EZEN .48...they have now had net inc of $.07 per sh last 6mo...4th qtr and 1st qtr...and ahead it looks like clear sailing:
(PR NEWSWIRE) Ezenia! Inc. Announces 2004 First Quarter Results
Ezenia! Inc. Announces 2004 First Quarter Results
BURLINGTON, Mass., May 6 /PRNewswire-FirstCall/-- Ezenia! Inc. (OTC
Bulletin Board: EZEN), a leading provider of real-time collaboration solutions
for corporate and government networks and eBusiness, today reported its
operating results for its fiscal first quarter ended March 31, 2004.
The Company generated revenue of $2.6 million for the first quarter of
2004, compared to $2.4 million for the corresponding period in the previous
year. Net income for the quarter was approximately $409,000 or $.03 per
share, compared to a net loss of approximately $122,000 or ($.01) per share
reported for the first quarter of 2003.
"We are pleased to report our second consecutive quarter of profitability.
We continue to be encouraged by the positive trends in our business that
resulted in our continued profitability, noted Khoa Nguyen, Ezenia! Chairman
and CEO. "We believe our recently announced orders for InfoWorkSpace that
were received from the U.S. Joint Forces Command (JFCOM) and the U.S. Defense
Intelligence Agency (DIA), and the Non-Recurring Engineering (NRE) development
contract received from the United States Government to enhance and add key
features to the InfoWorkSpace product line, are indicative of the growing
demand for InfoWorkSpace within this target market. Revenues related to
InfoWorkSpace were 80% higher in the first quarter of 2004 compared to the
same quarter in the prior year and represent more than 90% of first quarter
revenues, as compared to 55% of total revenues in the same quarter last year.
Margins on InfoWorkSpace sales in the first quarter of 2004 grew to 61.6%
compared to 54.3% in the same quarter of the prior year. This increase
partially offsets a decline in total gross margin which was 60.1% in the first
quarter of 2004 versus 64.5% in the in the same quarter of the prior year.
The overall decline in gross margin was a result of an expected continued
decline in the sale of the company's legacy video conferencing equipment, from
$1.1 million in the first quarter of 2003 to approximately $226,000 in the
first quarter this year.
"As a result of our continuing focus on cost control, quarterly operating
expenses declined to $1.2 million in the first quarter of 2004 compared with
$1.7 million in the same period last year. Strong revenues, lower expenses,
and increased management of accounts receivable collections resulted in the
company closing the quarter with total cash of $3.8 million, significantly
higher than our balance on hand at any time during 2003. Subsequent to the
close of the quarter the company announced that it had received approximately
$706,000 in cash from a settlement it negotiated with the Israeli Tax
Commission which will serve to further improve the company's cash position.
Having now completed the long and painful transition from a
videoconferencing hardware company to a provider of collaborative software
solutions, the improved financial condition of the re-emerged Ezenia! in 2004
stands in stark contrast to the severe financial constraints the company had
been operating under in recent years. While the road ahead remains
operationally very challenging, we continue to believe the direction we are
taking is the right one."
About Ezenia! Inc.
Ezenia! Inc. (OTC Bulletin Board: EZEN.OB), 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 of Ezenia! Inc., and the Ezenia!
Logo and InfoWorkSpace are trademarks of Ezenia! Inc. Additional information
on Ezenia! and its products is available at http:// www.ezenia.com.
Ezenia! Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except for per share related data)
(Unaudited)
For the Three months
Ended March 31,
2004 2003
Revenues
Product revenues $2,513 $2,252
Service revenues 112 148
$2,625 $2,400
Cost of revenues
Cost of product revenues 923 759
Cost of service revenues 124 93
$1,047 $852
Gross profit $1,578 $1,548
Operating expenses
Research and development 290 715
Sales and marketing 264 400
General and administrative 405 283
Occupancy and other facilities
related expenses 213 275
Total operating expenses $1,172 $1,673
Income (Loss) from operations $406 ($125)
Interest/Other income (expense) 3 3
Net income (loss) $409 ($122)
Net Income (Loss) per Share:
Basic and diluted $0.03 ($0.01)
Condensed Consolidated Balance Sheets
(In Thousands)
(Unaudited)
March 31, December 31,
2004 2003
Assets
Current Assets
Cash and Marketable securities $3,809 $2,316
Accounts receivable, net 952 2,745
Prepaid software license 2,517 1,724
Other current assets 265 297
Total Current Assets $7,543 $7,082
Equipment and Improvements, net of
accumulated depreciation 17 -
Total Assets $7,560 $7,082
Liabilities and stockholders' equity
Total current liabilities $6,503 $6,530
Total stockholders' equity
(deficit) 1,057 552
Total liabilities and stockholders'
equity $7,560 $7,082
Contact:
Ezenia! Inc.
Investor Relations
(781) 505-2192
investorrelations@ezenia.com
SOURCE Ezenia! Inc.
-0- 05/06/2004
/CONTACT: Investor Relations, Ezenia! Inc., +1-781-505-2192,
investorrelations@ezenia.com /
/Web site: ezenia.com
(EZEN)
CO: Ezenia! Inc.
ST: Massachusetts
IN: CPR NET
SU: ERN
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