SPDE Speedus Corp (CE)

NEW YORK, Aug. 15 /PRNewswire-FirstCall/ -- Speedus Corp. (NASDAQ:SPDE) today announced a net loss of $2.4 million, or $0.15 per share on a fully diluted basis, for the six months ended June 30, 2005 compared to net earnings of $9.0 million, or $0.54 per share on a fully diluted basis, for the six months ended June 30, 2004. The loss before depreciation and amortization was $1.9 million for the six months ended June 30, 2005 compared to earnings before depreciation and amortization of $9.6 million for the six months ended June 30, 2004. The results for the six months ended June 30, 2004 were primarily driven by a gain from technology settlement in the amount of $15 million. In connection with this settlement, the Company incurred $2.9 million in technology settlement expenses. For the quarters ended June 30, 2005 and 2004, the Company reported a net loss of $1.4 million, or $0.09 per share on a fully diluted basis, in each period. The loss before depreciation and amortization for the quarters ended June 30, 2005 and 2004 was $1.1 million in each period. For the six months ended June 30, 2005, total operating expenses, before depreciation and amortization and technology settlement expenses, amounted to $2.8 million compared to $3.0 million for the six months ended June 30, 2004. Net of an increase in the amount of $0.1 million as a result of the opening of a second F&B Gudtfood store in the second quarter of 2004, this $0.3 million decrease is primarily a result of the continuation of personnel reductions and cost-saving measures. About Speedus Corp. Speedus Corp. is a holding company with controlling interests in Zargis Medical Corp. and F&B Gudtfood Holdings, Inc. Speedus Corp also owns broadband intellectual property and controls licensed wireless frequencies. Additional information on Speedus Corp. and its services may be obtained at http://www.speedus.com/ or by contacting John Kallassy at 888-773-3669 (ext. 22) or . Statements contained herein that are not historical facts, including but not limited to statements about the Company's product, corporate identity and focus, may be forward-looking statements that are subject to a variety of risks and uncertainties. There are a number of important factors that could cause actual results to differ materially from those expressed in any forward-looking statements made by the Company, including, but not limited to, the continuing development of the Company's sales, marketing and support efforts. These financial statements do not include all information and notes required by generally accepted accounting principles for complete financial statements. These financial statements should be read in conjunction with the Company's 2004 audited consolidated financial statements and notes thereto on Form 10-K and quarterly reports on Form 10-Q. Operating results for the three and six months ended June 30, 2005 are not necessarily indicative of the results that may be expected for the year ending December 31, 2005. SPEEDUS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three months Six months ended June 30, ended June 30, 2005 2004 2005 2004 Revenues $282,947 $200,228 $509,726 $351,243 Expenses: Selling, general and administrative 964,939 1,169,568 1,939,921 2,162,282 Research and development 369,637 368,249 696,269 738,994 Depreciation and amortization 233,299 306,770 463,376 592,246 Cost of sales 93,674 83,567 170,861 128,511 Technology settlement expenses --- --- --- 2,928,583 Total operating expenses 1,661,549 1,928,154 3,270,427 6,550,616 Operating loss (1,378,602) (1,727,926) (2,760,701) (6,199,373) Investment income/(loss) (612) 154,941 281,253 (103,181) Minority interest (1,466) 190,841 123,613 332,212 Gain from technology settlement --- --- --- 15,000,000 Net earnings/(loss) $(1,380,680) $(1,382,144) $(2,355,835) $9,029,658 Per share: Basic earnings/(loss) per common share $(0.09) $(0.09) $(0.15) $0.55 Weighted average common shares outstanding -- basic 16,226,482 16,255,244 16,222,625 16,271,615 Diluted earnings/(loss) per common share $(0.09) $(0.09) $(0.15) $0.54 Weighted average common shares outstanding -- diluted 16,226,482 16,255,244 16,222,625 16,832,814 SPEEDUS CORP. CONSOLIDATED BALANCE SHEETS June 30, December 31, 2005 2004 (unaudited) ASSETS Current assets: Cash and cash equivalents $15,793,908 $17,740,865 United States Treasury bills 4,964,850 5,977,200 Marketable securities 1,869,688 1,060,592 Prepaid expenses and other 167,062 173,979 Due from broker 12,455 --- Accounts and other receivables 1,600 49,134 Total current assets 22,809,563 25,001,770 Property and equipment, net of accumulated depreciation of $241,391 and $175,457 557,368 609,840 Other intangible assets, net of accumulated amortization of $2,209,691 and $1,812,249 1,020,353 1,417,795 Other investments 800,000 900,000 Other assets 782,278 752,869 Total assets $25,969,562 $28,682,274 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $199,789 $315,742 Accrued liabilities 1,225,320 1,357,720 Securities sold and not purchased 35,586 --- Total current liabilities 1,460,695 1,673,462 Minority interest 35,681 159,294 Commitments and Contingencies Stockholders' equity: Common stock ($.01 par value; 50,000,000 shares authorized; 21,633,674 and 21,587,674 216,337 215,877 shares issued) Preferred stock ($.01 par value; 20,000,000 shares authorized): Series A Junior Participating ($.01 par value; 4,000 shares authorized; no shares issued and outstanding) --- --- Additional paid-in-capital 90,601,289 90,546,583 Treasury stock (at cost; 5,421,549 and 5,368,949 shares) (5,575,347) (5,499,684) Accumulated deficit (60,769,093) (58,413,258) Stockholders' equity 24,473,186 26,849,518 Total liabilities and stockholders' equity $25,969,562 $28,682,274 DATASOURCE: Speedus Corp. CONTACT: John Kallassy of Speedus Corp., 1-888-773-3669, ext. 22, Web site: http://www.speedus.com/

Copyright