SPDE Speedus Corp (CE)

Speedus Announces First Quarter 2004 Results NEW YORK, May 14 /PRNewswire-FirstCall/ -- Speedus Corp. today announced net earnings of $10.4 million, or $0.62 per share on a fully diluted basis, for the quarter ended March 31, 2004 compared to a net loss of $1.4 million, or $0.08 per share on a fully diluted basis, for the quarter ended March 31, 2003. Earnings before depreciation and amortization were $10.7 million for the quarter ended March 31, 2004 compared to a loss before depreciation and amortization of $1.2 million for the quarter ended March 31, 2003. The results for the quarter ended March 31, 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 quarter ended March 31, 2004, total operating expenses, before depreciation and amortization and technology settlement expenses, amounted to $1.4 million compared to $1.3 million for the quarter ended March 31, 2003. Net of increases in operating expenses aggregating $0.2 million as a result of the inclusion of Zargis Medical operations since the date of acquisition in February 2003, total operating expenses, before depreciation and amortization and technology settlement expenses, decreased $0.1 million primarily as a result of personnel reductions. 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 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 and quarterly reports on Form 10-Q. Operating results for the three months ended March 31, 2004 are not necessarily indicative of the results that may be expected for the year ending December 31, 2004. SPEEDUS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three months ended March 31, 2004 2003 Revenues $151,015 $169,807 Expenses: Selling, general and administrative 992,714 926,583 Technology settlement expenses 2,928,583 0 Research and development 370,745 334,944 Depreciation and amortization 285,476 215,368 Cost of sales 44,944 48,300 Total operating expenses 4,622,462 1,525,195 Operating loss (4,471,447) (1,355,388) Gain from technology settlement 15,000,000 0 Investment income/(loss) (258,122) (47,530) Minority interest 141,371 81,251 Equity in loss of associated company 0 (92,996) Net earnings/(loss) $10,411,802 $(1,414,663) Per share: Basic earnings/(loss) per common share $0.64 $(0.08) Weighted average common shares outstanding - basic 16,287,986 16,883,034 Diluted earnings/(loss) per common share $0.62 $(0.08) Weighted average common shares outstanding - diluted 16,866,170 16,883,034 SPEEDUS CORP. CONSOLIDATED BALANCE SHEETS March 31, December 31, 2004 2003 (unaudited) ASSETS Current assets: Cash and cash equivalents $29,825,608 $19,419,197 Marketable securities 887,077 2,086,638 Due from broker 782,200 3,713,146 Prepaid expenses and other 202,650 83,222 Accounts and other receivables 52,783 42,500 Total current assets 31,750,318 25,344,703 Property and equipment, net of accumulated depreciation of $2,101,991 and $2,003,862 500,137 419,868 Other intangible assets, net of accumulated amortization of $1,238,838 and $1,051,493 1,854,706 2,042,051 Goodwill 620,875 620,875 Other assets 83,854 82,563 Total assets $34,809,890 $28,510,060 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $131,184 $151,258 Accrued liabilities 1,041,778 1,432,426 Securities sold and not purchased 1,810,968 5,406,135 Total current liabilities 2,983,930 6,989,819 Minority interest 389,684 531,055 Commitments and Contingencies Stockholders' equity: Common stock ($.01 par value; 50,000,000 shares authorized; 21,583,656 and 21,516,088 shares issued) 215,837 215,161 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 90,520,332 90,442,120 Treasury stock (at cost; 5,273,649 and 5,257,649 shares) (5,294,152) (5,250,552) Accumulated deficit (54,005,741) (64,417,543) Stockholders' equity 31,436,276 20,989,186 Total liabilities and stockholders' equity $34,809,890 $28,510,060 DATASOURCE: Speedus Corp. CONTACT: John Kallassy of Speedus Corp., +1-718-567-4358, Web site: http://www.speedus.com/

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