Speedus Announces First Quarter 2006 Results

NEW YORK, May 15  /PRNewswire-FirstCall/ -- Speedus Corp. (NASDAQ:SPDE) today announced a net loss of $1.3 million, or $0.08 per share on a fully diluted basis, for the quarter ended March 31, 2006 compared to a net loss of $1.0 million, or $0.06 per share on a fully diluted basis, for the quarter ended March 31, 2005. The loss before depreciation and amortization was $1.1 million for the quarter ended March 31, 2006 compared to a loss before depreciation and amortization of $0.8 million for the quarter ended March 31, 2005.

For the quarters ended March 31, 2006 and 2005, total operating expenses before depreciation and amortization amounted to $1.4 million for each period. However, this is net of an increase in the amount of $0.2 million as a result of the Company's development of Wibiki, a new software-based wireless network, and a decrease in the amount of $0.2 million primarily as a result of the continuation of personnel reductions and cost-saving measures.

On May 11, 2006, the Company filed two separate complaints against Verizon Wireless in United States District Court in the Southern District of Florida, in which it asserts Verizon is infringing two of its patents. The suits address technologies now used by Verizon to transmit television to wireless users over cellular networks and the simultaneous transmission of analog and digital signals within the same bandwidth.

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 quarter ended March 31, 2006 are not necessarily indicative of the results that may be expected for the year ending December 31, 2006.

                              SPEEDUS CORP.
                  CONSOLIDATED STATEMENTS OF OPERATIONS
                               (unaudited)

                                                Three months ended March 31,
                                                   2006              2005

      Revenues                                   $219,070          $226,779

      Expenses:
         Selling, general and
          administrative                          863,444           974,982
         Research and development                 457,362           326,632
         Depreciation and amortization            238,890           230,077
         Cost of sales                             65,974            77,187
         Total operating expenses               1,625,670         1,608,878

      Operating loss                           (1,406,600)       (1,382,099)

      Investment income                           113,906           281,865
      Minority interest                               ---           125,079

      Net loss                                $(1,292,694)        $(975,155)


      Per share:
      Basic loss per common share                  $(0.08)           $(0.06)
      Weighted average common shares
       outstanding - basic                     16,107,989        16,218,725

      Diluted loss per common share                $(0.08)           $(0.06)
      Weighted average common shares
       outstanding - diluted                   16,107,989        16,218,725



                              SPEEDUS CORP.
                       CONSOLIDATED BALANCE SHEETS
                               (unaudited)

                                               March 31,       December 31,
                                                 2006              2005

                     ASSETS
      Current assets:
         Cash and cash equivalents           $12,538,057       $18,563,088
         United States Treasury bills          4,989,300               ---
         Marketable securities                   789,897         1,174,825
         Prepaid expenses and other              161,672           181,508
         Accounts and other receivables              ---               500
         Total current assets                 18,478,926        19,919,921
      Property and equipment, net of
       accumulated depreciation of
       $374,602 and $321,256                     661,970           426,201
      Other intangible assets, net of
       accumulated amortization of
       $2,792,677 and $2,607,133                 437,367           622,911
      Other investments                          800,000           800,000
      Other assets                               678,209           691,444
         Total assets                        $21,056,472       $22,460,477


         LIABILITIES AND STOCKHOLDERS'
          EQUITY
      Current liabilities:
         Accounts payable                        $25,443           $68,692
         Accrued liabilities                   1,083,115         1,215,859
         Total current liabilities             1,108,558         1,284,551

      Minority interest                              ---               ---

      Commitments and Contingencies

      Stockholders' equity:
         Common stock ($.01 par value;
          50,000,000 shares authorized;
          21,750,174 shares issued)              217,502           217,502
         Preferred stock ($.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           90,822,293        90,724,450
         Treasury stock (at cost;
          5,656,469 and 5,632,275
          shares)                             (5,918,024)       (5,884,863)
         Accumulated deficit                 (65,173,857)      (63,881,163)
         Stockholders' equity                 19,947,914        21,175,926
         Total liabilities and
          stockholders' equity               $21,056,472       $22,460,477


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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