SPDE Speedus Corp (CE)

NEW YORK, Aug. 14 /PRNewswire-FirstCall/ -- Speedus Corp. (NASDAQ:SPDE) today announced a net loss of $3.5 million, or $0.22 per share on a fully diluted basis, for the six months ended June 30, 2006 compared to a net loss of $2.4 million, or $0.15 per share on a fully diluted basis, for the six months ended June 30, 2005. The loss before depreciation and amortization was $3.1 million for the six months ended June 30, 2006 compared to a loss before depreciation and amortization of $1.9 million for the six months ended June 30, 2005. For the quarter ended June 30, 2006, the Company reported a net loss of $2.2 million, or $0.14 per share on a fully diluted basis, compared to a net loss of $1.4 million, or $0.09 per share on a fully diluted basis, for the quarter ended June 30, 2005. The loss before depreciation and amortization was $2.0 million for the quarter ended June 30, 2006 compared to a loss before depreciation and amortization of $1.1 million for the quarter ended June 30, 2005. For the six months ended June 30, 2006, total operating expenses, before depreciation and amortization, amounted to $3.5 million compared to $2.8 million for the six months ended June 30, 2005. This increase is primarily a result of increases in non-cash stock based compensation and the Company's increased activities in wireless initiatives, including Wibiki, and patent litigation. During the second quarter of 2006, on May 11, 2006, the Company filed two separate complaints against Cellco Partnership (d/b/a Verizon Wireless) in United States District Court for the Southern District of Florida, in which it asserts Verizon Wireless is infringing two of its patents. Verizon Wireless is a joint venture of Verizon Communications Inc. and Vodafone Group PLC. On July 27, 2006, one of these cases was transferred to the United States District Court for the District of New Jersey. On June 2, 2006, the Company also filed two separate complaints against Alltel Corp. in United States District Court for the Southern District of Florida, in which it asserts Alltel is infringing two of its patents. Copies of publicly-available filings in connection with these law suits are available on Speedus' web site at http://www.speedus.com/patent-infringement-litigation.php. About Speedus Corp. Additional information on Speedus Corp. 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 and quarterly reports on Form 10-Q. Operating results for the three and six months ended June 30, 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 Six months ended June 30, June 30, 2006 2005 2006 2005 Revenues $209,069 $282,947 $428,139 $509,726 Expenses: Selling, general and administrative 1,599,428 964,939 2,462,872 1,939,921 Research and development 444,785 369,637 902,147 696,269 Depreciation and amortization 204,503 233,299 443,393 463,376 Cost of sales 93,272 93,674 159,246 170,861 Total operating expenses 2,341,988 1,661,549 3,967,658 3,270,427 Operating loss (2,132,919) (1,378,602) (3,539,519) (2,760,701) Investment income (78,257) (612) 35,649 281,253 Minority interest --- (1,466) --- 123,613 Net loss $(2,211,176) $(1,380,680) $(3,503,870) $(2,355,835) Per share: Basic loss per common share $(0.14) $(0.09) $(0.22) $(0.15) Weighted average common shares outstanding - basic 16,067,162 16,226,482 16,083,315 16,222,625 Diluted loss per common share $(0.14) $(0.09) $(0.22) $(0.15) Weighted average common shares outstanding - diluted 16,067,162 16,226,482 16,083,315 16,222,625 SPEEDUS CORP. CONSOLIDATED BALANCE SHEETS (unaudited) June 30, December 31, 2006 2005 ASSETS Current assets: Cash and cash equivalents $11,191,603 $18,563,088 United States Treasury bills 4,989,800 --- Marketable securities 528,334 1,174,825 Prepaid expenses and other 224,285 181,508 Accounts and other receivables 2,900 500 Total current assets 16,936,922 19,919,921 Property and equipment, net of accumulated depreciation of $419,880 and $321,256 665,271 426,201 Other intangible assets, net of accumulated amortization of $2,951,900 and $2,607,133 278,144 622,911 Other investments 800,000 800,000 Other assets 663,626 691,444 Total assets $19,343,963 $22,460,477 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $86,112 $68,692 Accrued liabilities 1,095,542 1,215,859 Total current liabilities 1,181,654 1,284,551 Minority interest --- --- Commitments and Contingencies Stockholders' equity: Common stock ($.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 91,338,639 90,724,450 Treasury stock (at cost; 5,724,324 and 5,632,275 shares) (6,008,799) (5,884,863) Accumulated deficit (67,385,033) (63,881,163) Stockholders' equity 18,162,309 21,175,926 Total liabilities and stockholders' equity $19,343,963 $22,460,477 DATASOURCE: Speedus Corp. CONTACT: Peter Hodge of Speedus Corp., 1-888-773-3669 ext. 23, Web site: http://www.speedus.com/

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