Juma Reports Second Quarter 2009 Earnings

FARMINGDALE, NY--(Marketwire - August 13, 2009) - Juma Technology Corp. JUMT, a leading IP Convergence firm specializing in managed services, today reported financial results for the quarter ended June 30, 2009.

Second Quarter 2009 Highlights

-- Gross margin increased 3% over Q2 2008 -- Selling expenses decreased 26% over Q2 2008 -- Research and development expenses decreased 41% over Q2 2008

Operating Results

Revenues for the three months ended June 30, 2009 decreased $1,583,617 or 32% to $3,391,130, compared with revenues of $4,974,747 for the three months ended June 30, 2008. Gross margin for the three months ended June 30, 2009 increased $27,157 or 3% to $1,082,503, compared to $1,055,346 for the three months ended June 30, 2008. The Company incurred a net loss of $5,123,684 for the three months ended June 30, 2009 compared to a net loss of $2,636,836 for the comparable period in 2008. Included in the net loss of $5,123,684 was $2,611,036 related to amortization of discounts on notes.

"Despite this tough economy, our Company has maintained respectable revenue numbers while improving margins and reining in operating expenses," said Anthony M. Servidio, Chief Executive Officer for Juma. "While our main objective is always to grow revenue, create new clients and broaden our business opportunities, we are also savvy to the fact that improving margins and keeping expenses down are equally important. Our team continues to build a solid Company with magnificent potential. We are extremely excited about the positive momentum and what the future holds."

Anthony Fernandez, Chief Financial Officer for Juma, added, "Although revenue figures were slightly lower than last year, we have been able to retain our margins while weathering the overall economic conditions."

About Juma (www.jumacorp.com)

Juma Technology Corp. provides advanced IP Convergence solutions that integrate voice, data and video applications. Juma's IP Convergence solutions enable companies to increase productivity, enhance mobility and create significant cost savings. Juma has been recognized as an industry leader in providing integrated business communications and services, helping customers leverage network convergence to achieve their business goals. Nectar Services Corp., an IP communications and management services provider, is a wholly owned subsidiary of Juma and represents the company's services division. The Nectar suite of services delivers real business solutions to help companies mitigate risk, centralize systems management and dramatically reduce telecom expenses. Follow us on Twitter: www.twitter.com/jumatech.

Forward-Looking Statements

Historical results and trends should not be taken as indicative of future operations. Management's statements contained in this report that are not historical facts may be forward-looking statements under the Private Securities Litigation Act of 1995. Actual results may differ materially from those included in the forward-looking statements. Forward-looking statements, which are based on certain assumptions and describe future plans, strategies and expectations of the Company, are generally identifiable by use of the words "believe," "expect," "intend," "anticipate," "estimate," "project," "prospects," or similar expressions. The Company's ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors which could have a material adverse affect on the operations and future prospects of the Company on a consolidated basis include, but are not limited to: changes in economic conditions, legislative/regulatory changes, availability of capital, interest rates, competition, significant restructuring and acquisition activities, and generally accepted accounting principles. These risks and uncertainties should be considered in evaluating forward-looking statements and undue reliance should not be placed on such statements. Further information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is included herein and in the Company's other filings with the SEC.

Juma Technology Corp. and Subsidiaries Condensed Consolidated Balance Sheets June 30, December 31, 2009 2008 (Unaudited) (Audited) ------------- ------------- ASSETS Current assets: Cash $ 2,430,427 $ 364,046 Accounts receivable, (net of allowance of $261,340 and $391,501, respectively) 2,428,743 2,792,483 Inventory 78,564 254,531 Prepaid expenses 36,481 17,561 Other current assets 125,000 196,922 ------------- ------------- Total current assets 5,099,215 3,625,543 ------------- ------------- Fixed assets, (net of accumulated depreciation of $629,431 and $439,457, respectively) 1,361,932 1,512,535 Other assets 296,018 302,856 ------------- ------------- Total assets $ 6,757,165 $ 5,440,934 ============= ============= LIABILITIES AND STOCKHOLDERS' DEFICIENCY Current liabilities: Notes payable $ 347,705 $ 297,242 Convertible notes payable, (net of discount of $1,501,128 and plus premium of $93,669, respectively) 4,441,372 1,493,669 Current portion of capital leases payable 182,014 209,413 Accounts payable 2,261,998 2,809,419 Accrued expenses and taxes payable 454,229 615,939 Deferred revenue 112,884 1,021,914 ------------- ------------- Total current liabilities 7,800,202 6,447,596 Capital leases payable, net of current maturities 106,862 199,582 Notes payable - 43,818 Convertible notes payable, (plus premium of $747,722 and net of discount of $267,216, respectively) 6,747,722 5,732,784 Other liabilities 450,000 - ------------- ------------- Total liabilities 15,104,786 12,423,780 ------------- ------------- Commitments and contingencies Stockholders' deficiency Series A Preferred stock, $0.0001 par value, 8,333,333 shares authorized, 8,333,333 shares issued and outstanding, respectively 833 833 Series B Preferred stock, $0.0001 par value, 1,666,667 shares authorized, 1,666,500 and 1,666,500 shares issued and outstanding, respectively 167 167 Common stock, $0.0001 par value, 900,000,000 shares authorized, and 46,343,945 shares issued and outstanding, respectively 4,634 4,634 Additional paid in capital 31,731,863 21,225,245 Warrants 2,249,624 327,139 Retained deficit (42,334,742) (28,540,864) ------------- ------------- Total stockholders' deficiency (8,347,621) (6,982,846) ------------- ------------- Total liabilities and stockholders' deficiency $ 6,757,165 $ 5,440,934 ============= ============= Juma Technology Corp. and Subsidiaries Condensed Consolidated Statements of Operations For the three and six months ended June 30, Three months Three months Six months Six months ended ended ended ended June 30, June 30, June 30, June 30, 2009 2008 2009 2008 ------------ ------------ ------------ ------------ Sales $ 3,391,130 $ 4,974,747 $ 8,040,682 $ 9,611,626 Cost of goods sold 2,308,627 3,919,401 5,633,087 7,573,500 ------------ ------------ ------------ ------------ Gross margin 1,082,503 1,055,346 2,407,595 2,038,126 ------------ ------------ ------------ ------------ Operating expenses Selling 397,172 536,546 772,988 1,057,105 Research and development 123,241 207,937 256,599 389,522 Goodwill impairment - - - 204,600 General and administrative 2,764,944 2,362,709 4,243,623 4,621,774 ------------ ------------ ------------ ------------ Total operating expenses 3,285,357 3,107,192 5,273,210 6,273,001 ------------ ------------ ------------ ------------ (Loss) from operations (2,202,854) (2,051,846) (2,865,615) (4,234,875) Amortization of discount on notes (2,611,036) (395,504) (3,041,580) (541,460) Interest (expense), net (305,260) (189,187) (613,127) (350,041) ------------ ------------ ------------ ------------ (Loss) before income taxes (5,119,150) (2,636,537) (6,520,322) (5,126,376) Provision for income taxes 4,534 299 7,449 1,699 ------------ ------------ ------------ ------------ Net (loss) $ (5,123,684) $ (2,636,836) $ (6,527,771) $ (5,128,075) Deemed preferred stock dividend 1,666,667 1,112,200 7,266,107 1,112,200 ------------ ------------ ------------ ------------ Net (loss) attributable to common shareholders $ (6,790,351) $ (3,749,036) $(13,793,878) $ (6,240,275) ============ ============ ============ ============ Basic and diluted net (loss) per share attributable to common shareholders $ (0.15) $ (0.09) $ (0.30) $ (0.14) ============ ============ ============ ============ Weighted average common shares outstanding 46,343,945 43,948,950 46,343,945 43,947,741 ============ ============ ============ ============