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Online Backup Firm Spare Backup Reports 2Q Financials

Cliff Boodoosingh on August 23, 2011
 
MINDEN, Nev., Aug. 23, 2011 /PRNewswire via COMTEX/ -- Spare Backup, Inc. ("Spare Backup") /quotes/zigman/429190 SPBU +17.65% today announced its financial results for the second quarter of 2011.

2nd Quarter 2011 Revenue Increases by over 300% from 1st Quarter 2011 due to Web Development and Software Customization Fees as well as Test Launch Sales for New Distribution Partners

Management Sees a Significant Ramp up in Revenue as Several Distribution Partners Begin Large Scale Deployment of Data Backup and Mobile Security Offerings Across Europe and North America

For the second quarter ended June 30, 2011 we reported revenue of $156,000, more than a 300% sequential increase over the $38,000 in revenue reported in the first quarter of 2011. The increase in revenue is a result of website development, software customization and test launch sales of our data backup and mobile security software offerings with our European and North American distribution partners. The company reported a net loss of $2.0 million for the second quarter of 2011, a 41% improvement over the $3.5 million loss recorded in the second quarter of 2010 on $227,000 in revenue.

Revenue for the six month period ending June 30, 2011 was $194,000, a decrease of $584,000 when compared to the same six month period in 2010. The decrease was attributable to deferred revenue recorded in the 2010 six month period from a contract terminated by management in December of 2009 to pursue relationships with two larger European distribution partners in the mobile device and mobile warrantee space that will be launching large scale offerings in the third and fourth quarters of 2011. For the six month period ending June 30, 2011 our net loss was $2.1 million compared to $5.9 million in the comparable six month period in 2010.

Management anticipates a substantial ramp in revenue in the second half of 2011 as our distribution partners in Europe and North America begin large scale deployment of our suite of data backup and mobile security products focusing on smart phone and tablet devices. Our developers have converted our product to support the local language in the Netherlands and are in the process of converting eight additional languages for anticipated launches in Germany, Ireland, Italy, Spain, Poland, Romania, Czech Republic and Turkey. Additionally, as a result of the continued strong adoption rates for smart phones in our target markets coupled with the sharp decline in feature phone usage, management believes it is unlikely that it will consummate its proposed acquisition of Tarsin. Management will instead focus its resources on its current partnerships to support their substantial deployment efforts.

Commenting on the quarter Cery Perle, President and CEO of Spare Backup, stated, "We are pleased to begin to scratch the surface of what we believe will be a prolonged period of substantial revenue growth for Spare Backup. We have substantially reduced our expenses while we worked to develop our unique cloud based platform for an extensive array of data backup and mobile security products. Additionally, by foregoing short term gains to build cutting edge products along with an extensive distribution network in the mobile retail, internet, warrantee and insurance space, we believe we are poised to experience tremendous growth through the expected launches that our partners have scheduled over the remainder of this year and into 2012. We are also confident that our discussions with other potential partners will enable us to continue on a strong growth track for the foreseeable future. We believe that as our partners execute and we continue to build on our cloud based products we can quickly achieve positive cash flow from our operations and future profitability."

About Spare Backup, Inc.

Spare Backup, Inc. specializes in helping consumers, small office/home office users and small to mid-sized businesses protect their computer data quickly, automatically and cost-effectively. The company's flagship Spare Backup product is the first totally automated online backup service that intelligently selects, secures and stores files without any user intervention, automatically backing up documents, email, music, photos and other PC files on a continuous basis or according to the schedule of the user's choice.

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