FREEHOLD, N.J., Nov. 14 /PRNewswire-FirstCall/ -- Speedus Corp.
(NASDAQ: SPDE) today announced a net loss of $5.6 million, or $1.39
per share on a fully diluted basis, for the nine months ended
September 30, 2008 compared to a net loss of $3.0 million, or $0.75
per share on a fully diluted basis, for the nine months ended
September 30, 2007. The loss before depreciation and amortization
was $5.2 million for the nine months ended September 30, 2008
compared to a loss before depreciation and amortization of $2.9
million for the nine months ended September 30, 2007. For the
quarter ended September 30, 2008, the Company reported a net loss
of $2.3 million, or $0.57 per share on a fully diluted basis,
compared to a net loss of $1.2 million, or $0.30 per share on a
fully diluted basis, for the quarter ended September 30, 2007. The
loss before depreciation and amortization was $2.2 million for the
quarter ended September 30, 2008 compared to a loss before
depreciation and amortization of $1.2 million for the quarter ended
September 30, 2007. For the nine months ended September 30, 2008,
total operating expenses, before depreciation and amortization,
amounted to $5.7 million compared to $4.3 million for the nine
months ended September 30, 2007. For the quarter ended September
30, 2008, total operating expenses, before depreciation and
amortization, amounted to $2.2 million compared to $1.5 million for
the quarter ended September 30, 2007. The results for the nine
months and quarter ended September 30, 2008 were primarily impacted
by increases in operating expenses, before depreciation and
amortization, in the amount of $1.4 million and $0.8 million,
respectively, as a result of the acquisition of Density Dynamics in
March 2008 and decreases in investment income in the amounts of
$0.9 million and $0.3 million, respectively. In March 2008, the
Company acquired a majority interest in the newly formed Density
Dynamics, a pioneer of Green solid RAM storage devices. The SRD
product line responds to the high performance requirements of
transaction oriented data centers and the energy use problems
identified by IBM Project Big Green
(http://www-03.ibm.com/press/us/en/pressrelease/24395.wss) The SRD
product line also addresses the performance, cost and footprint
issues facing IT globally. In October 2008, DDC released its new
SRD product line from R&D to its first production run. The
Green SRD products, built and designed in the USA, are currently
being evaluated by several large corporations worldwide. DDC can be
found on the web at http://www.densitydynamics.com/. In October
2008, Zargis Medical was awarded six additional contracts from the
U.S. Army totaling $270,000. Included in these awards is $170,000
of orders for nine upgraded versions of the telemedicine
pilot-systems which Zargis delivered to the Army earlier this year.
Based on the Army's successful evaluation of the initial prototypes
in a large military hospital, they have decided to expand the scope
of the project and purchase these additional units. The upgraded
systems provide improved data collection quality and are designed
to record, synchronize and analyze heart sounds, lung sounds, ECG
signals and, in some cases, blood oxygen saturation levels from
patients being cared for by remote military treatment facilities
located throughout the Pacific Rim. The systems will be fully
integrated with an existing Army telehealth platform. Zargis can be
found on the web at http://www.zargis.com/. 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 2007 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, 2008 are not necessarily indicative of the results
that may be expected for the year ending December 31, 2008. SPEEDUS
CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) Three
months ended Nine months ended September 30, September 30,
----------- ----------- ----------- ----------- 2008 2007 2008 2007
----------- ----------- ----------- ----------- Revenues $118,445
$191,473 $495,892 $577,928 ----------- ----------- -----------
----------- Expenses: Selling, general and administrative 1,592,418
885,302 3,885,848 2,806,000 Research and development 543,792
524,296 1,644,222 1,258,557 Depreciation and amortization 30,540
51,340 354,219 156,433 Cost of sales 54,605 89,912 136,261 231,614
----------- ----------- ----------- ----------- Total operating
expenses 2,221,355 1,550,850 6,020,550 4,452,604 Operating loss
(2,102,910) (1,359,377) (5,524,658) (3,874,676) Investment
income/(loss) (149,547) 152,674 1,128 862,839 Interest expense
(14,132) --- (32,632) --- ----------- ----------- -----------
----------- Net loss $(2,266,589) $(1,206,703) $(5,556,162)
$(3,011,837) =========== =========== =========== =========== Per
share: Loss per common share - basic and diluted $(0.57) $(0.30)
$(1.39) $(0.75) =========== =========== =========== ===========
Weighted average common shares outstanding - basic and diluted
3,982,353 3,991,910 3,987,682 3,992,090 =========== ===========
=========== =========== SPEEDUS CORP. CONSOLIDATED BALANCE SHEETS
(unaudited) September 30, December 31, 2008 2007 -----------
----------- ASSETS Current assets: Cash and cash equivalents
$7,141,134 $8,845,358 United States Treasury bills --- 2,996,700
Due from broker 880,000 --- Marketable securities 12,186 92,190
Accounts receivable and other 94,704 79,623 Assets held for sale
--- 342,000 ----------- ----------- Total current assets 8,128,024
12,355,871 Property and equipment, net of accumulated depreciation
of $129,464 and $112,353 68,872 50,569 Other investments 800,000
800,000 Other intangible assets, net of accumulated amortization of
$41,460 in 2008 538,940 --- Other assets 71,504 83,127 -----------
----------- Total assets $9,607,340 $13,289,567 ===========
=========== LIABILITIES AND STOCKHOLDERS' EQUITY Current
liabilities: Accounts payable $154,701 $46,413 Accrued liabilities
1,151,504 1,390,803 Securities sold and not yet purchased 1,020,000
--- Current portion of redeemable preferred stock 371,016 ---
----------- ----------- Total current liabilities 2,697,221
1,437,216 ----------- ----------- Redeemable preferred stock
($.0001 par value; 100,000 shares authorized; 70,940 shares issued
and outstanding), net of current portion 371,016 --- -----------
----------- Total liabilities 3,068,237 1,437,216 -----------
----------- Commitments and Contingencies Stockholders' equity:
Preferred stock ($.01 par value; 20,000,000 shares authorized):
Series A Junior Participating ($.01 par value; 4,000 shares
authorized; no shares issued) --- --- Common stock ($.01 par value;
50,000,000 shares authorized; 5,438,006 shares issued) 54,380
54,380 Additional paid-in-capital 92,057,717 91,797,457 Treasury
stock (at cost; 1,462,001 and 1,445,634 shares) (6,102,424)
(6,085,078) Accumulated deficit (79,470,570) (73,914,408)
----------- ----------- Stockholders' equity 6,539,103 11,852,351
----------- ----------- Total liabilities and stockholders' equity
$9,607,340 $13,289,567 =========== =========== DATASOURCE: Speedus
Corp. CONTACT: Peter Hodge, Speedus Corp., +1-888-773-3669 (ext.
23) or Web Site: http://www.speedus.com/
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