SPDE Speedus Corp (CE)

NEW YORK, Aug. 14 /PRNewswire-FirstCall/ -- Speedus Corp. (NASDAQ:SPDE) today announced a net loss of $3.3 million, or $0.82 per share on a fully diluted basis, for the six months ended June 30, 2008 compared to a net loss of $1.8 million, or $0.45 per share on a fully diluted basis, for the six months ended June 30, 2007. The loss before depreciation and amortization was $3.0 million for the six months ended June 30, 2008 compared to a loss before depreciation and amortization of $1.7 million for the six months ended June 30, 2007. For the quarter ended June 30, 2008, the Company reported a net loss of $1.9 million, or $0. 48 per share on a fully diluted basis, compared to a net loss of $0.6 million, or $0.15 per share on a fully diluted basis, for the quarter ended June 30, 2007. The loss before depreciation and amortization was $1.9 million for the quarter ended June 30, 2008 compared to a loss before depreciation and amortization of $0.5 million for the quarter ended June 30, 2007. For the six months ended June 30, 2008, total operating expenses, before depreciation and amortization, amounted to $3.5 million compared to $2.8 million for the six months ended June 30, 2007. For the quarter ended June 30, 2008, total operating expenses, before depreciation and amortization, amounted to $2.2 million compared to $1.3 million for the six months ended June 30, 2007. The results for the quarter and six months ended June 30, 2008 were primarily impacted by increases in operating expenses, before depreciation and amortization, in the amount of $0.5 million in both periods as a result of the acquisition of Density Dynamics in March 2008 and decreases in investment income of $0.4 million and $0.6 million, respectively. In March 2008, the Company acquired a majority interest in the newly formed Density Dynamics. The DDC product line responds to the energy use problems generated by data center growth (the Data Center Energy Crises identified by IBM in Project Big Green (http://www-03.ibm.com/press/us/en/pressrelease/24395.wss)). The new technology platform delivers cutting edge computer memory and processing capabilities based on solid-state technology, combined with a proprietary power management system that significantly lowers power use when compared with traditional spinning drives. DDC products are currently under evaluation by several large U.S. corporations for their server networks. The technology significantly improves the performance of legacy server networks and sharply reduces power consumption in data centers and server "farms." DDC will be marketing the initial line of products as well as continuing development of the technology. DDC can be found on the web at http://www.densitydynamics.com/. In June 2008, the Company launched iMarklet as a social bookmarking site enabling members, including iPhone and iTouch users, to share web content with their friends. iMarklet can be found on the web at http://www.imarklet.com/. 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 and quarterly reports on Form 10-Q. Operating results for the three and six months ended June 30, 2008 are not necessarily indicative of the results that may be expected for the year ending December 31, 2008. SPEEDUS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three months ended Six months ended June 30, June 30, 2008 2007 2008 2007 Revenues $257,213 $213,136 $377,447 $386,455 Expenses: Selling, general and administrative 1,575,304 810,437 2,293,430 1,920,698 Research and development 606,218 380,641 1,100,430 734,261 Depreciation and amortization 29,982 53,100 323,679 105,093 Cost of sales 45,551 76,873 81,656 141,702 Total operating expenses 2,257,055 1,321,051 3,799,195 2,901,754 Operating loss (1,999,842) (1,107,915) (3,421,748) (2,515,299) Investment income 95,136 513,050 150,675 710,165 Interest expense (18,500) --- (18,500) --- Net loss $(1,923,206) $(594,865) $(3,289,573) $(1,805,134) Per share: Loss per common share - basic and diluted $(0.48) $(0.15) $(0.82) $(0.45) Weighted average common shares outstanding - basic and diluted 3,988,805 3,992,042 3,990,375 3,992,181 SPEEDUS CORP. CONSOLIDATED BALANCE SHEETS (unaudited) June 30, December 31, 2008 2007 ASSETS Current assets: Cash and cash equivalents $8,927,708 $8,845,358 United States Treasury bills --- 2,996,700 Marketable securities 141,718 92,190 Accounts receivable and other 87,650 79,623 Assets held for sale --- 342,000 Total current assets 9,157,076 12,355,871 Property and equipment, net of accumulated depreciation of $119,849 and $112,353 74,447 50,569 Other investments 800,000 800,000 Other intangible assets, net of accumulated amortization of $20,535 in 2008 563,865 --- Other assets 73,524 83,127 Total assets $10,668,912 $13,289,567 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $56,748 $46,413 Accrued liabilities 1,188,922 1,390,803 Current portion of redeemable preferred stock 363,950 --- Total current liabilities 1,609,620 1,437,216 Redeemable preferred stock ($.0001 par value; 100,000 shares authorized; 70,940 shares issued and outstanding), net of current portion 363,950 --- Total liabilities 1,973,570 1,437,216 Commitments and Contingencies Stockholders' equity: Preferred stock ($.01 par value; 20,000,000 shares authorized): Series A Junior Participating ($.01 par value; 4,000 shares authorized; no shares issued) --- --- Common stock ($.01 par value; 50,000,000 shares authorized; 5,438,006 shares issued) 54,380 54,380 Additional paid-in-capital 91,934,849 91,797,457 Treasury stock (at cost; 1,449,201 and 1,445,634 shares) (6,089,906) (6,085,078) Accumulated deficit (77,203,981) (73,914,408) Stockholders' equity 8,695,342 11,852,351 Total liabilities and stockholders' equity $10,668,912 $13,289,567 DATASOURCE: Speedus Corp. CONTACT: Peter Hodge, 1-888-773-3669, ext. 23, of Speedus Corp. Web site: http://www.speedus.com/

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