SPDE Speedus Corp (CE)

Speedus Announces First Quarter 2005 Results NEW YORK, May 16 /PRNewswire/ -- Speedus Corp. (NASDAQ:SPDE) today announced a net loss of $1.0 million, or $0.06 per share on a fully diluted basis, for the quarter ended March 31, 2005 compared to net earnings of $10.4 million, or $0.62 per share on a fully diluted basis, for the quarter ended March 31, 2004. The loss before depreciation and amortization was $0.7 million for the quarter ended March 31, 2005 compared to earnings before depreciation and amortization of $10.7 million for the quarter ended March 31, 2004. The results for the quarter ended March 31, 2004 were primarily driven by 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. For the quarters ended March 31, 2005 and 2004, total operating expenses, before depreciation and amortization and technology settlement expenses, amounted to $1.4 million for each period. However, net of an increase in the amount of $0.1 million as a result of the opening of a second F&B G�dtfood store in the second quarter of 2004, total operating expenses, before depreciation and amortization and technology settlement expenses, decreased $0.1 million primarily as a result of the continuation of personnel reductions and cost-saving measures. 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 John Kallassy at 888-773-3669 (ext. 22) 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 quarter ended March 31, 2005 are not necessarily indicative of the results that may be expected for the year ending December 31, 2005. SPEEDUS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three months ended March 31, 2005 2004 Revenues $226,779 $151,015 Expenses: Selling, general and administrative 974,982 992,714 Research and development 326,632 370,745 Depreciation and amortization 230,077 285,476 Cost of sales 77,187 44,944 Technology settlement expenses --- 2,928,583 Total operating expenses 1,608,878 4,622,462 Operating loss (1,382,099) (4,471,447) Investment income/(loss) 281,865 (258,122) Minority interest 125,079 141,371 Gain from technology settlement --- 15,000,000 Net earnings/(loss) $(975,155) $10,411,802 Per share: Basic earnings/(loss) per common share $(0.06) $0.64 Weighted average common shares outstanding - basic 16,218,725 16,287,986 Diluted earnings/(loss) per common share $(0.06) $0.62 Weighted average common shares outstanding - diluted 16,218,725 16,866,170 SPEEDUS CORP. CONSOLIDATED BALANCE SHEETS March 31, December 31, 2005 2004 (unaudited) ASSETS Current assets: Cash and cash equivalents $17,584,684 $17,740,865 United States Treasury bills 4,971,100 5,977,200 Marketable securities 1,185,072 1,060,592 Prepaid expenses and other 180,254 173,979 Accounts and other receivables 4,650 49,134 Total current assets 23,925,760 25,001,770 Property and equipment, net of accumulated depreciation of $206,812 and $175,457 584,861 609,840 Other intangible assets, net of accumulated amortization of $2,010,970 and $1,812,249 1,219,074 1,417,795 Other investments 900,000 900,000 Other assets 811,028 752,869 Total assets $27,440,723 $28,682,274 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $245,916 $315,742 Accrued liabilities 1,280,179 1,357,720 Total current liabilities 1,526,095 1,673,462 Minority interest 34,215 159,294 Stockholders' equity: Common stock ($.01 par value; 50,000,000 shares authorized; 21,587,674 and 21,516,088 215,877 215,877 shares issued) 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 90,552,633 90,546,583 Treasury stock (at cost; 5,368,949 and 5,368,949 shares) (5,499,684) (5,499,684) Accumulated deficit (59,388,413) (58,413,258) Stockholders' equity 25,880,413 26,849,518 Total liabilities and stockholders' equity $27,440,723 $28,682,274 DATASOURCE: Speedus Corp. CONTACT: John Kallassy of Speedus Corp., 1-888-773-3669, ext. 22, or Web site: http://www.speedus.com/

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