SPDE Speedus Corp (CE)

NEW YORK, March 31 /PRNewswire-FirstCall/ -- Speedus Corp. (NASDAQ:SPDE) 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 DATASOURCE: Speedus Corp. CONTACT: Peter Hodge of Speedus Corp., 1-888-773-3669, ext. 23, or Web site: http://www.speedus.com/

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