Speedus Announces Fourth Quarter and Fiscal 2004 Results

Speedus Announces Fourth Quarter and Fiscal 2004 Results 


NEW YORK, March 31  /PRNewswire-FirstCall/ -- Speedus Corp. (NASDAQ:SPDE) today
announced earnings of $6.0 million, or $0.36 per share on a fully diluted
basis, for the twelve months ended December 31, 2004 compared to a net loss of
$10.7 million, or $0.65 per share on a fully diluted basis, for the twelve
months ended December 31, 2003. Earnings before depreciation and amortization
and a goodwill impairment loss for the twelve months ended December 31, 2004
were $7.7 million compared to a loss of $9.5 million for the twelve months
ended December 31, 2003.

During 2004, the Company recognized a gain from technology settlement in the
amount of $15 million. In connection with this settlement, the Company incurred
$2.9 million in technology settlement expenses. Investment losses decreased
from a net loss of $4.5 million during 2003 to a net gain of $0.4 million
during 2004.

For 2004, total operating expenses before technology settlement expenses,
depreciation and amortization and goodwill impairment loss amounted to $6.1
million compared to $6.4 million in 2003. However, net of an increase in the
amount of $0.4 million as a result of the opening of a second F&B Gudtfood
store in the second quarter of 2004, total operating expenses, before
depreciation and amortization and technology settlement expenses, decreased
$0.7 million primarily as a result of the continuation of personnel reductions
and cost-saving measures.

Zargis achievements during 2004 include: (1) receipt of FDA clearance for a
graphical display of the median energy level, timing, and duration of suspected
heart murmurs, (2) the Texas Heart Institute Journal will publish results of a
clinical study in Hypertrophic Cardiomyopathy (HCM), (3) signing of an
exclusive agreement with Johns Hopkins University  to expedite our product
development pipeline and accelerate any potential clinical adoption through
association with one of the world's leading medical research centers, (4)
increase of our equity stake through further investment in Zargis, (5) hiring
of a Vice President of Regulatory and Reimbursement to lead  efforts in
obtaining health insurance reimbursement coverage for the Cardioscan procedure
and (6) successful product demonstration at the American Heart Association
Scientific Sessions in New Orleans.

Speedus also recently announced that it was reviewing strategic alternatives
and actively soliciting proposals related to its portfolio of 43 domestic and
international wireless broadband patents. Speedus is exploring options that
will allow it to leverage these assets, including joint venture opportunities
and licensing arrangements. The Company has established a web site at
http://www.speedus.com/patents that contains information on the patent
portfolio.

About Speedus Corp.

Speedus Corp. is a holding company with controlling interests in Zargis Medical
Corp. and F&B Gudtfood Holdings, Inc. Speedus Corp also owns broadband
intellectual property and controls licensed wireless frequencies. 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
2004 audited consolidated financial statements and notes thereto on Form 10-K.
Operating results for the year ended December 31, 2004 are not necessarily
indicative of the results that may be expected for the year ending December 31,
2005.

                              SPEEDUS CORP.
                  CONSOLIDATED STATEMENTS OF OPERATIONS

                    Quarters ended December  31,  Years ended December 31,
                              2004         2003        2004          2003
                        (unaudited)  (unaudited)

  Revenues                $257,394     $162,679    $917,237      $710,786

  Expenses:
    Selling, general and
     administrative      1,153,358    1,289,007   4,313,889     4,494,589
    Technology settlement
     expenses                  ---          ---   2,928,583           ---
    Research and
     development           398,797      468,359   1,515,934     1,705,233
    Depreciation and
     amortization          245,680      409,944   1,116,759     1,158,753
    Goodwill
     impairment loss       620,875          ---     620,875           ---
    Cost of sales           87,761       58,843     282,370       222,662
    Total operating
     expenses            2,506,471    2,226,153  10,778,410     7,581,237

  Operating loss        (2,249,077)  (2,063,474) (9,861,173)   (6,870,451)

  Gain from technology
   settlement                  ---          ---  15,000,000           ---
  Investment income/(loss) 386,860      411,033     419,197    (4,519,600)
  Minority interest         31,361      286,696     508,261       778,950
  Equity in loss of
   associated company          ---          ---         ---       (92,996)

  Earnings/(loss)
   before provision
   for taxes            (1,830,856)  (1,365,745)  6,066,285   (10,704,097)

  Provision for taxes       62,000          ---      62,000          ---

  Net earnings/(loss)  $(1,892,856) $(1,365,745) $6,004,285  $(10,704,097)

  Per share:
  Basic loss per
   common share             $(0.12)      $(0.08)      $0.37        $(0.65)
  Weighted average
   common shares
   outstanding          16,218,725   16,216,099  16,245,281    16,498,267

  Diluted loss per
   common share             $(0.12)      $(0.08)      $0.36        $(0.65)
  Weighted average
   common shares
   outstanding          16,218,725   16,216,099  16,799,298    16,498,267


                                SPEEDUS CORP.
                         CONSOLIDATED BALANCE SHEETS

                                             December 31,       December 31,
                                                    2004               2003

                    ASSETS
      Current assets:
        Cash and cash equivalents            $17,740,865        $19,419,197
        United States Treasury bills           5,977,200                ---
        Marketable securities                  1,060,592          2,086,638
        Prepaid expenses and other               173,979             83,222
        Accounts and other receivables            49,134             42,500
        Due from broker                              ---          3,131,835

        Total current assets                  25,001,770         24,763,392

      Property and equipment, net of
       accumulated depreciation of
       $175,457 and $2,003,862                   609,840            419,868
      Other intangible assets, net of
       accumulated amortization of
       $1,812,249 and $1,051,493               1,417,795          2,042,051
      Other investments                          900,000                ---
      Other assets                               752,869            663,874
      Goodwill                                       ---            620,875
        Total assets                         $28,682,274        $28,510,060

        LIABILITIES AND STOCKHOLDERS' EQUITY
      Current liabilities:
        Accounts payable                        $315,742           $151,258
        Accrued liabilities                    1,357,720          1,432,426
        Securities sold and not
         purchased                                   ---          5,406,135
        Total current liabilities              1,673,462          6,989,819

      Minority interest                          159,294            531,055

      Commitments and Contingencies

      Stockholders' equity:
        Common stock ($.01 par value;
         50,000,000 shares authorized;
         21,587,674 and 21,516,088
         shares issued)                          215,877            215,161
        Preferred stock ($.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            90,546,583         90,442,120
        Treasury stock (at cost;
         5,368,949 and 5,257,649
         shares)                              (5,499,684)        (5,250,552)
        Accumulated deficit                  (58,413,258)       (64,417,543)
        Stockholders' equity                  26,849,518         20,989,186
        Total liabilities and
         stockholders' equity                $28,682,274        $28,510,060


DATASOURCE: Speedus Corp.



CONTACT:  Peter Hodge of Speedus Corp., [phone], ext. 23, or

 



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

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