November 12, 2009 – 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 third quarter ended September 30, 2009.
Revenue was approximately $819,000 for the third quarter of 2009 and $2.7 million for the nine months ended September 30, 2009, a decrease of 53.1% and 48.7% from the same periods ended September 30, 2008, respectively. Loss of revenue from the Intelligence Community (IC) and Department of Defense (DoD), due primarily to collaborative products 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.
Operating results yielded losses of approximately $901,000 for the third quarter and $2.8 million for the nine months ended September 30, 2009, compared to losses of $747,000 and $2.3 million for the same periods in 2008, respectively. Operating costs declined to approximately $1.4 million for the third quarter and $4.4 million for the nine months of the year ended September 30, 2009, compared to $1.8 million and $5.5 million for the same periods ended September 30, 2008, respectively. The decline in spending is attributed to continued reductions in employee-related costs, consulting fees, and occupancy expenses. Net losses were approximately $864,000, or ($0.06) per share, for the third quarter and $2.8 million, or ($0.19) per share, for the nine months of the year ended September 30, 2009, as compared to net losses of approximately $748,000, or ($0.05) per share, and $2.2 million, or ($0.15) per share, for the same periods in 2008, respectively.
“The decrease in revenue this quarter and for the nine months of the year is directly attributable to the booking shortfalls of new and renewal subscription licenses. We continue to experience severe difficulty, having to compete against offerings sponsored by DISA to the same customers free of charge . Even when customers decide to purchase InfoWorkSpace, the purchasing process can be delayed through elaborate approval procedures,” noted Mr. Khoa Nguyen, Chairman and Chief Executive Officer of Ezenia. “Combined with the uncertain economic conditions and reluctance of customers in adjacent markets to spend, Ezenia faces lengthened sales cycles in commercial and non-military segments. In the meantime, we continue to focus on further reducing operating expenses,where possible, minimizing cash consumption while striving to return the company 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.
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.