SPDE Speedus Corp (CE)

Speedus Announces Fourth Quarter and Fiscal 2003 Results NEW YORK, March 30 /PRNewswire-FirstCall/ -- Speedus Corp. today announced a net loss for the twelve months ended December 31, 2003 of $10.7 million, or $0.65 per share on a fully diluted basis, compared to a net loss of $11.1 million, or $0.62 per share on a fully diluted basis, for the twelve months ended December 31, 2002. The loss before depreciation and amortization was $9.5 million for the twelve months ended December 31, 2003 compared to a loss before depreciation and amortization of $5.8 million for the twelve months ended December 31, 2002. The results for these periods were primarily driven by decreases in investment income and depreciation and amortization in 2003 compared to 2002. For 2003, investment income amounted to a loss of $4.5 million compared to a loss of $0.2 million in 2002. Depreciation and amortization was $1.2 million in 2003 compared to $5.3 million in 2002 with the 2002 period including a non-cash charge of $3.6 million for property and equipment taken out of service. For 2003, total operating expenses before depreciation and amortization amounted to $6.4 million compared to $6.1 million in 2002. However, net of increases aggregating $2.0 million as a result of the inclusion of F&B Gudtfood and Zargis Medical operations since the acquisition of controlling interests in May 2002 and February 2003, respectively, total operating expenses, before depreciation and amortization, decreased $1.7 million primarily as a result of the continuation of cost cutting measures and a decrease in legal expenses. About Speedus Corp. Speedus Corp. is a holding company that owns significant equity interests in diverse businesses. Additional information on Speedus Corp. and its services is available at http://www.speedus.com/ or by calling 718.567.4358. 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 2003 audited consolidated financial statements and notes thereto on Form 10-K. Operating results for the twelve months ended December 31, 2003 are not necessarily indicative of the results that may be expected for the year ending December 31, 2004. SPEEDUS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS Quarters ended December 31, Years ended December 31, 2003 2002 2003 2002 (unaudited) (unaudited) Revenues $162,679 $197,459 $710,786 $906,809 Expenses: Selling, general and administrative 1,289,007 1,412,527 4,494,589 4,639,394 Research and development 468,359 237,554 1,705,233 946,482 Depreciation and amortization 409,944 173,064 1,158,753 5,277,956 Cost of sales 58,843 48,515 222,662 515,956 Total operating expenses 2,226,153 1,871,660 7,581,237 11,379,788 Operating loss (2,063,474) (1,674,201) (6,870,451) (10,472,979) Investment income/(loss) 411,033 (3,071,279) (4,519,600) (194,280) Equity in loss of associated company 0 (151,003) (92,996) (520,822) Minority interest 286,696 18,513 778,950 80,105 Net earnings/(loss) $(1,365,745) $(4,877,970) $(10,704,097) $(11,107,976) Per share: Basic loss per common share $(0.08) $(0.29) $(0.65) $(0.62) Weighted average common shares outstanding16,216,099 16,991,886 16,498,267 17,927,000 Diluted loss per common share $(0.29) $(0.29) $(0.65) $(0.62) Weighted average common shares outstanding 16,216,099 16,991,886 16,498,267 17,927,000 SPEEDUS CORP. CONSOLIDATED BALANCE SHEETS December 31, December 31, 2003 2002 ASSETS Current assets: Cash and cash equivalents $19,419,197 $33,052,815 Marketable securities 2,086,638 879,194 Due from broker 3,713,146 11,728,880 Prepaid expenses and other 83,222 17,488 Accounts and other receivables 42,500 40,099 Total current assets 25,344,703 45,718,476 Property and equipment, net of accumulated depreciation of $2,003,862 and $2,015,662 419,868 819,714 Other intangible assets, net of accumulated amortization of $1,051,493 and $418,929 2,042,051 1,651,071 Goodwill 620,875 1,760,106 Other assets 82,563 235,208 Total assets $28,510,060 $50,184,575 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $151,258 $228,144 Accrued liabilities 1,432,426 1,734,252 Securities sold and not purchased 5,406,135 14,212,566 Total current liabilities 6,989,819 16,174,962 Minority interest 531,055 1,591,557 Commitments and Contingencies -- -- Stockholders' equity: Common stock ($.01 par value; 50,000,000 shares authorized; 21,516,088 and 21,384,838 shares issued) 215,161 213,848 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 90,442,120 90,289,432 Treasury stock (at cost; 5,257,649 and 4,418,577 shares) (5,250,552) (4,371,778) Accumulated deficit (64,417,543) (53,713,446) Stockholders' equity 20,989,186 32,418,056 Total liabilities and stockholders' equity $28,510,060 $50,184,575 DATASOURCE: Speedus Corp. CONTACT: John Kallassy of Speedus Corp., +1-718-567-4358, Web site: http://www.speedus.com/

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