Nashua , N.H. , May 14, 2008 – Ezenia! Inc. (OTCBB:EZEN.OB), a leading market provider of real-time collaboration solutions for corporate and government networks, today reported financial results for its first quarter ended March 31, 2008.
Revenue was approximately $1.8 million for the first quarter of 2008, a 32.1% decrease from approximately $2.7 million for the first quarter of 2007. The Company continues to believe that the decline reflects the impacts of budgetary constraints and uncertainties within the Department of Defense (DOD) as well as delays and reductions of purchases due to market confusion created by the Net-Centric Enterprise Services (NCES) programs, administered by the Defense Information System Agency (DISA), which began in 2006 and continue today.
For the first quarter of 2008, net loss was approximately $553 thousand or ($0.04) per share, as compared to net income of approximately $16 thousand, or $0.00 per share, for the first quarter of 2007. Operating costs, in line with expectations, increased 6.1% to approximately $1.7 million as compared to approximately $1.6 million for the first quarter in 2007, primarily due to investments in the Sales and Marketing groups to address new markets for our products.
The Company believes that there are potential opportunities of recovery and expansion in the existing customer base, in spite of the uncertain environment in the Defense segment, and new, first-time growth opportunities in the commercial segment. With a cash balance of approximately $9.4 million at the end of the quarter, the Company will continue to make investments, as needed, in its sales and marketing efforts, continuously enhance its current product, develop new products, and aggressively pursue all business opportunities to grow its revenue and return to profitability.
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 2007 Annual Report on Form 10-K as amended for the year ended December 31, 2007, 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.
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.