Speedus (CE) (USOTC:SPDE)
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Speedus Announces Third Quarter 2003 Results
NEW YORK, Nov. 14 /PRNewswire-FirstCall/ -- Speedus Corp. today announced a
loss before depreciation and amortization of $8.6 million for the nine months
ended September 30, 2003 compared to a loss before depreciation and amortization
of $1.1 million for the nine months ended September 30, 2002. The net loss for
the nine months ended September 30, 2003 was $9.3 million, or $0.56 per share on
a fully diluted basis, compared to a loss of $6.2 million, or $0.34 per share on
a fully diluted basis, for the nine months ended September 30, 2002.
For the quarter ended September 30, 2003, the Company reported a loss before
depreciation and amortization of $1.7 million compared to a gain of $0.4 million
before depreciation and amortization for the quarter ended September 30, 2002.
The net loss for the quarter ended September 30, 2003 was $2.0 million, or $0.12
per share on a fully diluted basis, compared to a gain of $0.3 million, or $0.01
per share on a fully diluted basis, for the quarter ended September 30, 2002.
The results for these periods were primarily driven by decreases in investment
income, net of a decrease in depreciation and amortization for the nine month
periods. For the nine months ended September 30, 2003, investment income
amounted to a loss of $4.9 million compared to a gain of $2.9 million for the
nine months ended September 30, 2002. The nine month 2002 period included a
non-cash charge of $3.6 million for property and equipment taken out of service.
For the three months ended September 30, 2003, investment income amounted to a
loss of $0.4 million compared to a gain of $1.9 million for the three months
ended September 30, 2002.
For the nine months ended September 30, 2003, total operating expenses, before
depreciation and amortization, amounted to $4.6 million compared to $4.4 million
for the nine months ended September 30, 2002. However, net of increases
aggregating $1.3 million as a result of the inclusion of F&B Gudtfood and Zargis
Medical operations since the dates of acquisition in May 2002 and February 2003,
respectively, total operating expenses, before depreciation and amortization,
decreased $1.1 million primarily as a result of the continuation of cost cutting
measures and a decrease in legal expenses.
During 2003 to date, the Company continued to invest in Zargis Medical. The
Company made additional investments of $1.25 million and $2 million in February
and July 2003, respectively, achieving a controlling interest in Zargis Medical
in February. In May 2003, Zargis Medical submitted a PreMarket Notification,
510(k), application to the Food and Drug Administration, for clearance to market
its Zargis Acoustic CardioScan (ZAC) System in the United States. Zargis was
awarded a core patent by the United States Patent and Trademark Office in June
2003 for the technology utilized by the ZAC System. Zargis has applied for 6
additional U.S. patents. Zargis hopes to receive FDA clearance of the ZACS
System by the end of 2003. If Zargis obtains required FDA approval by December
1, 2003 to begin marketing its medical device, the Company has agreed to invest
an additional $2 million in Zargis.
Additional information on Speedus Corp. and its services is available at
http://www.speedus.com/ or by calling 718.567.4300.
For additional information on Zargis Medical, please visit their website at
http://www.zargis.com/.
For additional information on F&B Gudtfood, please visit their website at
http://www.gudtfood.com/.
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 2002
audited consolidated financial statements and notes thereto on Form 10-K and
quarterly reports on Form 10-Q. Operating results for the quarter and nine
months ended September 30, 2003 are not necessarily indicative of the results
that may be expected for the year ending December 31, 2003.
SPEEDUS CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
2003 2002 2003 2002
Revenues $174,033 $149,176 $548,107 $709,350
Expenses:
Selling, general and
administrative 1,130,195 1,183,623 3,205,582 3,226,867
Research and
development 479,207 225,744 1,236,874 708,928
Depreciation and
amortization 273,196 180,363 748,809 5,104,892
Cost of sales 36,038 49,080 163,819 467,441
Total operating
expenses 1,918,636 1,638,810 5,355,084 9,508,128
Operating loss (1,744,603) (1,489,634) (4,806,977) (8,798,778)
Investment
income/(loss) (432,452) 1,857,127 (4,930,633) 2,876,999
Equity in loss of
associated company 0 (151,970) (92,996) (369,819)
Minority interest 186,323 38,808 492,254 61,592
Net earnings/(loss) $(1,990,732) $254,331 $(9,338,352) $(6,230,006)
Per share:
Basic earnings/(loss)
per common share $(0.12) $0.01 $(0.56) $(0.34)
Weighted average common
shares outstanding 16,280,506 17,752,106 16,593,356 18,242,130
Diluted earnings/(loss)
per common share $(0.12) $0.01 $(0.56) $(0.34)
Weighted average common
shares outstanding 16,280,506 17,850,506 16,593,356 18,242,130
SPEEDUS CORP.
CONSOLIDATED BALANCE SHEETS
September 30, December 31,
2003 2002
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $23,097,199 $33,052,815
Marketable securities 7,940 879,194
Due from broker 8,113,073 11,728,880
Accounts and other receivables 42,500 40,099
Prepaid expenses and other 54,318 17,488
Total current assets 31,315,030 45,718,476
Property and equipment, net of
accumulated depreciation of
$1,983,818 and $2,015,662 565,204 819,714
Other intangible assets, net of
accumulated amortization of $852,171
and $418,929 2,241,373 1,651,071
Goodwill 890,356 1,760,106
Other assets 221,584 235,208
Total assets $35,233,547 $50,184,575
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $130,088 $228,144
Accrued liabilities 1,544,434 1,734,252
Securities sold and not purchased 10,180,451 14,212,566
Total current liabilities 11,854,973 16,174,962
Minority interest 1,087,232 1,591,557
Commitments and Contingencies --- ---
Stockholders' equity:
Common stock ($.01 par value; 50,000,000
shares authorized; 21,472,338
and 21,384,838
shares issued) 214,723 213,848
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 90,376,057 90,289,432
Treasury stock (at cost;
5,255,449 and 4,418,577 shares) (5,247,640) (4,371,778)
Accumulated deficit (63,051,798) (53,713,446)
Stockholders' equity 22,291,342 32,418,056
Total liabilities and
stockholders' equity $35,233,547 $50,184,575
DATASOURCE: Speedus Corp.
CONTACT: Thomas M. Finn of Speedus Corp., +1-718-567-4398,
Web site: http://www.speedus.com/