Nashua, N.H., March 29, 2010 – Ezenia! Inc. (OTCBB: EZEN.OB), a leading market provider of real-time situation awareness, command and control solutions for corporate and government networks, today reported its financial results for the fourth quarter and full year ended December 31, 2009.
Revenue for the fourth quarter of 2009 was approximately $817,000, flat from the third quarter of 2009 but a decrease of 41.2% from approximately $1.4 million for the fourth quarter of 2008. The quarterly loss from operations was approximately $672,000 or ($0.05) per share, as compared to approximately $872,000 in quarterly losses from operations, or ($0.06) per share, a year ago. Operating expenses declined to approximately $1.3 million from approximately $1.7 million for the same period in 2008, due to reduced headcount and restructuring charges. Net quarterly loss was approximately $662,000 or ($0.05) per share, as compared to a net loss of approximately $885,000, or ($0.06) per share, a year ago.
For the year ended December 31, 2009, revenue was approximately $3.5 million, a 47.8% decrease from approximately $6.7 million for the year ended December 31, 2008. The reported loss from operations in 2009 was approximately $3.5 million or ($0.23) per share, as compared to the loss from operations in 2008 of approximately $3.1 million or ($0.21) per share. For 2009, the net annual loss was approximately $3.4 million, or ($0.23) per share, compared to a net annual loss in 2008 of approximately $3.1 million or ($0.21) per share. Cash and cash equivalents at year end 2009 were approximately $4.4 million, a $2.4 million decrease from year end 2008. Operating expenses declined to approximately $5.7 million from approximately $7.2 million for 2008, due to reduced headcount, consultants, supplies and restructuring charges.
“Loss of revenue from certain agencies in the Intelligence Community (IC) and various organizations in the Department of Defense (DoD), due primarily to a collaborative product sponsored and offered free of charge by the Defense Information System Agency (DISA) to these customers, continues to adversely impact our sales of new and renewal InfoWorkSpace licenses,” noted Mr. Khoa Nguyen, Chairman and Chief Executive Officer of Ezenia. “In July 2009, we made additional adjustments to further optimize the Company expense profile while continuing our investments in engineering to develop new products and system solutions and critical areas of sales where we believe that our existing penetration could expand and new opportunities could be won,” further commented Mr. Nguyen. “In the first quarter of 2010, our new product for the commercial market is currently undergoing beta trials with targeted announcement planned for the summer timeframe. Despite elaborate approval procedures in the DoD procurement process, our main product InfoWorkSpace scored several renewal orders and expansion in two facets of the Intelligence Community and Command and Control in Air Force Operations. While these bookings will not be reflected immediately due to the pro-rata recognition of our license revenue, they are expected to contribute positively to our cash balance once invoiced and collected. In addition, Ezenia also enjoyed a committed backlog of training and consulting services of approximately $500,000 at year end.” Mr. Nguyen concluded, “The management team is dedicated in its efforts to build on the momentum of the first quarter and expand our business for the rest of the year. While many serious and difficult challenges remain ahead, with anticipated new product announcements and targeted focus on specific accounts within the DoD, we are striving to return the Company to profitability.”
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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 2009 Annual Report on Form 10-K as amended for the year ended December 31, 2008, 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.