Xten (NASDAQ:XNWK)
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Xten Networks Announces Record Third Quarter Results
SANTA CLARA, CA, March 18 /PRNewswire-FirstCall/ -- Xten Networks, Inc.
(OTCBB: XNWK), a provider of award-winning VoIP (Voice over Internet Protocol),
Video over IP, Instant Messaging (IM), and Presence SIP softphones, today
reported financial results for the third quarter ended January 31, 2005.
Total revenue for the quarter climbed to a record $928,608, compared to
$677,364 for the quarter ended October 31, 2004, an increase of 37%
quarter-over-quarter. This compared to $10,874 in the year-earlier period ended
January 31, 2004.
Net loss for the quarter was $88,827, or ($0.00) per diluted share, compared to
a net loss of $198,275, or ($0.01) per diluted share, in the previous quarter.
This compared to $102,500, or ($0.02) per diluted share, in the year-earlier
period. The diluted weighted average common shares outstanding for the three
months ended January 31, 2005 were 37,638,462 shares compared to 6,226,484
shares in the year-earlier period.
For the first nine months of fiscal 2005, total revenue climbed to $2,093,123,
compared to $345,873 (+505%) in the corresponding period in fiscal 2004. Net
loss for the first nine months of fiscal 2005 was $478,235, or ($0.01) per
diluted share, compared to a net loss of $143,961, or ($0.03) per diluted
share, in the corresponding period in fiscal 2004.
Software sales for the quarter totaled $838,163 compared to $653,618 for the
quarter ended October 31, 2004, a 28% increase quarter-over-quarter. This
compared to $6,820 in the year-earlier period ended January 31, 2004. For the
nine-month period, software sales were $1,958,432 compared to $228,281 in the
year-earlier period.
Mark Bruk, chief executive officer of Xten Networks, said, "Our record
performance in the third quarter reflects strong growth in software sales. We
significantly strengthened our customer base in the quarter with new agreements
from industry leaders such as Belkin Corporation, Yak Communications, and
others. Our latest software product, eyeBeam, continues to receive strong
acceptance in the rapidly growing global VoIP marketplace and we expect to
build on our record sales going forward."(x)
"With customers in approximately 30 countries and more than 1,000,000 IP
endpoints deployed worldwide, Xten Networks remains well positioned for
long-term growth and we expect to continue to improve our operating margins
based on growing sales."(x)
About Xten Networks, Inc.
Xten Networks is a developer of award-winning, high-quality, carrier-grade VoIP
(Voice over IP) and Video over IP SIP softphones for service providers, cable
operators, Internet telephony service providers, IP PBX manufacturers and OEMs.
Xten's SIP softphones are available either pre-configured or as a software
development kit (SDK), and provide VoIP (Voice over IP), Video over IP, IM
(Instant Messaging), and Presence functionality. eyeBeam - Xten's feature-rich
SIP Video over IP softphone with IM and Presence - recently received INTERNET
TELEPHONY(R) Magazine's "Product of the Year" Award for 2004. Through
deployments with leading service providers, Xten has more than 1,000,000 IP
endpoints deployed worldwide. For more information please visit
http://www.xten.com/.
Legal Note on Forward-Looking Statements
Statements in this news release, which are not purely historical, are
forward-looking statements, including any statements regarding beliefs, plans,
expectations or intentions regarding the future. Forward-looking statements in
this news release are marked by an asterisk ((x)) and include statements
regarding management's belief that: Xten will increase sales revenues; Xten
remains well positioned for long-term growth; and, Xten expects to continue to
improve its operating margins based on growing sales. It is important to note
that actual outcomes and Xten's actual results could differ materially from
those in such forward-looking statements. Factors that could cause actual
results to differ materially include risks and uncertainties such as Xten's
ability to remain competitive as other parties develop and release competitive
products, Xten's ability to retain the employees necessary to continue research
and development of Xten's software products, the success by Xten of the sales
of its products, the impact of competitive products on the sales of Xten's
products, the impact of technology changes on Xten's software products, the
compatibility of Xten's software products with new computer operating systems,
general economic conditions as they affect Xten's prospective customers, the
ability of Xten to control costs, operating, general administrative and other
expenses, and insufficient investor interest in Xten's securities which may
impact on Xten's ability to raise additional financing as required. Readers
should also refer to the risk disclosures outlined in Xten's quarterly reports
on Form 10-QSB, annual reports on Form 10-KSB and Xten's other disclosure
documents filed from time-to-time with the Securities and Exchange Commission.
Tables follow:
XTEN NETWORKS, INC.
INTERIM CONSOLIDATED BALANCE SHEETS
January 31, 2005 and April 30, 2004
(Stated in US Dollars)
(Unaudited)
-----------
January 31, April 30,
ASSETS 2005 2004
------ ---- ----
Current
Cash $ 1,587,150 $ 944,285
Accounts receivable 178,524 100,361
Prepaid expenses 54,663 13,671
Current assets of discontinued operations - 8,115
------------- ------------
1,820,337 1,066,432
Capital assets 259,036 64,786
Trademarks 670 335
Long-term assets of discontinued operations - 4,000
------------- ------------
$ 2,080,043 $ 1,135,553
------------- ------------
------------- ------------
LIABILITIES
-----------
Current
Accounts payable and accrued liabilities $ 288,659 $ 31,156
Advances payable 228,892 226,727
Due to a related party 72,684 125,250
Unearned revenue and deposits 149,170 -
Warranty payable 43,793 -
Liabilities of discontinued operations - 18,915
------------- ------------
783,198 402,048
------------- ------------
STOCKHOLDERS' EQUITY
--------------------
Common stock, $0.001 par value
415,384,500 shares authorized
37,638,462 shares issued
(April 30, 2004: 37,138,462) 37,638 37,138
Additional paid-in capital 1,951,395 951,895
Contributed surplus 77,967 -
Deficit (733,763) (255,528)
Accumulated other comprehensive loss (36,392) -
------------- ------------
1,296,845 733,505
------------- ------------
$ 2,080,043 $ 1,135,553
------------- ------------
------------- ------------
XTEN NETWORKS, INC.
INTERIM CONSOLIDATED STATEMENTS OF OPERATIONS
for the three and nine months ended January 31, 2005 and 2004
(Stated in US Dollars)
(Unaudited)
-----------
Three months Three months Nine months Nine months
ended ended ended ended
January 31, January 31, January 31, January 31,
2005 2004 2005 2004
---- ---- ---- ----
Revenues
Software sales $ 838,163 $ 6,820 $ 1,958,432 $ 228,281
Consulting fees 90,445 4,017 134,691 117,592
------------ ------------ ------------ ------------
928,608 10,874 2,093,123 345,873
------------ ------------ ------------ ------------
Expenses
Amortization 30,425 2,423 71,363 7,269
Bad debts (recovery) (6,140) 30,125 1,660 30,125
Computer expenses 2,792 3,634 5,079 3,634
Consulting fees 126,880 27,817 272,521 372,570
Foreign exchange loss 14,391 - 2,201 -
Gain on forgiveness
of debt (10,895) - (10,895) -
Gain on disposal of
capital assets - (17,461) - (17,461)
Licenses and permits 657 9,816 85,712 10,731
Loss on write-off
of investment - 5,000 - 5,000
Office and
miscellaneous 35,545 9,450 87,873 13,186
Professional fees 14,810 6,547 64,559 8,422
Public relations 35,616 24,940 74,570 24,940
Rent 33,726 5,047 69,657 15,140
Stock-based
compensation 25,100 - 77,967 -
Telephone and internet 24,359 - 34,963 -
Travel and promotion 46,526 6,036 198,432 16,278
Wages, commissions
and benefits 620,661 - 1,500,427 -
Warranty expense 22,982 - 43,793 -
------------ ------------ ------------ ------------
1,017,435 113,374 2,579,882 489,834
------------ ------------ ------------ ------------
Loss from continuing
operations (88,827) (102,500) (486,759) (143,961)
Income from discontinued
Operations
Gain on disposal of
subsidiary - - 8,524 -
------------ ------------ ------------ ------------
Net loss for the period (88,827) (102,500) (478,235) (143,961)
Other comprehensive
loss:
Foreign currency
adjustments (16,650) - (36,392) -
------------ ------------ ------------ ------------
Comprehensive loss $ (105,477) $ (102,536) $ (514,627) $ (143,961)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Basic and diluted
loss per share
- continuing
Operations $ (0.00) $ (0.02) $ (0.01) $ (0.03)
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Basic and diluted
income per share
- discontinued
operations $ 0.00 $ 0.00 $ 0.00 $ 0.00
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Weighted average
number of shares
outstanding 37,638,462 6,226,484 37,330,491 4,483,079
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Contacts:
Todd Fromer / Michael Cimini
(212) 896-1215 / (212) 896-1233
/
DATASOURCE: Xten Networks Inc.
CONTACT: Todd Fromer / Michael Cimini, (212) 896-1215 / (212) 896-1233,
/