ThinkEngine Networks Announces Q3, 2007 Results
Marlborough, Mass. - November 13, 2007 (BUSINESS WIRE) - ThinkEngine Networks, Inc. (AMEX: THN), today reported results for its fiscal third quarter ended September 30, 2007.
Revenues for the third quarter and nine months ended September 30, 2007 were $1.8 million and $5.5 million, respectively, compared to $1.9 million and $6.9 million, respectively, for the three and nine-month periods ended September 30, 2006. Net loss for the third quarter ended September 30, 2007 was $1.4 million, or ($0.20) 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, 2007 was $4.5 million, or ($0.67) per share, compared to a net loss of $4.7 million, or ($0.65) per share, for the nine months ended September 30, 2006.
Michael Mitchell, President and CEO, stated that "the level of orders in 2007 for the VSR1000 product has been adversely impacted by the ongoing dispute over access fees between a number of our customers and prospects, and the large long distance telephone carriers. Our 3.1 release is intended to address a segment of the audio conferencing marketplace that is not involved in access fee disputes, and is a market we have not previously served".
ThinkEngine Networks, Inc.
Condensed Consolidated Balance Sheets
(in thousands)
(unaudited)
| Sept. 30, | Dec. 31, | |
| Assets | 2007 | 2006 (A) |
| Cash and cash equivalents | $1,618 | $2,764 |
| Accounts receivable, net | 533 | 1,354 | Inventory, net | 890 | 1,439 |
| Other current assets | 111 | 270 |
| Total current assets | 3,152 | 5,827 | Loans to officers | - | 444 | Fixed assets, net | 699 | 970 |
| Other assets, net | 3,139 | 3,405 |
| Total assets | $6,990 | $10,646 |
| Liabilities and Stockholders’ Equity | ||
| Accounts payable and accrued expenses | $1,734 | $1,712 |
| Notes payable – current portion | 833 | 300 |
| Deferred service revenues | 435 | 522 | Total current liabilities | 3,002 | 2,534 |
| Non-current liabilities | 1,443 | 964 |
| Stockholders’ equity | 2,545 | 7,148 |
| Total liabilities and stockholders’ equity | $6,990 | $10,646 |
| (A) December 31, 2006 amounts are derived from audited financial statements. | ||
ThinkEngine Networks, Inc.
Condensed Statements of Operations
(in thousands, except per share amounts)
(unaudited)
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||
| 2007 | 2006 | 2007 | 2006 | |
| Revenue | $1,799 | $1,899 | $5,526 | $6,940 |
| Cost of revenues | 757 | 866 | 2,185 | 3,643 |
| Gross margin | 1,042 | 1,033 | 3,341 | 3,297 |
| Research and development | 1,259 | 1,031 | 3,887 | 4,079 |
| Selling, general and administrative | 1,237 | 1,481 | 4,010 | 4,169 |
| Interest expense | 68 | - | 226 | - |
| Other income, net | (24) | (101) | (133) | (281) |
| Total | 2,540 | 2,411 | 7,990 | 7,967 |
| Pretax loss | (1,498) | (1,378) | (4,649) | (4,670) |
| Income tax provision (benefit) | (129) | 15 | (129) | 45 |
| Loss from operations | (1,369) | (1,393) | (4,520) | (4,715) |
| Cumulative effect of change in accounting principle, net of tax | - | - | - | 36 |
| Net loss | ($1,369) | ($1,393) | ($4,520) | ($4,679) |
| Pension liability adjustment | 129 | - | 129 | - |
| Comprehensive loss | ($1,498) | ($1,393) | ($4,649) | ($4,679) |
| Net income (loss) per share: | ||||
| Loss from operations | ($0.20) | ($0.20) | ($0.67) | ($0.66) |
| Cumulative effect of change in accounting principle, net of tax | - | - | - | $0.01 |
| Net loss | ($0.20) | ($0.20) | ($0.67) | ($0.65) |
| Weighted average common shares used in computing net income (loss): | ||||
| Basic and diluted | 6,706,384 | 7,015,523 | 6,741,353 | 7,189,017 |
About ThinkEngine Networks
ThinkEngine Networks, Inc. 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. This 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.com
508-597-0452