Nashua, N.H. (September 14, 2006) - Ezenia! Inc. (OTCBB:EZEN.OB), a leading market provider of real-time collaboration solutions for corporate and government networks and eBusiness, today announced that its third quarter 2006 revenue will be in the range of $2.8-$3.0M, and expects its overall performance for the year 2006, with respect to total revenue and earnings per share, to either be flat or show very modest growth from comparable results of 2005. The Company
further expects to remain profitable and to continue to generate positive cash flow for the remainder of this year. Ezenia! expects to report its full third quarter 2006 financial results on November 2, 2006.
The shortcoming in revenue of the third quarter of 2006 has been a direct result of delays and lengthened sales cycles, due to the shortage of available funding and discretionary spending traditionally available and exercised as the end of the government fiscal year approaches. With expenses overrunning defense appropriations in the support of the wars against terrorism in Iraq and Afghanistan, spending on information technology (IT) has been significantly curtailed resulting in delays and
postponement of purchases of InfoWorkSpace (IWS) licenses, services programs, and development contracts.
"Despite the current tight budgetary environment for IT spending within the Department of Defense ("DoD"), we remain optimistic on the core principles of our business and will continue to invest in expanding our sales and services groups for both the DoD and non-DOD market segments as well as our engineering organization. For the first time, sales investments enable us to have dedicated sales teams and leadership to address each of these market segments while engineering
investments enable advanced development of next generation products that will complement and further augment IWS competitive posture," noted Khoa Nguyen, Ezenia! Chairman and Chief Executive Officer. "Most recently we were gratified that InfoWorkSpace, which already received the AFCEA award in June, was further selected in the Best-of-Breed competitive evaluation program sponsored by the Army. In spite of the disappointing outlook for the third quarter of 2006, we remain steadfast in
our investment strategy and in our conviction that, by staying close to the customers and serving the needs of the Warfighters, Intelligence Community, and first responders - the true heroes of the nation's war against terrorism - we will achieve a more commensurate growth rate in the long term."
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,www.Ezenia.com.
Note to Investors Regarding Forward-Looking Statements
Statements included herein that are not historical facts may be considered forward-looking statements. You can identify these forward-looking statements by use of the words “expects,” “anticipates,” “estimates,” “believes,” “projects,” “intends,” “plans,” “will,” “may,” and similar words. Such forward-looking statements, including statements regarding our business and financial outlook, long-term strategy, improvements in our infrastructure, and proposed earnings per share growth targets, involve risks and uncertainties that could cause actual operating results to differ materially from those indicated by such forward-looking statements. These risks and uncertainties include the considerations that are discussed in the Company's 2005 Annual Report on Form 10-K as amended for the year ended December 31, 2005, such as its dependence on the United States government as its largest customer, adverse changes in available funding and discretionary spending within the Department of Defense, its dependence on other major customers, the evolution of Ezenia!'s market, rapid technological change and competition within the collaborative software market, its reliance on third-party technology, protection of its propriety technology, acceptance of IWS in the commercial market, retention of key employees, stock price volatility, customer acceptance of Version 3.0 of InfoWorkSpace, its history of liquidity concerns and operating losses, and other considerations that are discussed further in such report. You should not place undue reliance upon any such forward-looking statements, which speak only as of the date made. The Company disclaims any obligation to update forward-looking statements after the date of such statements.
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 our website http://www.ezenia.com.