NeoMedia Technologies Inc. (OTC: NEOM) pulled back almost 61% Monday with no news driving the decline. Shares in the mobile barcode scanning services provider enjoyed over 160% increase Friday on heavy volume of over 287 million shares. The upward movement also came without any news from the Company.
NEOM shares earlier this month saw a huge appreciation following U.S. Patent and Trademark Office (USPTO) has awarded it a patent pertaining to the resolution of mobile barcodes, a market which it said has recently experienced explosive growth. According to the company, the recently issued patent is part of an intellectual property portfolio that includes more than fifty issued and pending patent applications in this space.
“We are delighted that the USPTO has issued the ‘597 patent, which combined with our already formidable patent portfolio continues allowing us to realize the potential of our innovations and the first class services we offer our partners.” commented Laura Marriott, CEO of NeoMedia Technologies.
NeoMedia provides 2D mobile barcode technology and infrastructure solutions that enable the mobile barcode ecosystem worldwide. Its technology platform transforms mobile devices with cameras into barcode scanners, enabling a range of practical and engaging applications including consumer oriented advertising, mobile ticketing and couponing, and business-to-business commercial track and trace solutions. The company’s current customers include handset manufacturers, platform providers, brands and agencies looking to offer pioneering mobile barcode solutions to their customer base.
The company also recently unveiled its updated NeoReader barcode-scanning software applications for Apple iOS, Android, BlackBerry, Symbian and Windows Phone 7 users, which enable users to transform their devices into barcode scanners and seamlessly connect to mobile content.
As stated by the company, NeoReader bridges the gap between traditional and digital media, allowing all users with camera phones to scan both 2D and 1D code types in order to access specific web content, real-time product or service information, download content, or complete a mobile commerce transaction with one click. Users no longer need to type in long URLs, scroll through long lists of search results or navigate cumbersome mobile phone menus.
NeoMedia posted revenues of $528K for the three months ended September 2011, an increase of 56% from $338K reported in the three months ended September 2010. The Company had loss from operations of $1.3 million for the quarter, compared to loss from operations of $1.4 million in the comparable quarter of the prior year.
The Company realized a net income of $59.4 million for the latest reported period, compared with a net loss of $25.6 million in the same quarter in the previous year. The Company attributed the increase in net income to gains in the fair value of its hybrid and derivative instruments during the three months ended September 2011, compared with a loss in the previous year.
As of September 30, 2011, the Company had $250K in cash and cash equivalents, up 213% from $80K at December 31, 2010.
NEOM shares have gained 107.6% in the last five days and 165.1% in the last month. Year-to-date, the stock is down 35.3%.