ThinkEngine Networks, Inc. (OTC-BB: THNK) today reported results for the three and nine month periods ended September 30, 2008.
Revenue for the third quarter and nine months ended September 30, 2008 was $1.0 million and $4.4 million, respectively, compared to $1.8 million and $5.5 million, respectively, for the three and nine month periods ended September 30, 2007.
Net loss for the third quarter ended September 30, 2008 was $0.6 million, or $0.09 per share, compared to a net loss of $1.4 million, or $0.20 per share, in the prior year's third quarter.
Net loss for the nine months ended September 30, 2008 was $1.8 million, or $0.26 per share, compared to a net loss of $4.5 million, or $0.67 per share, for the nine months ended September 30, 2007.
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ThinkEngine Networks, Inc.
Condensed Balance Sheets (in thousands) (unaudited) | |||||||
| Sept. 30, | Dec. 31, | ||||||
| Assets | 2008 | 2007 (a) | |||||
| Cash and cash equivalents | $ 150 | $ 415 | |||||
| Accounts receivable, net | 431 | 990 | |||||
| Notes and interest receivable | 0 | 392 | |||||
| Inventory, net | 329 | 766 | |||||
| Other current assets | 138 | 102 | |||||
| Total current assets | 1,048 | 2,665 | |||||
| Fixed assets, net | 265 | 591 | |||||
| Other assets | 42 | 123 | |||||
| Total assets | $1,355 | $3,379 | |||||
| Liabilities and Stockholders’ Deficit | |||||||
| Accounts payable and accrued expenses | $ 946 | $ 1,113 | |||||
| Notes payable | 844 | 850 | |||||
| Deferred revenue | 621 | 368 | |||||
| Total current liabilities | 2,411 | 2,331 | |||||
| Non-current liabilities | 938 | 1,431 | |||||
| Stockholders’ deficit | (1,994 | ) | (383 | ) | |||
| Total liabilities and stockholders’ deficit | $1,355 | $3,379 | |||||
(a) Dec. 31, 2007 amounts are derived from the Company’s audited financial statements. | |||||||
ThinkEngine Networks, Inc. Condensed Statements of Operations (in thousands, except share data amounts) (unaudited) | ||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||
Sept. 30, | Sept. 30, | |||||||||||
| 2008 | 2007 | 2008 | 2007 | |||||||||
| Revenue | $997 | $1,799 | $4,408 | $5,526 | ||||||||
| Cost of revenues | 296 | 757 | 1,608 | 2,185 | ||||||||
| Gross margin | 701 | 1,042 | 2,800 | 3,341 | ||||||||
| Research and development | 459 | 1,259 | 1,882 | 3,887 | ||||||||
| Selling, general and administrative | 818 | 1,237 | 2,564 | 4,010 | ||||||||
| Interest expense | 49 | 68 | 172 | 226 | ||||||||
| Other income, net | (1 | ) | (24 | ) | (27 | ) | (133 | ) | ||||
| Total expenses | 1,325 | 2,540 | 4,591 | 7,990 | ||||||||
| Pretax loss | (624 | ) | (1,498 | ) | (1,791 | ) | (4,649 | ) | ||||
| Benefit from income taxes | 0 | (129 | ) | 0 | (129 | ) | ||||||
| Net loss | ($624 | ) | ($1,369 | ) | ($1,791 | ) | ($4,520 | ) | ||||
| Net loss per share – basic and diluted | ($0.09 | ) | ($0.20 | ) | ($0.26 | ) | ($0.67 | ) | ||||
| Weighted average common shares used in computing basic and diluted net loss | 6,985,064 | 6,706,384 | 6,890,179 | 6,741,353 | ||||||||
About ThinkEngine Networks
ThinkEngine Networks is a provider of TDM and IP capable conferencing bridges and media servers. The VSR1000 includes both TDM and IP interfaces as standard equipment and is capable of processing 968 simultaneous sessions in a compact 1U platform. The Company's CX Series - Exchange Network Media Servers are a cost-effective and highly scalable family of carrier-class media server platforms. ThinkEngine’s products reduce the cost of ownership while providing a migration path from TDM to VoIP. For more information about the Company, visit http://www.thinkengine.com.
Safe Harbor Statement
This news release contains forward-looking statements that involve risks, uncertainties and assumptions. All 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. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those anticipated. Such risks and uncertainties include, but are 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, 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 most recent Form 10-K, and other subsequent Securities and Exchange Commission filings. ThinkEngine Networks does not undertake any duty to update forward-looking statements.
Contacts:
John Steinkrauss, 508-597-0452
Chief
Financial Officer
jsteinkrauss@thinkengine.com
