SPDE Speedus Corp (CE)

NEW YORK, Nov. 14 /PRNewswire-FirstCall/ -- Speedus Corp. (NASDAQ:SPDE) today announced a net loss of $3.0 million, or $0.19 per share on a fully diluted basis, for the nine months ended September 30, 2007 compared to a net loss of $4.5 million, or $0.28 per share on a fully diluted basis, for the nine months ended September 30, 2006. The loss before depreciation and amortization was $2.9 million for the nine months ended September 30, 2007 compared to a loss before depreciation and amortization of $3.9 million for the nine months ended September 30, 2006. For the quarter ended September 30, 2007, the Company reported a net loss of $1.2 million, or $0.08 per share on a fully diluted basis, compared to a net loss of $1.0 million, or $0.06 per share on a fully diluted basis, for the quarter ended September 30, 2006. The loss before depreciation and amortization was $1.2 million for the quarter ended September 30, 2007 compared to a loss before depreciation and amortization of $0.8 million for the quarter ended September 30, 2006. For the nine months ended September 30, 2007, total operating expenses, before depreciation and amortization, amounted to $4.3 million compared to $4.8 million for the nine months ended September 30, 2006. This decrease is primarily a result of a decrease in non-cash stock based compensation. In October 2007, Zargis Medical and the 3M Company entered into an exclusive multi-year marketing agreement involving Zargis' heart sound analysis software and 3M Littmann's next-generation electronic stethoscope. Under the agreement, Zargis will support 3M in its efforts to develop a next-generation stethoscope that will be compatible with Zargis' heart sound analysis software. In addition, the alliance provides Zargis with a wide-range of marketing and promotional opportunities along with exclusive rights to sell its ground-breaking heart sound analysis software through the global distribution network of the Littmann brand. The agreement grants 3M a minority equity position in Zargis, following the first sale of Zargis' software through the 3M distribution channel, and a seat on Zargis' board of directors. About Speedus Corp. Additional information on Speedus Corp. 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 2006 audited consolidated financial statements and notes thereto on Form 10-K and quarterly reports on Form 10-Q. Operating results for the three and nine months ended September 30, 2007 are not necessarily indicative of the results that may be expected for the year ending December 31, 2007. SPEEDUS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three months ended Nine months ended September 30, September 30, 2007 2006 2007 2006 Revenues $191,473 $210,179 $577,928 $638,318 Expenses: Selling, general and administrative 885,302 699,044 2,806,000 3,161,916 Research and development 524,296 482,199 1,258,557 1,384,346 Depreciation and amortization 51,340 174,272 156,433 617,665 Cost of sales 89,912 70,969 231,614 230,215 Total operating expenses 1,550,850 1,426,484 4,452,604 5,394,142 Operating loss (1,359,377) (1,216,305) (3,874,676) (4,755,824) Investment income/ (loss) 152,674 232,460 862,839 268,109 Net loss $(1,206,703) $(983,845) $(3,011,837) $(4,487,715) Per share: Loss per common share - basic and diluted $(0.08) $(0.06) $(0.19) $(0.28) Weighted average common shares outstanding - basic and diluted 15,967,640 16,024,108 15,968,359 16,063,362 SPEEDUS CORP. CONSOLIDATED BALANCE SHEETS (unaudited) September 30, December 31, 2007 2006 ASSETS Current assets: Cash and cash equivalents $4,851,678 $10,204,167 United States Treasury bills 5,975,190 4,990,250 Marketable securities 2,139,548 354,011 Prepaid expenses and other 123,211 143,654 Total current assets 13,089,627 15,692,082 Property and equipment, net of accumulated depreciation of $567,289 and $444,972 439,190 527,828 Other intangible assets, net of accumulated amortization of $1,125,928 in 2006 --- 34,116 Other investments 800,000 800,000 Other assets 83,127 81,737 Total assets $14,411,944 $17,135,763 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $61,191 $62,805 Accrued liabilities 1,156,759 971,055 Total current liabilities 1,217,950 1,033,860 Commitments and Contingencies Stockholders' equity: Common stock ($.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 91,569,765 91,464,119 Treasury stock (at cost; 5,782,534 and 5,780,884 shares) (6,085,078) (6,083,360) Accumulated deficit (72,508,195) (69,496,358) Stockholders' equity 13,193,994 16,101,903 Total liabilities and stockholders' equity $14,411,944 $17,135,763 DATASOURCE: Speedus Corp. CONTACT: Peter Hodge at 888-773-3669 ext. 23, or Web site: http://www.speedus.com/

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