Burlington, Mass., April 5, 2005 – Ezenia! Inc. (OTCBB:EZEN.OB), a leading market provider of secure real-time collaboration solutions for government networks and eGovernment, today reported that the going concern paragraph has been removed from its audit opinion contained in their recently filed 10K report for the year ended December 31, 2004.
The Going Concern assumption in Generally Accepted Auditing Standards (SAS 59, The Auditor’s Consideration of an Entity’s Ability to Continue as a Going Concern) requires an auditor to evaluate conditions or events that raise questions about an entity’s ability to continue as a going concern. Typically, if an auditor has concerns about a firm’s ability to continue as a going concern, the audit opinion will contain a paragraph outlining issues with this assumption. In its recently filed 10K report for the year ended December 31, 2004, Ezenia’s auditors did not include any such going concern paragraph in their audit opinion, as was the case for the year ended December 31, 2003.
“Having the going concern issue removed from our audit opinion is a significant accomplishment, further affirming Ezenia’s successful transformation to a leading and consistently profitable collaboration software solutions provider,” noted John McMahon, Ezenia Corporate Controller. “Having the stigma associated with a going concern opinion removed restores confidence, not only in our stockholders, but also in the capital markets and investing public in general. We have recorded five consecutive quarters of profitability, generated approximately $1.8 million in operating profit (for the first time since 1998) and $3.2 million in cash from operations in 2004. Having laid a solid financial foundation in 2004, not only in terms of our fundamental numbers, but also in the conscious awareness of our employees, we remain absolutely focused in executing our long term strategy to continue the growth of the Company,” further remarked Mr. McMahon.
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
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 2006 Annual Report on Form 10-K for the year ended December 31, 2004, 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 2004 Annual Report on Form 10-K for the year ended December 31, 2004, 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 our website http://www.ezenia.com.