Cognitronics Reports First Quarter Results

Cognitronics Reports First Quarter Results 


DANBURY, Conn., May 13  /PRNewswire-FirstCall/ -- Cognitronics Corporation 
today reported a net loss of $1.4 million, or $.24 per diluted share, for the
quarter ended March 31, 2004 compared to a net loss of $1.3 million, or $.24
per diluted share, a year ago.

Sales for the first quarter were $2.3 million in 2004 and $2.5 million in 2003.

The company said that the $.2 million decrease in first quarter 2004 sales from
the comparable 2003 period was attributable to a decrease in sales by its
domestic operations.  Domestic operations continue to be adversely impacted by
the slowdown in capital expenditures throughout the telecommunications
industry.

"Cognitronics remains committed to its strategy to deliver world-class media
server platforms to our telecommunications customers," said Brian J. Kelley,
president and chief executive officer of Cognitronics.  "Although domestic
sales continued to be weak in the first quarter of 2004, proposal activity has
increased.  In 2004, the company has entered into a reseller agreement with
Spectel, a leader in conferencing solutions; successfully completed
interoperability testing of our CX Media Server products with Telcordia
Technologies, Inc., a leading global provider of telecommunications software
and services; and Cedar Point Communications, a leading Voice over Cable system
provider; and entered into a distribution agreement with Syndeo Corporation, a
provider of VoIP systems to cable operators.  Each of these items expands the
company's market offerings in traditional circuit switched and next-generation
networks.

"Further, Cognitronics anticipates increased orders in the second quarter from
a major telecommunications service provider for our CX 4000 Media Server
products.  These orders will expand the company's presence in the network
infrastructure, particularly in the Advanced Intelligent Network (AIN) segment.
 I am confident that the company will be successful in these emerging markets
as projects are funded and implemented."

Cognitronics is a leading supplier of media server solutions to the
telecommunications industry.  The company's Cognitronics Exchange Network Media
Servers (CX Series) are a cost-effective and highly scalable family of carrier
class media server platforms, delivering advanced network media solutions in
VoIP and ATM packet networks as well as in traditional AIN and TDM circuit
switched environments.  For more information, visit the company's website at
http://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.

Cognitronics is a registered trademark of Cognitronics Corporation Telcordia is
a registered trademark of Telcordia Technologies, Inc. Cedar Point
Communications is a registered trademark of Cedar Point Communications, Inc.

                         COGNITRONICS CORPORATION
                            SUMMARY OF RESULTS

                                                          Three Months
                                                         Ended March 31,
                                                        2004          2003
  Net sales                                       $2,261,000    $2,496,000
  Net loss                                       ($1,351,000)  ($1,325,000)

  Net loss per share:
      Basic                                            ($.24)        ($.24)
      Diluted                                          ($.24)        ($.24)
  Weighted average number of shares outstanding:
      Basic                                        5,707,198     5,509,494
      Diluted                                      5,707,198     5,509,494


                      SUMMARY OF FINANCIAL POSITION

                                                    March 31,  December 31,
                                                        2004          2003
  Cash, cash equivalents and marketable
   securities                                     $8,924,000    $8,833,000
  Working capital                                $12,918,000   $14,143,000
  Total assets                                   $17,861,000   $18,898,000
  Total stockholders' equity                     $13,105,000   $14,224,000


DATASOURCE: Cognitronics Corporation



CONTACT:  Harold F. Mayer of Cognitronics Corporation, [phone]



Web site:  http://www.cognitronics.com/ 

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