Cognitronics Reports Fourth Quarter Results
01 April 2006 - 2:53AM
PR Newswire (US)
DANBURY, Conn., March 31 /PRNewswire-FirstCall/ -- Cognitronics
Corporation (AMEX:CGN) today reported income from continuing
operations of $.2 million, or $.03 per share on a diluted basis,
for the quarter ended December 31, 2005 compared to income of $2.1
million, or $.33 per share on a diluted basis, a year ago. Revenues
from continuing operations for the fourth quarter were $4 million
in 2005 and $4.9 million in 2004. The company said that the $.9
million decrease in fourth quarter sales was attributable to a
delay in acceptance of approximately $2 million of equipment
delivered to a major telecommunications service provider in the
third quarter of 2005, offset in part by increased sales volume to
other customers. The $2 million deferred sale will be recorded as a
sale in the first quarter of 2006. "During the third quarter of
2005, the company, with Board approval, initiated a strategic plan
to focus on its core business -- media server solutions to the
telecommunications industry," said Brian J. Kelley, president and
chief executive officer of Cognitronics. "In this connection, the
company acquired ThinkEngine Networks, Inc. and divested its
European distributorship operations, Dacon Electronics Plc. during
the fourth quarter of 2005. "From a market perspective, ThinkEngine
represents diversification for Cognitronics. With ThinkEngine's
VSR1000, we now have a broader product offering which leverages our
core AIN expertise with a purpose-built, SIP-based, VoIP solution.
We have begun marketing the VSR1000 to our existing customers and,
as importantly, we are diversifying into new markets with new
channel partners. We are confident that the VSR1000's total cost of
ownership is unparalleled in the industry and will present exciting
opportunities for service providers as they continue to build their
VoIP networks." The loss from discontinued operations in the 2005
quarter was $.3 million, or $.04 per share on a diluted basis,
versus $.3 million, or $.06 per share on a diluted basis, in the
2004 quarter. The net loss for the three months ended December 31,
2005 was $46,000, or $.01 per share on a diluted basis, compared to
net income of $1.8 million, or $.28 per share on a diluted basis in
the comparable 2004 quarter. For the year ended December 31, (a)
the loss from continuing operations was $2.6 million, or $.44 per
share on a diluted basis, on revenues of 6.7 million in 2005
compared to $.3 million, or $.06 per share on a diluted basis, in
2004; (b) the loss from discontinued operations was $1.6 million,
or $.26 per share on a diluted basis, in 2005 versus $.2 million,
or $.04 per share on a diluted basis, in 2004; and (c) the net loss
was $4.1 million, or $.71 per share on a diluted basis, in 2005 and
$.6 million, or $.10 per share on a diluted basis, in 2004.
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 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. 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. COGNITRONICS CORPORATION SUMMARY OF
RESULTS Three Months Ended December 31, 2005 2004 Net revenues
$3,989,000 $4,929,000 Income from continuing operations $213,000
$2,105,000 Income from discontinued operations ($259,000)
($336,000) Net (income) loss ($46,000) $1,769,000 Income (loss) per
basic and diluted share: Continuing operations $.03 $.33
Discontinued operations ($.04) ($.06) Net income (loss) ($.01) $.28
Weighted average number of shares outstanding: Basic 6,393,081
5,645,341 Diluted 7,024,494 6,362,235 Year Ended Ended December 31,
2005 2004 Net sales $6,666,000 $8,006,000 Loss from continuing
operations ($2,591000) ($341,000) Loss from discontinued operations
($1,555,000) ($213,000) Net loss ($4,146,000) ($554,000) Income
(loss) per basic and diluted share: Continuing operations ($.44)
($.06) Discontinued operations ($.26) ($.04) Net loss ($.71) ($.10)
Weighted average number of basic and diluted shares outstanding
5878928 5780603 SUMMARY OF FINANCIAL POSITION December 31, December
31, 2005 2004 Cash, cash equivalents and marketable securities
$8,120,000 $8,069,000 Working capital $7,251,000 $13,132,000 Total
assets $21,205,000 $18,956,000 Total stockholders' equity
$14,015,000 $15,015,000 DATASOURCE: Cognitronics Corporation
CONTACT: Hal Mayer of Cognitronics Corporation, +1-203-830-3494 Web
site: http://www.cognitronics.com/
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