ThinkEngine Networks Announces Q2, 2008 Results
Marlborough, Mass. - August 8, 2008 (BUSINESS WIRE) - ThinkEngine Networks, Inc. (OTC-BB: THNK) today reported results for the three and the six month periods ended June 30, 2008.
Revenue for the second quarter and six months ended June 30, 2008 was $1.6 million and $3.4 million, respectively, compared to $1.7 million and $3.7 million, respectively, for the three and six-month periods ended June 30, 2007.
Net loss for the second quarter ended June 30, 2008 was $0.2 million, or $0.03 per share, compared to a net loss of $1.7 million, or $0.25 per share, in the prior year's second quarter.
Net loss for the six months ended June 30, 2008 was $1.2 million, or $0.17 per share, compared to a net loss of $3.2 million, or $0.47 per share, for the six months ended June 30, 2007.
Michael G. Mitchell, President and Chief Executive Officer, stated, "the Company has dramatically reduced its spending, and with its new VSR solution for the managed audio-conferencing market, is positioned to become a much stronger competitor in the audio-conferencing market."
ThinkEngine Networks, Inc.
Condensed Balance Sheets
(in thousands)
(unaudited)
| June 30, | Dec. 31, | |
| Assets | 2008 | 2007 (A) |
| Cash and cash equivalents | $325 | $415 |
| Accounts receivable, net | 1,176 | 990 | Note and interest receivable | 0 | 392 |
| Inventory, net | 310 | 766 |
| Other current assets | 207 | 102 |
| Total current assets | 2,018 | 2,665 | Fixed assets, net | 374 | 591 |
| Other assets | 55 | 123 |
| Total assets | $2,447 | $3,379 |
| Liabilities and Stockholders' Deficit | ||
| Accounts payable and accrued expenses | $877 | $1,110 |
| Notes payable | 742 | 850 |
| Deferred revenue | 1,089 | 371 | Total current liabilities | 2,708 | 2,331 |
| Non-current liabilities | 1,162 | 1,431 |
| Stockholders' deficit | (1,423) | 383 |
| Total liabilities and stockholders’ (deficit) equity | $2,447 | $3,379 |
| (A) December 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 June 30, |
Six Months Ended June 30, |
|||
| 2008 | 2007 | 2008 | 2007 | |
| Revenue | $1,642 | $1,673 | $3,411 | $3,726 |
| Cost of revenues | 515 | 745 | 1,312 | 1,428 |
| Gross margin | 1,127 | 928 | 2,099 | 2,298 |
| Research and development | 525 | 1,247 | 1,423 | 2,629 |
| Selling, general and administrative | 712 | 1,282 | 1,746 | 2,771 |
| Interest expense | 65 | 94 | 123 | 158 |
| Other income, net | (1) | (39) | (26) | (109) |
| Total expenses | 1,301 | 2,584 | 3,266 | 5,449 |
| Net loss | ($174) | ($1,656) | ($1,167) | ($3,151) |
| Net loss per share - basic and diluted: | ||||
| ($0.03) | ($0.25) | ($1.17) | ($0.47) | |
| Weighted average common shares used in computing basic and diluted net loss: | ||||
| 6,855,236 | 6,714,980 | 6,842,736 | 6,758,837 | |
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. 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. 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