CGNW.30.Up huge today on making two cents per share profit.Small floater.Cognigen Networks, Inc. Announces Financial Results for Quarter and Six Months Ended December 31, 2003: Net Income Is Positive and Operating Expenses Decrease
Thursday February 19, 12:05 am ET
SEATTLE, Feb. 19 /PRNewswire-FirstCall/ -- Cognigen Networks, Inc. (OTC Bulletin Board: CGNW - News), the Seattle based Internet-enabled marketer of communications services, reseller and facilities based carrier, today announced financial results for the three and six month periods ended December 31, 2003. Complete unaudited details can be obtained from the Quarterly Report on Form 10-QSB that Cognigen will file today with the SEC, which may be accessed through Edgar Online and similar services.
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Cognigen's CFO, Gary L. Cook, stated, "Our fiscal year's second quarter operating results show positive net income coupled with a slight reduction in operating expenses. For the quarter ended December 31, 2003, Cognigen reported net income of $236,983 compared to net income of $245,014 for the same quarter in 2002. Results for the six months ended December 31, 2003, show net income of $44,083 compared to net income of $299,148 for the same period in 2002. On the revenue side, quarter to quarter comparisons with fiscal year 2002, reveal a reduction in total revenue of $5,273 in 2003. Part of this shortfall is attributable to a drop-off in revenue due to defaulted commission payments from certain former vendors. Marketing commissions decreased by 26% from $1,652,960 for the quarter ended December 31, 2002, to $1,229,612 for the same quarter in 2003. Concurrently, telecommunication services revenue increased by 53% from $1,040,896 for the quarter ended December 31, 2002, to $1,594,118 for the same quarter in 2003. The decrease in marketing commissions and increase in telecommunication services revenue is largely a result of the strategic transition in the Company's business profile and delivery of products and services. More products and services now sold by Cognigen are proprietary so that the end user revenue is recorded versus only a commission on that end user revenue derived from products and services sold on behalf of other vendors. Income per common share-basic and diluted was $0.02 for the quarter ended December 31, 2003, and slightly positive for the six months ended December 31, 2003."
Thomas S. Smith, Cognigen's president and CEO, commented, "We are gratified with our return to positive net income for the quarter, and with what appears to be a leveling off of the rate of revenue loss. Cognigen's mission is to achieve a greater rate of growth and market share. If Cognigen is successful in its mission, it should lead to improved profitability. To attempt to realize these goals we are expanding our offerings of bundled local and long distance service, and improving our cost competitive menu of business services. Offerings of new and improved Internet access service, conference calling and T-1 systems are being made available on our websites. These will provide our network of independent agents with a broader array of products and services to reach existing residential customers and to attract new and higher volume business subscribers through competitive pricing. This is being accomplished as we take further steps to reduce operating costs and improve productivity."
About Cognigen
Cognigen Networks, Inc., based in Seattle, Washington, offers a wide range of telecommunication services and related technology products via its Web site, cognigen.com . Cognigen's robust marketing engine harnesses distribution channels featuring a prominent Internet presence, a network of independent agents and several affiliate groups, each having their own customized Web site. Cognigen's agent initiated sales as well as those generated directly off its main website are fulfilled via proprietary software utilizing the Internet. Cognigen resells the services of industry leaders such as AT&T Wireless, Sprint, Verizon, MCI, Global Crossing, and Talk America. Cognigen operates a wholly owned subsidiary, Cognigen Switching Technologies (CST), based in San Luis Obispo, California, and Cognigen Resale Division (CRD), based in Seattle. CST is an FCC licensed international and interstate facilities based carrier. Cognigen is a licensed reseller or applicant for certification of long distance telephone service in a number of states. CST is licensed as a CLEC in 3 states. Since September of 1999, Cognigen has sold, on behalf of its vendors and for its own account, services and products to approximately 760,000 customers worldwide. |
