Cognitronics Reports First Quarter Results
DANBURY, Conn., May 12 /PRNewswire-FirstCall/ -- Cognitronics(R) Corporation today reported a net loss of $.8 million, or $.13 per diluted share, for the quarter ended March 31, 2005 compared to a net loss of $1.4 million, or $.24 per diluted share, a year ago.
Sales for the first quarter were $2.7 million in 2005 and $2.3 million in 2004.
The company said that domestic revenues increased $1.3 million in first quarter 2005 from the comparable 2004 period on increased sales to several customers, including $.7 million to a worldwide systems integrator, and higher service revenues, offset in part, by lower sales of $.8 million in the UK distributorship operations.
"The telecommunications marketplace continues to make headlines in 2005 as two more of the largest telecommunications service providers announced their intentions to merge. In the absence of real growth, consolidation rules," said Brian J. Kelley, president and chief executive officer of Cognitronics. "After years of excess infrastructure build-out, these service providers, our customers, continue to maximize the capacity of their existing network infrastructure. With limited investment capital, only the most urgent, transitional and cost-effective new technologies are 'in demand'.
"For Cognitronics Corporation, such 'in demand' technologies include the Cognitronics CX4000 Media Server platform. Capable of addressing the Intelligent Peripheral needs for existing, or legacy, network applications, the CX4000 Media Server continued to achieve greater market penetration and to demonstrate improving potential in the first quarter of 2005.
"During the remainder of 2005, the Company expects additional, substantive orders for CX Media Servers from customers, the timing of which are dependent on the customers' decisions as to when to introduce new services to its subscribers.
"Cognitronics believes that we are properly positioned within the network requirements of our customers. Furthermore, we are committed to strengthening our R&D resources, so that we may be able to succeed in a very competitive telecom environment."
Cognitronics is a leading supplier of media server solutions to the telecommunications industry. The company's Cognitronics Exchange Network Media Servers (CX Series) are a cost-effective and highly scalable family of carrier class media server platforms, delivering advanced network media solutions in VoIP and ATM packet networks as well as in traditional AIN and TDM circuit switched environments. For more information, visit the company's website at http://www.cognitronics.com/.
Statements contained herein which are not historical facts are forward- looking statements. The forward-looking statements in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and are generally characterized by the use of terms such as "believe", "expect" and "may". Although the Company believes that the expectations reflected in such forward-looking statements are based upon reasonable assumptions, the Company's actual results could differ materially from those set forth in forward-looking statements.. Forward- looking statements involve a number of risks and uncertainties including, but not limited to, the continuance of reduced capital expenditures throughout the telecommunications market, variability of sales volume from quarter to quarter, product demand, market acceptance, litigation, risk of dependence on significant customers, third party suppliers and intellectual property rights, risks in product and technology development and other risk factors detailed in the company's Securities and Exchange Commission filings.
SUMMARY OF RESULTS
Ended March 31,
Net revenues $2,729,000 $2,261,000
Net loss ($755,000) ($1,351,000)
Net loss per share:
Basic ($.13) ($.24)
Diluted ($.13) ($.24)
Weighted average number of shares outstanding:
Basic 5,634,141 5,530,124
Diluted 5,634,141 5,530,124
SUMMARY OF FINANCIAL POSITION
March 31, December 31,
Cash, cash equivalents and marketable
securities $10,685,000 $8,683,000
Working capital $12,136,000 $12,697,000
Total assets $19,055,000 $18,956,000
Total stockholders' equity $14,402,000 $15,015,000
CONTACT: Harold F. Mayer, +1-203-830-3494, for Cognitronics Corporation
Web site: http://www.cognitronics.com/
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