NEW YORK, March 31 /PRNewswire-FirstCall/ -- Speedus Corp. today announced a net loss of $5.5 million, or $0.34 per share on a fully diluted basis, for the twelve months ended December 31, 2005 compared to earnings of $6.0 million, or $0.36 per share on a fully diluted basis, for the twelve months ended December 31, 2004. The loss before depreciation and amortization and a goodwill impairment loss for the twelve months ended December 31, 2005 was $4.5 million compared to earnings of $7.7 million for the twelve months ended December 31, 2004.
During 2004, the Company recognized 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 2005, total operating expenses before technology settlement expenses, depreciation and amortization and goodwill impairment loss amounted to $6.0 million compared to $6.1 million in 2004. However, net of an increase in the amount of $0.1 million as a result of the opening of a second F&B Gudtfood store in the second quarter of 2004 and $0.7 million as a result of the Company's development of Wibiki, a new software-based wireless network in 2005, total operating expenses, before depreciation and amortization and technology settlement expenses, decreased $0.9 million primarily as a result of the continuation of personnel reductions and cost-saving measures.
Zargis achievements during 2005 include:
-- a study conducted to assess the impact of the Zargis Acoustic
Cardioscan(TM) (ZAC(TM)) system on referral decisions made by primary
care physicians regarding heart murmurs,
-- an evaluation of a prototype Zargis computer-aided auscultation system
by a panel of seven primary care physicians who unanimously agreed that
it would improve their referral accuracy of patients with heart
murmurs,
-- an increase in Speedus Corp.'s equity stake through further investment
in Zargis, and
-- the expansion of our portfolio of intellectual property in the field of
auscultation to include control of 5 patents and 9 patents pending.
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 year ended December 31, 2005 are not necessarily indicative of the results that may be expected for the year ending December 31, 2006.
SPEEDUS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
Quarters ended Years ended
December 31, December 31,
2005 2004 2005 2004
(unaudited) (unaudited)
Revenues $234,849 $257,394 $1,038,343 $917,237
Expenses:
Selling, general and
administrative 930,215 1,153,358 3,851,332 4,313,889
Research and
development 711,808 398,797 1,797,315 1,515,934
Depreciation and
amortization 247,834 245,680 940,683 1,116,759
Cost of sales 81,674 87,761 345,354 282,370
Technology
settlement expenses -- -- -- 2,928,583
Goodwill impairment
loss -- 620,875 -- 620,875
Total operating
expenses 1,971,531 2,506,471 6,934,684 10,778,410
Operating loss (1,736,682) (2,249,077) (5,896,341) (9,861,173)
Investment
income/(loss) (485,117) 386,860 (52,397) 419,197
Minority interest -- 31,361 159,294 508,261
Gain from technology
settlement -- -- -- 15,000,000
Earnings/(loss) before
benefit from/
(provision for)
income taxes (2,221,799) (1,830,856) (5,789,444) 6,066,285
Benefit
from/(provision for)
income taxes -- (62,000) 321,539 (62,000)
Net earnings/(loss) $(2,221,799) $(1,892,856) $(5,467,905) $6,004,285
Per share:
Basic earnings/(loss)
per common share $(0.14) $(0.12) $(0.34) $0.37
Weighted average
common shares
outstanding -
basic 16,120,076 16,218,725 16,182,208 16,245,281
Diluted
earnings/(loss) per
common share $(0.14) $(0.12) $(0.34) $0.36
Weighted average
common shares
outstanding -
diluted 16,120,076 16,218,725 16,182,208 16,799,298
SPEEDUS CORP.
CONSOLIDATED BALANCE SHEETS
December 31,
2005 2004
ASSETS
Current assets:
Cash and cash equivalents $18,563,088 $17,740,865
United States Treasury bills -- 5,977,200
Marketable securities 1,174,825 1,060,592
Prepaid expenses and other 181,508 173,979
Accounts and other receivables 500 49,134
Total current assets 19,919,921 25,001,770
Property and equipment, net of
accumulated depreciation of
$321,256 and $175,457 426,201 609,840
Other intangible assets, net of
accumulated amortization of
$2,607,133 and $1,812,249 622,911 1,417,795
Other investments 800,000 900,000
Other assets 691,444 752,869
Total assets $22,460,477 $28,682,274
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $68,692 $315,742
Accrued liabilities 1,215,859 1,357,720
Total current liabilities 1,284,551 1,673,462
Minority interest -- 159,294
Commitments and Contingencies
Stockholders' equity:
Common stock ($.01 par value;
50,000,000 shares authorized;
21,750,174 and 21,587,674
shares issued) 217,502 215,877
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 90,724,450 90,546,583
Treasury stock (at cost;
5,632,275 and 5,368,949
shares) (5,884,863) (5,499,684)
Accumulated deficit (63,881,163) (58,413,258)
Stockholders' equity 21,175,926 26,849,518
Total liabilities and
stockholders' equity $22,460,477 $28,682,274
