CoSine Communications Announces Financial Results for the Year and Quarter Ended December 31, 2007
Posted on March 14, 2008
Filed Under Silicon Valley News
LOS GATOS, Calif., March 13 /PRNewswire-FirstCall/ — CoSine
Communications, Inc. (OTC: COSN.PK), today announced net income of $416,000
or $0.04 per share for the year ended December 31, 2007 as compared to net
income of $449,000 or $0.04 per share for the year ended December 31, 2006.
Net income for the quarter ended December 31, 2007 was $73,000 or $0.01 per
share as compared to net income of $595,000 or $0.06 per share for the
quarter ended December 31, 2006.
Net income for the year and quarter ended December 31, 2006 included a
$640,000 gain on liquidation of foreign subsidiaries. The gain is due to
the cumulative effect of gains and losses of converting foreign
subsidiaries financial statements into United States dollars. This gain,
which had been deferred prior to the year ended December 31, 2006, was
recognized in 2006 with the liquidation of the subsidiaries.
CoSine’s strategic plan is to redeploy its existing resources to
identify and acquire new business operations. As a part of its strategic
plan, the Company completed the sale of its intellectual property and
closed its customer service operations effective December 31, 2006.
About CoSine Communications
CoSine Communications was founded in 1998 as a global
telecommunications equipment supplier to empower service providers to
deliver a compelling portfolio of managed, network-based IP and broadband
services to consumers and business customers. CoSine ceased its customer
service operations effective December 31, 2006. CoSine’s strategic plan is
to redeploy its existing resources to identify and acquire new business
operations. CoSine’s redeployment strategy will involve the acquisition of
one or more operating businesses with existing or prospective taxable
earnings. This strategy may allow CoSine to realize future cash flow
benefits from its net operating loss carry-forwards (”NOLs”). As of this
date, no candidates have been identified, and no assurance can be given
that CoSine will find suitable candidates, and if it does, that it will be
able to utilize its existing NOLs.
Safe Harbor Warning
“Safe Harbor” Statement under the Private Securities Litigation Reform
Act of 1995: This release contains forward-looking statements, which
include, among others, statements concerning CoSine’s expected financial
performance, exploration of strategic alternatives, and business outlook,
expected performance and developments. The company uses words such as
“anticipate,” “believe,” “plan,” “expect,” “future,” “intend” and similar
expressions to identify forward-looking statements. These forward-looking
statements are subject to certain risks and uncertainties that could cause
actual results to differ materially from those reflected in the
forward-looking statements. Factors that might cause such a difference
include, but are not limited to, CoSine’s ability to identify and
effectuate desirable strategic acquisitions, the time and costs required to
explore and investigate possible transactions and other corporate actions,
management and board interest in and distraction due to exploring and
investigating strategic alternatives, the reactions, either positive or
negative, of investors, competitors, customers, employees and others to
CoSine exploring and executing possible strategic acquisitions. A detailed
discussion of these factors and other risks that affect CoSine’s business
is contained in its SEC filings, including its most recent reports on Form
10-K and Form 10-Q, particularly under the heading “Risk Factors.” Readers
are cautioned not to place undue reliance on these forward-looking
statements, which reflect management’s opinions only as of the date hereof.
CoSine undertakes no obligation to revise or publicly release the results
of any revision to these forward-looking statements.
For additional information contact:
Terry Gibson
(408) 399-6494
E-mail: Terry.Gibson@Cosinecom.com
CoSine Communications, Inc.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)
Three months Twelve months
ended ended
Dec 31, Dec 31,
2007 2006 2007 2006
Revenue:
Product $- $- $- $-
Service - 128 - 1,361
Total revenue - 128 - 1,361
Cost of revenue - 194 - 1,663
Gross profit (loss) - (66) - (302)
Operating expenses:
Research and development - - - -
Sales and marketing - - - -
General and administrative 239 410 781 1,316
Total operating expenses 239 410 781 1,316
Loss from operations (239) (476) (781) (1,618)
Interest income and expense and
other, net 295 1,019 1,180 2,015
Income before income tax benefit 56 543 399 397
Income tax benefit (17) (52) (17) (52)
Net Income $73 $595 $416 $449
Basic net income per share $0.01 $0.06 $0.04 $0.04
Diluted net income per share $0.01 $0.06 $0.04 $0.04
Shares used in computing basic net
income per share
Basic 10,091 10,091 10,091 10,091
Diluted 10,098 10,096 10,115 10,096
CoSine Communications, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
December 31, December 31,
2007 2006
ASSETS
Current assets:
Cash and cash equivalents $12,709 $5,207
Short-term investments 10,410 17,650
Accounts receivable, trade - 55
Other receivables - 68
Prepaid expenses and other current assets 109 56
Total current assets 23,228 23,036
Long-term deposits 3 -
$23,231 $23,036
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable $204 $320
Other accrued liabilities 97 239
Total current liabilities 301 559
Total liabilities 301 559
Stockholders’ equity:
Common stock 1 1
Additional paid-in capital 539,026 538,987
Accumulated other comprehensive income 15 17
Accumulated deficit (516,112) (516,528)
Total stockholders’ equity 22,930 22,477
$23,231 $23,036
SOURCE CoSine Communications, Inc.
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