Cognitronics (AMEX:CGN)
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From Jun 2019 to Jun 2024
Cognitronics Corporation (AMEX:CGN), a leading provider
of call processing technology, today announced that it will realign
its resources to increase its focus on next generation voice services
and conferencing solutions.
"We have witnessed a continuing shift in the wireline segment of
the telecommunications market resulting in increasing emphasis on
capital investment in next generation services and build-out of the
fiber optic infrastructure," said Brian J. Kelley, president and chief
executive officer of Cognitronics. "In turn, this shift has caused a
decreasing amount of available capital investment funding for the
legacy wireline operations, impacting the demand for the company's CX
Media Servers."
Reflecting this, the Company has taken the following actions:
-- The CX Media Server group has been reorganized to reflect the
current demand level for media servers in the legacy wireline
space, including a reduction in and reassignment of personnel.
-- Reflecting the increased demand for next generation voice
services and conferencing solutions, additional resources are
being added to sales, marketing and R&D efforts supporting the
VSR 1000 product line, including personnel reassigned from the
CX Media Server group.
Further, as means to convey a more contemporary and
forward-looking company and to reflect its new focus, Cognitronics
intends to change its name to ThinkEngine Networks, Inc., subject to
stockholders' approval.
As a result of the reduction in personnel, the company will record
a charge of approximately $200,000 in the quarter ending June 30, 2006
and will generate future annual savings of approximately $1.8 million.
"With the ever-growing increase in consumer, enterprise and
government adoption of Voice-over-IP and other IP communications, we
believe that this refocus of the company's resources will be in the
best long-term interest of our stockholders," concluded Mr. Kelley.
ABOUT COGNITRONICS
Cognitronics is a leading supplier of call processing technology
to the telecommunications industry. The CX Network Media Servers (CX
Series) and VSR1000 are a cost-effective and highly scalable family of
carrier class platforms, delivering advanced network media solutions
in VoIP networks as well as in traditional AIN and TDM circuit
switched environments.
For more information, please visit the company's Web site at
www.cognitronics.com.
Statements contained herein, which are not historical facts, are
forward-looking statements. The forward-looking statements in this
release are made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking statements
involve a number of risks and uncertainties including, but not limited
to, the continuance of reduced capital expenditures throughout the
telecommunications market, variability of sales volume from quarter to
quarter, product demand, market acceptance, litigation, risk of
dependence on significant customers, third party suppliers and
intellectual property rights, risks in product and technology
development and other risk factors detailed in the company's
Securities and Exchange Commission filings.