SPDE Speedus Corp (CE)

NEW YORK, March 31 /PRNewswire-FirstCall/ -- Speedus Corp. (NASDAQ:SPDE) today announced a net loss of $4.4 million, or $1.11 per share on a fully diluted basis, for the twelve months ended December 31, 2007 compared to a net loss of $5.6 million, or $1.40 per share on a fully diluted basis, for the twelve months ended December 31, 2006. The loss before depreciation and amortization for the twelve months ended December 31, 2007 was $4.2 million compared to a loss before depreciation and amortization of $4.9 million for the twelve months ended December 31, 2006. For 2007, total operating expenses before depreciation and amortization amounted to $5.7 million compared to $6.3 million in 2006. This decrease is primarily a result of a decrease in non-cash stock based compensation. In October 2007, Zargis and the 3M Company entered into an exclusive multi-year marketing alliance 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 heart sound analysis software through the global distribution network of the Littmann brand. The agreement grants 3M a 10% minority equity position in Zargis, 5% following the first sale of Zargis' software through the 3M distribution channel and 5% in the event the agreement is renewed after an initial two year term and certain other conditions are met, 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 2007 audited consolidated financial statements and notes thereto on Form 10-K. Operating results for the year ended December 31, 2007 are not necessarily indicative of the results that may be expected for the year ending December 31, 2008. CONTACT: Peter Hodge of Speedus Corp., 888-773-3669 (ext. 23) or SPEEDUS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS Quarters ended Years ended December 31, December 31, 2007 2006 2007 2006 (unaudited) (unaudited) Revenues $155,285 $208,024 $733,213 $846,342 Expenses: Selling, general and administrative 1,022,009 1,157,638 3,828,009 4,319,554 Research and development 354,315 293,793 1,612,872 1,678,139 Depreciation and amortization 109,201 139,888 265,634 757,553 Cost of sales 65,825 76,717 297,439 306,932 Total operating expenses 1,551,350 1,668,036 6,003,954 7,062,178 Operating loss (1,396,065) (1,460,012) (5,270,741) (6,215,836) Investment income/(loss) (10,148) 332,532 852,691 600,641 Net loss $(1,406,213) $(1,127,480) $(4,418,050) $(5,615,195) Per share: Loss per common share - basic and diluted $(0.35) $(0.28) $(1.11) $(1.40) Weighted average common shares outstanding - basic and diluted 3,991,910 4,004,279 3,992,044 4,012,927 SPEEDUS CORP. CONSOLIDATED BALANCE SHEETS December 31, 2007 2006 ASSETS Current assets: Cash and cash equivalents $8,845,358 $10,204,167 United States Treasury bills 2,996,700 4,990,250 Assets held for sale 342,000 --- Marketable securities 92,190 354,011 Prepaid expenses and other 79,623 143,654 Total current assets 12,355,871 15,692,082 Property and equipment, net of accumulated depreciation of $112,353 and $444,972 50,569 527,828 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 $13,289,567 $17,135,763 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $46,413 $62,805 Accrued liabilities 1,390,803 971,055 Total current liabilities 1,437,216 1,033,860 Commitments and Contingencies Stockholders' equity: Common stock ($.01 par value; 50,000,000 shares authorized; 5,438,006 shares issued) 54,380 54,380 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 91,797,457 91,627,241 Treasury stock (at cost; 1,445,634 and 1,445,221 shares) (6,085,078) (6,083,360) Accumulated deficit (73,914,408) (69,496,358) Stockholders' equity 11,852,351 16,101,903 Total liabilities and stockholders' equity $13,289,567 $17,135,763 DATASOURCE: Speedus Corp. CONTACT: Peter Hodge of Speedus Corp., 1-888-773-3669 ext. 23, Web site: http://www.speedus.com/

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