CoSine Communications, Inc. Announces Financial Results for the Year and Quarter Ended December 31, 2009
LOS GATOS, Calif., March 1 /PRNewswire-FirstCall/ -- CoSine Communications, Inc. (Pink Sheets: COSN), today announced net loss of $597,000 or $(0.06) loss per share for the year ended December 31, 2009 as compared to net loss of $15,000 or $(0.00) per share for the year ended December 31, 2008. Net loss for the quarter ended December 31, 2009 was $152,000 or $(0.02) loss per share as compared to net loss of $92,000 or $(0.01) per share for the quarter ended December 31, 2008.
CoSine also announced the expansion of its strategic plan to include investing its resources with the potential for capital gains. CoSine's expanded strategic plan is to redeploy its existing resources to identify and acquire, or invest in, one or more operating businesses with the potential for generating taxable income and/or capital gains.
About Cosine Communications
CoSine Communications was founded in 1998 as a global telecommunications equipment supplier. As of December 31, 2006, CoSine had ceased all its product and customer service related operations. CoSine's strategic plan is to redeploy its existing resources to identify and acquire, or invest in, one or more operating businesses with the potential for generating taxable income and/or capital gains. 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: |
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Terry Gibson |
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(408) 399-6494 |
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E-mail: [email protected] |
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CoSine Communications, Inc.
STATEMENTS OF OPERATIONS
(in thousands, except per share data)
Three months Twelve months
ended ended
December 31, December 31,
2009 2008 2009 2008
---- ---- ---- ----
Revenue:
Product $- $- $- $-
Service - - - -
--- --- --- ---
Total revenue - - - -
Cost of revenue - - - -
--- --- --- ---
Gross profit (loss) - - - -
Operating expenses:
General and administrative 154 215 738 721
--- --- --- ---
Total operating expenses 154 215 738 721
--- --- --- ---
Loss from operations (154) (215) (738) (721)
Interest income and other 2 123 141 706
-- --- --- ---
Loss before taxes (152) (92) (597) (15)
Income tax provision - - - -
--- --- --- ---
Net Loss $(152) $(92) $(597) $(15)
----- ---- ----- ----
Basic net loss per share $(0.02) $(0.01) $(0.06) $(0.00)
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Diluted net loss per share $(0.02) $(0.01) $(0.06) $(0.00)
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Shares used in computing basic and
diluted net loss per share
Basic 10,091 10,091 10,091 10,091
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Diluted 10,091 10,091 10,091 10,091
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CoSine Communications, Inc.
CONDENSED BALANCE SHEETS
(in thousands)
December 31,
2009 December 31,
(Unaudited) 2008 (1)
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ASSETS
Current assets:
Cash and cash equivalents $22,564 $9,155
Short-term investments - 13,997
Interest receivable 2 96
Prepaid expenses and other current
assets 28 31
-- --
Total current assets 22,594 23,279
Long-term deposits 3 3
-- --
$22,597 $23,282
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LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
Accounts payable $172 $207
Other accrued liabilities 60 53
-- --
Total current liabilities 232 260
Stockholders' equity:
Common stock 1 1
Additional paid-in capital 539,088 539,060
Accumulated other comprehensive
income - 88
Accumulated deficit (516,724) (516,127)
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Total stockholders' equity 22,365 23,022
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$22,597 $23,282
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(1) Amounts are derived from the December 31, 2008 audited financial
statements.
SOURCE CoSine Communications, Inc.
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