SPDE Speedus Corp (CE)

NEW YORK, May 15 /PRNewswire-FirstCall/ -- Speedus Corp. (NASDAQ:SPDE) today announced a net loss of $1.3 million, or $0.08 per share on a fully diluted basis, for the quarter ended March 31, 2006 compared to a net loss of $1.0 million, or $0.06 per share on a fully diluted basis, for the quarter ended March 31, 2005. The loss before depreciation and amortization was $1.1 million for the quarter ended March 31, 2006 compared to a loss before depreciation and amortization of $0.8 million for the quarter ended March 31, 2005. For the quarters ended March 31, 2006 and 2005, total operating expenses before depreciation and amortization amounted to $1.4 million for each period. However, this is net of an increase in the amount of $0.2 million as a result of the Company's development of Wibiki, a new software-based wireless network, and a decrease in the amount of $0.2 million primarily as a result of the continuation of personnel reductions and cost-saving measures. On May 11, 2006, the Company filed two separate complaints against Verizon Wireless in United States District Court in the Southern District of Florida, in which it asserts Verizon is infringing two of its patents. The suits address technologies now used by Verizon to transmit television to wireless users over cellular networks and the simultaneous transmission of analog and digital signals within the same bandwidth. About Speedus Corp. Speedus is a pioneer in wireless broadband, owning both wireless spectrum and a portfolio of broadband IP. Speedus also holds controlling interests in Zargis Medical Corp. and F&B Gudtfood Holdings, Inc. Additional information on Speedus Corp. and its services may be obtained at http://www.speedus.com/ or by contacting Peter Hodge at 888-773-3669 (ext. 23) 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 2005 audited consolidated financial statements and notes thereto on Form 10-K. Operating results for the quarter ended March 31, 2006 are not necessarily indicative of the results that may be expected for the year ending December 31, 2006. SPEEDUS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three months ended March 31, 2006 2005 Revenues $219,070 $226,779 Expenses: Selling, general and administrative 863,444 974,982 Research and development 457,362 326,632 Depreciation and amortization 238,890 230,077 Cost of sales 65,974 77,187 Total operating expenses 1,625,670 1,608,878 Operating loss (1,406,600) (1,382,099) Investment income 113,906 281,865 Minority interest --- 125,079 Net loss $(1,292,694) $(975,155) Per share: Basic loss per common share $(0.08) $(0.06) Weighted average common shares outstanding - basic 16,107,989 16,218,725 Diluted loss per common share $(0.08) $(0.06) Weighted average common shares outstanding - diluted 16,107,989 16,218,725 SPEEDUS CORP. CONSOLIDATED BALANCE SHEETS (unaudited) March 31, December 31, 2006 2005 ASSETS Current assets: Cash and cash equivalents $12,538,057 $18,563,088 United States Treasury bills 4,989,300 --- Marketable securities 789,897 1,174,825 Prepaid expenses and other 161,672 181,508 Accounts and other receivables --- 500 Total current assets 18,478,926 19,919,921 Property and equipment, net of accumulated depreciation of $374,602 and $321,256 661,970 426,201 Other intangible assets, net of accumulated amortization of $2,792,677 and $2,607,133 437,367 622,911 Other investments 800,000 800,000 Other assets 678,209 691,444 Total assets $21,056,472 $22,460,477 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $25,443 $68,692 Accrued liabilities 1,083,115 1,215,859 Total current liabilities 1,108,558 1,284,551 Minority interest --- --- Commitments and Contingencies Stockholders' equity: Common stock ($.01 par value; 50,000,000 shares authorized; 21,750,174 shares issued) 217,502 217,502 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 90,822,293 90,724,450 Treasury stock (at cost; 5,656,469 and 5,632,275 shares) (5,918,024) (5,884,863) Accumulated deficit (65,173,857) (63,881,163) Stockholders' equity 19,947,914 21,175,926 Total liabilities and stockholders' equity $21,056,472 $22,460,477 DATASOURCE: Speedus Corp. CONTACT: Peter Hodge of Speedus Corp., 1-888-773-3669, ext. 23, or Web site: http://www.speedus.com/

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