NEW YORK, Nov. 14 /PRNewswire-FirstCall/ -- Speedus Corp.
(NASDAQ:SPDE) today announced a net loss of $4.5 million, or $0.28
per share on a fully diluted basis, for the nine months ended
September 30, 2006 compared to a net loss of $3.2 million, or $0.20
per share on a fully diluted basis, for the nine months ended
September 30, 2005. The loss before depreciation and amortization
and benefit from income taxes was $3.9 million for the nine months
ended September 30, 2006 compared to a loss before depreciation and
amortization and benefit from income taxes of $2.9 million for the
nine months ended September 30, 2005. For the quarter ended
September 30, 2006, the Company reported a net loss of $1.0
million, or $0.06 per share on a fully diluted basis, compared to a
net loss of $0.9 million, or $0.06 per share on a fully diluted
basis, for the quarter ended September 30, 2005. The loss before
depreciation and amortization and benefit from income taxes was
$0.8 million for the quarter ended September 30, 2006 compared to a
loss before depreciation and amortization and benefit from income
taxes of $1.0 million for the quarter ended September 30, 2005. For
the nine months ended September 30, 2006, total operating expenses,
before depreciation and amortization, amounted to $4.8 million
compared to $4.3 million for the nine months ended September 30,
2005. This increase is primarily a result of increases in non-cash
stock based compensation, the Company's wireless initiatives,
including Wibiki, and patent litigation. In September 2006, Zargis
Medical was selected by The Wall Street Journal as a runner-up in
the Medical Devices category for Cardioscan(R), the world's first
computer-aided stethoscope that aids physicians in identifying and
evaluating murmurs and other heart sounds that may be indicative of
cardiovascular disease. In selecting award winners, The Wall Street
Journal's panel of judges considered whether the submitted
innovations represented breakthroughs from conventional methods,
rather than just incremental improvements. In October 2006, an
abstract from a clinical study conducted by Zargis in collaboration
with The Johns Hopkins University School of Medicine was presented
at the American Academy of Pediatrics National Conference &
Exhibition in Atlanta. The study assessed the impact of the
Cardioscan system on referral decisions made by primary care
physicians regarding heart murmurs- which are potential signs of
heart disease. In the study, a group of primary care physicians
were able to reduce their rates of unnecessary referrals by an
average of 41%. This indicates Cardioscan's potential to generate a
large reduction in wasted healthcare spending. The study also
revealed a reduction in the physicians' false negative rates by an
average of 46%, suggesting that Cardioscan could increase a
physician's ability to identify those pathological heart conditions
that are difficult to detect with a standard stethoscope. Zargis
has also been awarded a $101,000 contract by the U.S. Army to
develop pilot-versions of a telemedicine system for use in
cardiology. Under the terms of the contract, Zargis will develop
prototypes of a system designed to record, synchronize and analyze
heart sounds, lung sounds and ECG signals in pediatric patients who
are being cared for by remote military treatment facilities. The
system will be fully integrated with an existing Army telehealth
platform. In May 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. In July and September 2006, these two cases
were transferred to the United States District Court for the
District of New Jersey. In June 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. In October 2006, these two
cases were consolidated. 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 nine months ended
September 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 Nine months ended September 30, September 30, 2006
2005 2006 2005 Revenues $210,179 $293,768 $638,318 $803,494
Expenses: Selling, general and administrative 699,044 981,196
3,161,916 2,921,117 Research and development 482,199 389,238
1,384,346 1,085,507 Depreciation and amortization 174,272 229,473
617,665 692,849 Cost of sales 70,969 92,819 230,215 263,680 Total
operating expenses 1,426,484 1,692,726 5,394,142 4,963,153
Operating loss (1,216,305) (1,398,958) (4,755,824) (4,159,659)
Investment income/(loss) 232,460 151,467 268,109 432,720 Minority
interest --- 35,681 --- 159,294 Earnings/(loss) before benefit from
income taxes (983,845) (1,211,810) (4,487,715) (3,567,645) Benefit
from income taxes --- 321,539 --- 321,539 Net loss $(983,845)
$(890,271) $(4,487,715) $(3,246,106) Per share: Basic/diluted loss
per common share $(0.06) $(0.06) $(0.28) $(0.20) Weighted average
common shares outstanding - basic/diluted 16,024,108 16,164,823
16,063,362 16,203,146 SPEEDUS CORP. CONSOLIDATED BALANCE SHEETS
(unaudited) September 30, December 31, 2006 2005 ASSETS Current
assets: Cash and cash equivalents $11,095,515 $18,563,088 United
States Treasury bills 4,989,300 --- Marketable securities 242,201
1,174,825 Prepaid expenses and other 183,866 182,008 Total current
assets 16,510,882 19,919,921 Property and equipment, net of
accumulated depreciation of $464,694 and $321,256 663,853 426,201
Other intangible assets, net of accumulated amortization of
$3,081,360 and $2,607,133 148,684 622,911 Other investments 800,000
800,000 Other assets 68,716 691,444 Total assets $18,192,135
$22,460,477 LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable $87,500 $68,692 Accrued liabilities
928,325 1,215,859 Total current liabilities 1,015,825 1,284,551
Minority interest --- --- Commitments and Contingencies
Stockholders' equity: Common stock ($.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 91,343,756 90,724,450 Treasury stock (at cost;
5,730,884 and 5,632,275 shares) (6,016,070) (5,884,863) Accumulated
deficit (68,368,878) (63,881,163) Stockholders' equity 17,176,310
21,175,926 Total liabilities and stockholders' equity $18,192,135
$22,460,477 DATASOURCE: Speedus Corp. CONTACT: Peter Hodge of
Speedus Corp., 1-888-773-3669 ext. 23, Web site:
http://www.speedus.com/
http://www.speedus.com/patent-infringement-litigation.php
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