reducing product costs and support burden,” said Mr. Eilam.
The Company reported an operating loss of $1.46 million for the quarter ended June 30, 2014, which was virtually unchanged from the prior year period. The Company also reported a consolidated net loss of $980 thousand for the quarter. In the second quarter of the previous year, the Company reported a net gain of $3.3 million, which was primarily attributable to changes in the valuation of the Company’s warrants. Selling, general and administrative expenses were $1.42 million and R&D expenses were $1.33 million. R&D expenses slightly decreased by $46 thousand from Q2 2013 as the Company has implemented measures to optimize its development resources.
hopTo will host a conference call at 4:30 p.m. EDT on Tuesday, August 5, 2014 to discuss its results for the second quarter ended June 30, 2014. Investors in the U.S. interested in participating in the call should dial 1-877-407-9039 and request the hopTo Second Quarter call or reference passcode 13587683. Those calling from outside the U.S. should dial 1-201-689-8470 and request the hopTo Second Quarter call or reference passcode 13587683. A telephone replay will be available approximately two hours after the call concludes through August 19, 2014 by dialing 1-877-870-5176 from the U.S. or 1-858-384-5517 from international locations, with passcode 13587683.
A simultaneous live webcast will be available on the Investor Relations section of the
Company’s website at hopto.com and on the Company’s Investor Relations mobile app, powered by IRappTM. The webcast will be archived on the Company’s website for one year.
Founded in its current form in 2012, hopTo Inc. is an innovator of a unique mobile productivity workspace application. hopTo delivers a mobile experience that changes the way you work and live — empowering you to fully embrace a mobile lifestyle – without any compromises or boundaries. Search, Access, Aggregate, Create, Edit and Share your content from your mobile device, efficiently and effectively, by leveraging the power of your own “personal cloud.” The company is based in Campbell, CA.
For more information on hopTo, please visit: hopTo.com or hopTo.comTo.
FORWARD LOOKING STATEMENTS:
This press release contains statements that are forward looking as that term is defined by the United States Private Securities Litigation Reform Act of 1995. These statements include statements regarding future growth and the expected impact of our products on the marketplace, and the expected release dates of these products. These statements are based on management’s current expectations and are subject to a number of uncertainties and risks that could cause actual results to differ significantly from those described in the forward looking statements. Factors that may cause such a difference include the following: we have limited capital and a history of losses, limiting our ability to respond to unexpected delays in product introduction or in generating revenue; software product development is subject to various risks and uncertainties, including engineering challenges as well as the potential need to adjust
the features of a product to address market demand, which could delay an introduction on a timely basis; the success of our new products depends on a number of factors including market acceptance and our ability to manage the risks associated with new product introduction and developing and marketing new versions of the product; and other factors, including those set forth under Item 1A, “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2013, and in other documents we have filed with the SEC.