CenterSpan Communications Reports First Quarter Results.Business Editors HILLSBORO Hillsboro, city (1990 pop. 37,520), seat of Washington co., NW Oreg., in the Tualatin valley; inc. 1876. Integrated circuits, other high-tech products, furniture, plastics, and medical equipment are manufactured in this growing city in Oregon's "Sunset Corridor. , Ore.--(BUSINESS WIRE)--May 2, 2001 CenterSpan Communications Corporation (Nasdaq:CSCC CSCC Calgary Sports Car Club (Alberta, Canada) CSCC Clemson Sports Car Club CSCC Columbus State Community College (Ohio) CSCC Classic Sports Car Club (UK) ), a leading developer of next generation peer-to-peer From user to user. Peer-to-peer implies that either side can initiate a session and has equal responsibility. Peer-to-peer is a somewhat confusing term, because it has always been contrasted to a central system that initiates and controls everything. (P2P See peer-to-peer and point-to-point. ) software technologies, today announced its first quarter 2001 financial results. For the first quarter ended March 31, 2001, the company reported a total net loss of $3,890,000, or a loss of $0.51 per share, compared to the year ago period in which the company reported a loss of $1,380,000, or a loss of $0.23 per share. Included in the quarter ending March 31, 2001, was a non-cash gain from disposal of discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. of $604,000, or $0.08 per share, related to the final settlement and release of restricted cash from the sale of the ThrustMaster Company Info Thrustmaster, is a designer and developer of joysticks, game controllers, and steering wheels for PCs and video gaming consoles alike. It has many licensing agreements with third party, prestigious brands such as Ferrari®, TOP GUN™, Beretta® and hardware business in 1999. The company's loss from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter ended March 31, 2001, was $4,494,000, or a loss of $0.59 per share. As planned in development of the Scour scour, scours 1. the chemical and physical cleaning of fleece wool. 2. diarrhea. dietetic scour see dietary diarrhea. peat scour see secondary nutritional copper deficiency. Exchange and preparation for the commercial launch of its service, the company continued to invest heavily in research and engineering and administrative infrastructure, with total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. increasing in the first quarter 2001 to $4,647,000, up from $1,615,000 in the first quarter 2000. Operating expenses for the first quarter of 2001 included approximately $1,300,000 of non-cash expenses Noun 1. non-cash expense - an expense (such as depreciation) that is not paid for in cash disbursal, disbursement, expense - amounts paid for goods and services that may be currently tax deductible (as opposed to capital expenditures) related to the Scour assets purchased in December December: see month. of 2000. Research and engineering expenses for the first quarter 2001 increased to $2,145,000, compared to $522,000 in the first quarter 2000. CenterSpan ended the first quarter 2001 with $10,443,000 in cash and no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . The New Scour Exchange On March 26, 2001, CenterSpan announced the start of the beta test A test of new or revised hardware or software that is performed by users at their facilities under normal operating conditions. Beta testing follows alpha testing. Vendors of packaged software often offer their customers the opportunity of beta testing new releases or versions, and the of the new Scour Exchange(TM), in which CenterSpan is testing and showcasing its secure content delivery infrastructure. The beta has attracted stronger than anticipated initial interest, with over 500,000 people pre-registered to participate in the phased ramp-up program. CenterSpan is gathering feedback from its beta consumer users, providing significant insight into use patterns and perceptions of the new Scour Exchange. These data are assisting in the preparation for the launch of fee-based services in the second half of 2001. "The incredible response to the Scour Exchange Beta demonstrates that consumers are ready to try out a secure, digital distribution network that offers legitimate content," said Frank G. Hausmann, CenterSpan's chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. . "The strength of the Scour brand is evident based on the positive response. We are receiving interest in our Scour Exchange Beta at a rate of more than double the number of registrations we initially projected, and we look forward to introducing our fee-based service along with top tier content in the second half of this year." Investor Conference Call Interested parties can access today's conference call at 1:30 PM Pacific Daylight Time discussing the first quarter results by going to CenterSpan's web site at www.centerspan.com or StreetEvents at www.streetevents.com, or may dial in to 212/271-4774. A replay of CenterSpan's quarterly conference call will be available via the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the through StreetEvents, CenterSpan's website, or for 48 hours after the call at the dial-in number 800/633-8284 with passcode 18707650. About CenterSpan Communications Corporation CenterSpan Communications Corp. is a developer and marketer of peer-to-peer (P2P) Internet communication and collaboration Working together on a project. See collaborative software. solutions. The company has launched the new Scour Exchange, a next generation peer-to-peer digital distribution channel enabling members to search for and enjoy digital content, such as music and video files, in a secure and legal environment. CenterSpan is headquartered in Portland, Oregon Oregon, city, United States Oregon, city (1990 pop. 18,334), Lucas co., NW Ohio, a suburb adjacent to Toledo, on Lake Erie; inc. 1958. It is a port with railroad-owned and -operated docks. The city has industries producing oil, chemicals, and metal products. , and recently opened offices for its Digital Media and Entertainment Group in Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. to spearhead its content partnership efforts. CenterSpan is an Intel Capital portfolio company. Visit www.centerspan.com for more information. About Scour and Scour Exchange Scour.com, one of the most widely visited digital entertainment portals on the web, was acquired by CenterSpan in December 2000. Scour Exchange was the site's popular peer-to-peer network (1) A network of computers configured to allow certain files and folders to be shared with everyone or with selected users. Peer-to-peer networks are quite common in small offices that do not use a dedicated file server. for the distribution and sharing of music, video and movies. CenterSpan has redesigned Scour Exchange as the premier channel for the secure and legal distribution of entertainment content. Visit www.scour.com to learn more. This press release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Investors are cautioned that forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. The Company's peer-to-peer Internet communications and collaboration initiative is a new business in a rapidly evolving market. Specific statements regarding the timely release of new products, content acquisition, number of registered users, new business opportunities, new revenue model and potential earnings leverage are forward-looking statements. Investors are encouraged to review the Company's filings with the Securities and Exchange Commission, including the Company's 2000 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. , for a further description of the risks and uncertainties relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc forward-looking statements made by the Company, as well as to other aspects of the Company's business.
CENTERSPAN COMMUNICATIONS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)
(Unaudited)
Three Months Ended
March 31,
-------------------
2001 2000
-------- --------
Revenues $ 12 $ -
Cost of goods sold - -
-------- --------
Gross profit 12 -
Operating expenses:
Research and engineering 2,145 552
Selling, general and administrative 2,502 1,063
-------- --------
Total operating expenses 4,647 1,615
-------- --------
Loss from operations (4,635) (1,615)
Interest income 141 235
-------- --------
Loss from continuing operations before taxes (4,494) (1,380)
Provison from income taxes - -
-------- --------
Loss from continuing operations (4,494) (1,380)
Gain from disposal of
discontinued operations, net 604 -
-------- --------
Net loss $(3,890) $(1,380)
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Basic and diluted (loss) per share
from continuing operations: $ (0.59) $ (0.23)
======== ========
Basic and diluted gain per share from
disposal of discontinuing operations: $ 0.08 $ -
======== ========
Basic and diluted net (loss) per share: $ (0.51) $ (0.23)
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Weighted average shares outstanding:
Basic 7,607 6,083
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Diluted 7,607 6,083
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CENTERSPAN COMMUNICATIONS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
March 31, Dec. 31,
2001 2000
--------- ---------
(unaudited)
Cash and cash equivalents $ 10,443 $ 7,701
Restricted cash - 2,420
Accounts receivable, net 2 -
Prepaid and other expenses 444 42
Other assets 9,575 10,692
--------- ---------
Total assets $ 20,464 $ 20,855
========= =========
Accounts payable $ 613 $ 608
Accrued liabilities 699 2,557
Shareholders' equity 19,152 17,690
--------- ---------
Total liabilities and shareholders' equity $ 20,464 $ 20,855
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