EZEN .47/.50...every $706,000 helps...this story is getting better and better..over $4m in orders announced in past 10 days...biggest customer is the DOD....they really like InfoSpace....would have a core holding here......
(PR NEWSWIRE) Ezenia!(R) Inc. Announces a Settlement with the Israeli Tax Commi
sion on Disputed Tax Withholding
Ezenia!(R) Inc. Announces a Settlement with the Israeli Tax Commission on Disput
d Tax Withholding
BURLINGTON, Mass., April 21 /PRNewswire-FirstCall/ -- Ezenia! Inc., a
leading market provider of real-time collaboration solutions for corporate and
government networks and eBusiness, announced today a settlement agreement with
the Israeli Tax Commission (ITC), resulting in the receipt earlier this month
by the Company of cash proceeds related to the disputed amount, net of
interest earned and associated fees, to reach the settlement of $706,000.
This settlement relates to the agreement between the Company and Accord
Networks Ltd. ("Accord"), an Israeli company, reached in June of 2000, whereby
Accord agreed to pay the Company $6.5 Million to settle a patent infringement
lawsuit brought by the Company (the "Infringement Settlement Amount").
Subsequently, a dispute arose between the Company and the ITC regarding
Ezenia's liability to pay tax at source in Israel with respect to the
Infringement Settement Amount. At the time, both parties agreed that the
Company would deposit $975,000 in a trust account in Israel, to be held in
escrow by the Trustee until a final agreement was reached regarding Ezenia's
liability to pay tax at source in Israel. In August 2003, the Company lodged
an Appeal with the Israeli District Court in Tel- Aviv, leading to the
settlement agreement announced today.
"Although it took a much longer period of time than we would have
reasonably expected, we are pleased to bring this matter with the Israeli Tax
Commission to closure," noted Khoa Nguyen, Ezenia! Chairman and CEO. "The net
proceeds of $706,000 have significantly and positively impacted our available
balance of cash on hand. As we have worked to complete the long and painful
transition from a videoconferencing hardware company to a provider of
collaborative software solutions, we have faced significant challenges, both
operationally and with respect to our liquidity and capital resources, but
have continued to believe the direction we are taking is the right one. With
the receipt of the net proceeds of this settlement, and given the improvements
in our margin and the reductions we have realized in our operating expense run
rate noted previously, we are confident that the re-emerged Ezenia! in 2004 is
beginning to move past the severe financial constraints it has been operating
under in recent years. We believe our stronger financial position will prove
helpful in our goal of shaping the collaborative software industry in the
months and years ahead."
About Ezenia! Inc.
Ezenia! Inc. (OTC Bulletin Board: EZEN), founded in 1991, is a leading
provider of real-time collaboration solutions, bringing new and valuable
levels of interaction and collaboration to corporate networks and the
Internet. By integrating voice, video and data collaboration, the Company's
award-winning products enable groups to interact through a natural meeting
experience regardless of geographic distance. Ezenia! products allow
dispersed groups to work together in real-time using powerful capabilities
such as instant messaging, white boarding, screen sharing and text chat. The
ability to discuss projects, share information and modify documents allows
users to significantly improve team communication and accelerate the decision-
making process. More information about Ezenia! Inc. and its product offerings
can be found at the company's Web site, ezenia.com.
Note to Investors
Statements included herein that are not historical facts include forward-
looking statements. Such forward-looking statements involve risks and
uncertainties that could cause actual operating results to differ from those
indicated by such forward-looking statements. These risks and uncertainties
include the considerations that are discussed in the Management's Discussion
and Analysis section of the Company's 2003 Annual Report on Form 10-K for the
year ended December 31, 2003, such as the evolution of Ezenia!'s market, its
dependence on major customers, rapid technological change and competition
within the collaborative software market, its reliance on third party
technology, protection of its propriety technology, its history of liquidity
concerns and operating losses, and other considerations that are discussed
further in this report. Copies of the Company's 2003 Annual Report on Form
10-K for the year ended December 31, 2003, or other publicly available
financial information, may be received at no charge by contacting Investor
Relations at Ezenia!.
Note: Ezenia! is a registered trademark, and the Ezenia! Logo, Encounter,
InfoWorkSpace and LaunchPad are trademarks of Ezenia! Inc. Additional
information on Ezenia! and its products are available at
ezenia.com. All other trademarks are property of their respective
companies.
Contact:
Ezenia! Inc.
Investor Relations
(781) 505-2100
investorrelations@ezenia.com
SOURCE Ezenia! Inc.
-0- 04/21/2004
/CONTACT: Ezenia! Inc., Investor Relations, +1-781-505-2100,
investorrelations@ezenia.com/
/Web site: ezenia.com
(EZEN)
CO: Ezenia! Inc.; Israeli Tax Commission (ITC)
ST: Massachusetts, Israel
IN: CPR ITE NET
SU:
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