ThinkEngine Networks Announces Q1 Results
Marlborough, Mass. - April 24, 2007 (BUSINESS WIRE) -- ThinkEngine Networks, Inc. (AMEX: THN) today reported results for its quarter ended March 31, 2007.
Revenue for the quarter ended March 31, 2007 was $2.1 million compared to $3.5 million for the three month period ended March 31, 2006. Revenue for the quarter ended March 31, 2006 included $1.9 million shipped to a customer in 2005, but not recognized as revenue until the first quarter of 2006.
Net loss for the quarter ended March 31, 2007 was $1.5 million, or ($0.23) per share, compared to a net loss of $0.7 million, or ($0.10) per share, in the prior year's first quarter.
Michael Mitchell, President and Chief Executive Officer, stated, "I am pleased with the progress we have made in diversifying our customer base and adding new customers. We added five new customers during the first quarter of 2007, and expect to continue to add new customers throughout the year. Orders for our next generation VSR1000 product have shown strong quarter-over-quarter, as well as year-over-year growth."
ThinkEngine Networks, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
Mar. 31, Dec. 31,
Assets 2007 2006 (A)
---------- ----------
Cash and cash equivalents $ 3,620 $ 2,764
Accounts receivable, net 1,201 1,354
Inventory, net 1,218 1,439
Other current assets 183 270
---------- ----------
Total current assets 6,222 5,827
Officer loans 34 444
Fixed assets, net 901 970
Other assets, net 3,355 3,405
---------- ----------
Total assets $ 10,512 $ 10,646
========== ==========
Liabilities and Stockholders' Equity
Accounts payable and accrued expenses $ 2,241 $ 2,012
Current portion of long-term debt 308 0
Deferred revenue 617 522
---------- ----------
Total current liabilities 3,166 2,534
Non-current liabilities 2,083 964
Stockholders' equity 5,263 7,148
---------- ----------
Total liabilities and stockholders' equity $ 10,512 $ 10,646
========== ==========
(A) December 31, 2006 amounts are derived from the Company's audited financial statements.
ThinkEngine Networks, Inc.
Condensed Statements of Operations
(in thousands, except share and per share amounts)
(unaudited)
Three Months Ended March 31,
2007 2006
------------- -------------
Revenue $ 2,053 $ 3,465
Cost of revenues 683 1,396
------------- -------------
Gross margin 1,370 2,069
Research and development 1,381 1,513
Selling, general and administrative 1,490 1,397
Other (income)/expense, net (6) (106)
------------- -------------
Total 2,865 2,804
------------- -------------
Operating loss (1,495) (735)
Income taxes 0 15
------------- -------------
Loss from operations (1,495) (750)
Cumulative effect of change in accounting
principle, net of tax 0 36
------------- -------------
Net loss ($1,495) ($714)
============= =============
Net income (loss) per share:
Continuing operations ($0.23) ($0.11)
============= =============
Cumulative effect of change in
accounting principle, net of tax - $ .01
============= =============
Net loss ($0.23) ($0.10)
============= =============
Weighted average common shares used in
computing net income (loss):
Basic and diluted 6,513,794 7,145,218
============= =============
About ThinkEngine Networks
ThinkEngine Networks is a leading 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 NEBS 3 certified platform has been deployed by customers to implement reservationless conferencing, prepaid calling, and IVR applications. The Company's CX Series - Exchange Network Media Servers are a cost-effective and highly scalable family of carrier-class media server platforms. They deliver advanced network media solutions in VoIP networks as well as in traditional AIN and TDM circuit switched and mixed network environments. ThinkEngine is a disruptive force in the marketplace - drastically reducing the cost of implementation while giving customers 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.
Contact:
John Steinkrauss
Chief Financial Officer
ThinkEngine Networks, Inc.
jsteinkrauss@thinkengine.net
508-597-0452