SPEEDUS.COM Announces Fourth Quarter and Fiscal 2000 Results; Ends Year With Strong Cash Balance

Apr 03, 2001, 01:00 ET from SPEEDUS.COM, Inc.

    NEW YORK, April 3 /PRNewswire/ -- SPEEDUS.COM, Inc. (Nasdaq: SPDE) today
 announced a loss before giving effect to depreciation and amortization, stock
 based compensation and gain on assignment of spectrum of $3.5 million for the
 year ended December 31, 2000 compared to $5.4 million for the year ended
 December 31, 1999.  The net loss for the year ended December 31, 2000 was $9.1
 million, or $.44 per share on a fully diluted basis, compared to net earnings,
 including the gain on assignment of spectrum of $19.4 million, of $10.6
 million, or $.57 per share.
     The Company ended the 2000 year with $39.3 million in cash, marketable
 securities and brokerage accounts and total liabilities of $2.8 million.
     For the year ended December 31, 2000, total operating expenses, including
 research and development costs, amounted to $11.9 million compared to
 $8.2 million in 1999.  This increase is largely attributable to the inclusion
 of Speedia's operations in the Company's consolidated results of operations
 commencing with the third quarter of 2000 and the amortization of goodwill
 resulting from the acquisition by the Company of the remaining 55% interest in
 Speedia that the Company did not already own.  Operating expenses also
 increased as a result of additions to senior management for the Company's
 operations, research and development, portal Web development and legal
 Intellectual Property expenses.
     Information on the Company's wireless data and mobile application services
 is available at http://www.speedia.com or by calling 888-Speedia
 (888-773-3342).
     Additional information on SPEEDUS.COM, Inc. and its services is available
 at http://www.speedus.com or by calling 718-567-4300.
 
     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 2000 audited consolidated financial statements and notes thereto on
 Form 10-K.  Operating results for the year ended December 31, 2000 are not
 necessarily indicative of the results that may be expected for the year ending
 December 31, 2001.
 
                               SPEEDUS.COM, Inc.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
 
                        Quarters ended December 31,  Years ended December 31,
 
                               2000          1999         2000          1999
                            (unaudited)   (unaudited)
 
     Revenues               $27,787       $60,066     $105,395      $612,135
 
     Expenses:
     Selling, general and
      administrative      2,476,964     1,494,096    7,190,809     5,425,535
     Depreciation and
      amortization        1,671,245       721,387    4,697,823     2,778,623
     Total operating
      expenses            4,148,209     2,215,483   11,888,632     8,204,158
 
     Operating loss     (4,120,422)   (2,155,417) (11,783,237)   (7,592,023)
 
     Equity in loss of
      associated company         --     (132,322)    (569,782)     (350,722)
     Settlement of litigation    --            --    (282,500)            --
     Other income                --       204,048       99,856       623,804
     Interest and investment
      income              1,221,478       631,868    3,485,804     1,300,469
     Unrealized gains/(losses)
      on investments        228,234            --     (10,015)            --
     Interest expense
      and financing fees      (844)       (4,313)      (8,793)      (22,590)
 
     Loss before gain on
      assignment of spectrum,
      intellectual property
      settlement and provision
      for income taxes  (2,671,554)   (1,456,136)  (9,068,667)   (6,041,062)
 
     Gain on assignment
      of spectrum                --    19,442,000           --    19,442,000
     Intellectual property
      settlement                 --   (2,425,000)           --   (2,425,000)
 
     Earnings/(loss) before
      provision for income
      taxes             (2,671,554)    15,560,864  (9,068,667)    10,975,938
 
     Provision for
      income taxes               --       330,000           --       330,000
 
     Net earnings
     /(loss)           $(2,671,554)   $15,230,864 $(9,068,667)   $10,645,938
 
 
     Per share:
     Basic earnings
      (loss) per common
      share                 $(0.13)         $0.77      $(0.44)         $0.58
     Weighted average
      common shares
      outstanding        20,995,528    19,670,959   20,445,586    18,465,974
 
     Diluted earnings
      (loss) per common
      share                 $(0.13)         $0.76      $(0.44)         $0.57
     Weighted average
      common shares
      outstanding        20,995,528    20,017,133   20,445,586    18,680,082
 
 
                               SPEEDUS.COM, Inc.
                          CONSOLIDATED BALANCE SHEETS
 
                                                             December 31,
                                                         2000           1999
 
     ASSETS
 
     Current assets:
      Cash and cash equivalents                   $38,594,815    $44,613,101
      Marketable securities                            68,166             --
      Due from broker                                 624,790             --
      Prepaid expenses and other                       62,098         50,000
      Due from affiliates                              93,112         93,112
      Accounts and other receivables                   94,816          8,064
      Total current assets                         39,537,797     44,764,277
 
     Property and equipment, net of accumulated
      depreciation of $9,198,902 and $8,092,906     8,659,977     10,958,977
     Goodwill, net of accumulated
      amortization of $1,185,724 in 2000            6,048,889             --
     Other intangible assets, net of accumulated
      amortization of $173,214 in 2000              2,196,786             --
     Other assets                                   1,184,735         46,036
        Total assets                              $57,628,184    $55,769,290
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities:
      Accounts payable                               $270,202       $554,739
      Accrued liabilities                           1,532,542      1,065,236
      Securities sold and not repurchased             952,032             --
      Other current liabilities                        18,005        138,937
      Current portion of notes payable                     --        210,938
      Total current liabilities                     2,772,781      1,969,850
 
     Commitments and Contingencies                         --             --
 
     Stockholders' equity:
      Common stock ($.01 par value; 40,000,000
       shares authorized; 21,034,838 and 19,670,959
       shares issued)                                 210,348        196,710
     Preferred stock ($.01 par value; 20,000,000
      shares authorized):
     Series A Convertible ($1,000 stated value;
      10,000 shares authorized; no shares issued           --             --
      and outstanding)
     Additional paid-in-capital                    90,292,432     79,875,699
     Treasury stock (at cost; 309,800
      shares in 2000)                               (305,741)             --
     Accumulated deficit                         (35,341,636)   (26,272,969)
     Stockholders' equity                          54,855,403     53,799,440
     Total liabilities and stockholders' equity   $57,628,184    $55,769,290
 
 

SOURCE SPEEDUS.COM, Inc.
    NEW YORK, April 3 /PRNewswire/ -- SPEEDUS.COM, Inc. (Nasdaq: SPDE) today
 announced a loss before giving effect to depreciation and amortization, stock
 based compensation and gain on assignment of spectrum of $3.5 million for the
 year ended December 31, 2000 compared to $5.4 million for the year ended
 December 31, 1999.  The net loss for the year ended December 31, 2000 was $9.1
 million, or $.44 per share on a fully diluted basis, compared to net earnings,
 including the gain on assignment of spectrum of $19.4 million, of $10.6
 million, or $.57 per share.
     The Company ended the 2000 year with $39.3 million in cash, marketable
 securities and brokerage accounts and total liabilities of $2.8 million.
     For the year ended December 31, 2000, total operating expenses, including
 research and development costs, amounted to $11.9 million compared to
 $8.2 million in 1999.  This increase is largely attributable to the inclusion
 of Speedia's operations in the Company's consolidated results of operations
 commencing with the third quarter of 2000 and the amortization of goodwill
 resulting from the acquisition by the Company of the remaining 55% interest in
 Speedia that the Company did not already own.  Operating expenses also
 increased as a result of additions to senior management for the Company's
 operations, research and development, portal Web development and legal
 Intellectual Property expenses.
     Information on the Company's wireless data and mobile application services
 is available at http://www.speedia.com or by calling 888-Speedia
 (888-773-3342).
     Additional information on SPEEDUS.COM, Inc. and its services is available
 at http://www.speedus.com or by calling 718-567-4300.
 
     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 2000 audited consolidated financial statements and notes thereto on
 Form 10-K.  Operating results for the year ended December 31, 2000 are not
 necessarily indicative of the results that may be expected for the year ending
 December 31, 2001.
 
                               SPEEDUS.COM, Inc.
                     CONSOLIDATED STATEMENTS OF OPERATIONS
 
                        Quarters ended December 31,  Years ended December 31,
 
                               2000          1999         2000          1999
                            (unaudited)   (unaudited)
 
     Revenues               $27,787       $60,066     $105,395      $612,135
 
     Expenses:
     Selling, general and
      administrative      2,476,964     1,494,096    7,190,809     5,425,535
     Depreciation and
      amortization        1,671,245       721,387    4,697,823     2,778,623
     Total operating
      expenses            4,148,209     2,215,483   11,888,632     8,204,158
 
     Operating loss     (4,120,422)   (2,155,417) (11,783,237)   (7,592,023)
 
     Equity in loss of
      associated company         --     (132,322)    (569,782)     (350,722)
     Settlement of litigation    --            --    (282,500)            --
     Other income                --       204,048       99,856       623,804
     Interest and investment
      income              1,221,478       631,868    3,485,804     1,300,469
     Unrealized gains/(losses)
      on investments        228,234            --     (10,015)            --
     Interest expense
      and financing fees      (844)       (4,313)      (8,793)      (22,590)
 
     Loss before gain on
      assignment of spectrum,
      intellectual property
      settlement and provision
      for income taxes  (2,671,554)   (1,456,136)  (9,068,667)   (6,041,062)
 
     Gain on assignment
      of spectrum                --    19,442,000           --    19,442,000
     Intellectual property
      settlement                 --   (2,425,000)           --   (2,425,000)
 
     Earnings/(loss) before
      provision for income
      taxes             (2,671,554)    15,560,864  (9,068,667)    10,975,938
 
     Provision for
      income taxes               --       330,000           --       330,000
 
     Net earnings
     /(loss)           $(2,671,554)   $15,230,864 $(9,068,667)   $10,645,938
 
 
     Per share:
     Basic earnings
      (loss) per common
      share                 $(0.13)         $0.77      $(0.44)         $0.58
     Weighted average
      common shares
      outstanding        20,995,528    19,670,959   20,445,586    18,465,974
 
     Diluted earnings
      (loss) per common
      share                 $(0.13)         $0.76      $(0.44)         $0.57
     Weighted average
      common shares
      outstanding        20,995,528    20,017,133   20,445,586    18,680,082
 
 
                               SPEEDUS.COM, Inc.
                          CONSOLIDATED BALANCE SHEETS
 
                                                             December 31,
                                                         2000           1999
 
     ASSETS
 
     Current assets:
      Cash and cash equivalents                   $38,594,815    $44,613,101
      Marketable securities                            68,166             --
      Due from broker                                 624,790             --
      Prepaid expenses and other                       62,098         50,000
      Due from affiliates                              93,112         93,112
      Accounts and other receivables                   94,816          8,064
      Total current assets                         39,537,797     44,764,277
 
     Property and equipment, net of accumulated
      depreciation of $9,198,902 and $8,092,906     8,659,977     10,958,977
     Goodwill, net of accumulated
      amortization of $1,185,724 in 2000            6,048,889             --
     Other intangible assets, net of accumulated
      amortization of $173,214 in 2000              2,196,786             --
     Other assets                                   1,184,735         46,036
        Total assets                              $57,628,184    $55,769,290
 
     LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities:
      Accounts payable                               $270,202       $554,739
      Accrued liabilities                           1,532,542      1,065,236
      Securities sold and not repurchased             952,032             --
      Other current liabilities                        18,005        138,937
      Current portion of notes payable                     --        210,938
      Total current liabilities                     2,772,781      1,969,850
 
     Commitments and Contingencies                         --             --
 
     Stockholders' equity:
      Common stock ($.01 par value; 40,000,000
       shares authorized; 21,034,838 and 19,670,959
       shares issued)                                 210,348        196,710
     Preferred stock ($.01 par value; 20,000,000
      shares authorized):
     Series A Convertible ($1,000 stated value;
      10,000 shares authorized; no shares issued           --             --
      and outstanding)
     Additional paid-in-capital                    90,292,432     79,875,699
     Treasury stock (at cost; 309,800
      shares in 2000)                               (305,741)             --
     Accumulated deficit                         (35,341,636)   (26,272,969)
     Stockholders' equity                          54,855,403     53,799,440
     Total liabilities and stockholders' equity   $57,628,184    $55,769,290
 
 SOURCE  SPEEDUS.COM, Inc.