ThinkEngine Networks Announces Q1, 2008 Results
Marlborough, Mass. - May 13, 2008 (BUSINESS WIRE) - ThinkEngine Networks, Inc. (OTC-BB: THNK) today reported results for the quarter ended March 31, 2008.
Revenue for the quarter ended March 31, 2008 was $1.8 million compared to $2.1 million for the three month period ended March 31, 2007.
Net loss for the quarter ended March 31, 2008 was $1.0 million, or ($0.15) per share, compared to a net loss of $1.5 million, or ($0.23) per share, in the prior year's first quarter.
Michael Mitchell, President and Chief Executive Officer, stated, "revenue for the quarter was impacted by lower than anticipated orders as demand for the VSR1000 continues to be adversely affected by the ongoing dispute over access fees between a number of our customers and prospects, and the large long distance telephone carriers. The Company is aggressively managing its expenses, and its latest VSR1000 release is intended for the full service audio conferencing service provider which is a market in which the Company has not competed in the past."
ThinkEngine Networks, Inc.
Condensed Balance Sheets
(in thousands)
(unaudited)
| Mar. 31, | Dec. 31, | |
| Assets | 2008 | 2007 (A) |
| Cash and cash equivalents | $254 | $415 |
| Accounts receivable, net | 820 | 990 | Note and interest receivable | 0 | 392 |
| Inventory, net | 446 | 766 |
| Other current assets | 232 | 102 |
| Total current assets | 1,752 | 2,665 |
| Fixed assets, net | 482 | 591 |
| Other assets | 106 | 123 |
| Total assets | $2,340 | $3,379 |
| Liabilities and Stockholders' Deficit | ||
| Accounts payable and accrued expenses | $994 | $1,113 |
| Notes payable | 869 | 850 |
| Deferred revenue | 504 | 368 | Total current liabilities | 2,367 | 2,331 |
| Non-current liabilities | 1,222 | 1,431 |
| Stockholders' deficit | (1,249) | (383) |
| Total liabilities and stockholders’ deficit | $2,340 | $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 and per share amounts)
(unaudited)
| Three Months Ended March 31, |
||
| 2008 | 2007 | |
| Revenue | $1,769 | $2,053 |
| Cost of revenues | 797 | 683 |
| Gross margin | 972 | 1,370 |
| Research and development | 898 | 1,382 |
| Sales and marketing | 447 | 731 |
| General and administrative | 587 | 758 |
| Other (income)/expense, net | 33 | (6) |
| Total | $1,965 | $2,865 |
| Net loss | $(993) | $(1,495) |
| Net loss per share - basic and diluted: | ||
| ($0.15) | ($0.23) | |
| Weighted average common shares used in computing basic and diluted net loss: | ||
| 6,830,236 | 6,513,794 | |
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 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