CenterSpan Communications Reports Second 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)--July 19, 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. ) 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 content distribution solutions, today announced its second quarter 2001 financial results. For the second quarter ended June 30, 2001, the company reported a total net 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 of $4,931,000, or a loss of $0.61 per share, compared to the first quarter of 2001 in which the company reported a loss of $4,494,000, or a loss of $0.59 per share. For the six months ended June 30, 2001, the company reported a net loss from continuing operations of $9,425,000, or a loss of $1.20 per share. 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. increased in the second quarter 2001 to $5,043,000, up from $4,647,000 in the first quarter 2001, as the company continues its development of its proprietary P2P digital distribution channel, code-named C-star, and prepares for the commercial launch of 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. .com, the company's branded digital media and entertainment destination. Total operating expenses less $1,230,000 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) for depreciation, amortization and non-employee equity compensation were $3,813,000 for the second quarter of 001. CenterSpan ended the second quarter 2001 with $12,722,000 in cash and restricted cash. During the quarter, the company issued 569,000 shares of common stock at a price of $11.21 per share and received $6,400,000 in new equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. . The company ended the quarter with approximately 8,600,000 shares outstanding. Strengthened Management Team During the quarter, CenterSpan fortified fortified (fôrt  ´fīd),adj containing additives more potent than the principal ingredient. its management team with the promotion of Steve Frison to president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. and the hiring of Michael D. Hudson as the company's new vice president and chief technology officer. Recently, CenterSpan also hired Alfred M. Lee as vice president of engineering. These officers will be integral to the management of engineering, new technology development and marketing support for C-star and Scour. C-star CenterSpan's innovative C-star P2P technology has enabled the company to create one of the lowest cost digital distribution channels available today. Scour is the first branded retail view of the C-star channel. CenterSpan will be showcasing the C-star peer-to-peer digital distribution channel by way of CenterSpan's sponsorship and participation in Jupiter Research's Plug-In conference in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of next week. Scour The Scour beta continues on track as a successful showcase of the C-star technology. "The objective has been to use the Scour beta to support our discussions and negotiations with content providers. This has enabled content providers to get comfortable with the C-star platform and our proprietary approach to the seamless integration An addition of a new application, routine or device that works smoothly with the existing system. It implies that the new feature or program can be installed and used without problems. Contrast with "transparent," which implies that there is no discernible change after installation. of a central server based Refers to hardware or software that runs in the server. Contrast with client based. catalog catalog, descriptive list, on cards or in a book, of the contents of a library. Assurbanipal's library at Nineveh was cataloged on shelves of slate. The first known subject catalog was compiled by Callimachus at the Alexandrian Library in the 3d cent. B.C. with a distributed peer-to-peer hosting environment See hosted environment. coupled with support for Digital Rights Management," stated 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. . As the planned subscription launch approaches later this year, CenterSpan will begin targeting acquisition efforts at the more than two million former Scour users not yet participating in the new Scour. "During the quarter, we achieved a number of important milestones," continued Hausmann. "We strengthened our management team with individuals who have led the development of next-generation, edge-caching technology supporting the digital distribution of content. We have created one of the lowest cost digital distribution channels available today, and we are pursuing strategic opportunities to leverage the capabilities of the C-Star distribution channel through licensing." "Our new equity financing was a key accomplishment this quarter, and provides additional capital for the development and promotion of the C-Star digital distribution channel and our Scour.com property. In addition, our Digital Media and Entertainment Group is in active discussions and negotiations for major strategic relationships with content providers. I look forward to the upcoming months as we add more content and continue the roll-out of the C-Star distribution channel and Scour subscription service," concluded Hausmann. Investor Conference Call Interested parties can access today's conference call at 1:30 p.m. Pacific Daylight Time, discussing the second quarter results by going to CenterSpan's web site at www.centerspan.com or StreetEvents at www.streetevents.com, or may dial in to 212/346-6445. A replay of CenterSpan's quarterly conference call will be available via the Internet through StreetEvents, CenterSpan's website, or for 48 hours after the call at the dial-in number 800/633-8284 with passcode 19319839. About CenterSpan Communications Corporation CenterSpan Communications Corp. develops and markets next-generation peer-to-peer Internet content distribution solutions. The company has created the lowest cost channel enabling the distribution of digital entertainment 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 Scour, one of the most widely visited consumer online entertainment destinations in the world, was acquired by CenterSpan in December 2000. CenterSpan has redesigned Scour as the premier source for high quality legitimate entertainment content. Scour launched in beta version A pre-shipping release of hardware or software that has gone through alpha test. A beta version of software is supposed to be very close to the final product, but, in practice, it is more a way of getting users to test the software in the first place under real conditions. in March 2001 and is undergoing consumer testing, with the open beta site An organization or group that is beta testing hardware and/or software. See beta test. found at www.scour.com. Scour's subscription service is targeted for release in the second half of 2001.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. CenterSpan is a venture stage company. The Company's peer-to-peer Internet content distribution channel is a new business in a rapidly evolving market. Specific statements regarding the timely launch of content distribution services, 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 Six Months Ended
June 30, June 30,
------------------ ------------------
2001 2000 2001 2000
-------- -------- -------- --------
Revenues $ - $ 1 $ 12 $ 1
Cost of goods sold - - - -
-------- -------- -------- --------
Gross profit - 1 12 1
Operating expenses:
Research and engineering 1,764 2,158 3,909 2,710
Selling, general and
administrative 3,279 1,533 5,781 2,596
-------- -------- -------- ---------
Total operating expenses 5,043 3,691 9,690 5,306
-------- -------- -------- ---------
Loss from operations (5,043) (3,690) (9,678) (5,305)
Interest income 138 260 279 495
Interest expense (26) - (26) -
-------- -------- -------- ---------
Loss from continuing
operations (4,931) (3,430) (9,425) (4,810)
Gain from disposal of
discontinued operations, net - - 604 -
-------- -------- -------- ---------
Net loss $(4,931) $(3,430) (8,821) $(4,810)
======== ======== ======== =========
Basic and diluted loss per
share from continuing
operations: $ (0.61) $ (0.55) $ (1.20) $ (0.78)
======== ======== ======== =========
Basic and diluted gain per
share from disposal of
discontinuing operations $ - $ - $ 0.08 $ -
======== ======== ======== =========
Basic and diluted net loss per
share: $ (0.61) $ (0.55) $ (1.12) $ (0.78)
======== ======== ======== =========
Weighted average common
shares -- basic and
diluted 8,113 6,187 7,861 6,135
======== ======== ======== =========
CENTERSPAN COMMUNICATIONS CORPORATION
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
June 30, Dec. 31,
2001 2000
------------ ------------
(unaudited)
Cash and cash equivalents $ 12,231 $ 7,701
Restricted cash 491 2,420
Prepaid and other expenses 344 42
Other assets 9,574 10,692
------------ ------------
Total assets $ 22,640 $ 20,855
============ ============
Accounts payable $ 380 $ 608
Notes payable $ 520
Accrued liabilities 761 2,557
Shareholders' equity 20,979 17,690
------------ ------------
Total liabilities and
shareholders' equity $ 22,640 $ 20,855
============ ============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion