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C2 Global Technologies Inc. Reports 2008 Third Quarter Results TORONTO, ONTARIO--(MARKET WIRE)--Nov 10, 2008 -- C2 Global Technologies Inc. ("C2" or the "Company") (OTC BB:COBT.OB - News) today reported its financial results for the third
quarter ended September 30, 2008. All amounts are stated
in US dollars.
The Company had net income of $4.0 million or $0.18 per common share, basic and diluted, for the third quarter of 2008, compared to a net loss of $0.4 million or $0.02 per common share, basic and diluted, for the third quarter of 2007. For the third quarter of 2008 the Company's revenue from continuing operations was $9.5 million, compared to $nil for the third quarter of 2007. The revenue is from a settlement and license agreement that the Company entered into in September 2008 with Qwest Communications International, Inc., Global Crossing Limited, Level 3 Communications, Inc. and Sonus Networks, Inc. with respect to the Company's intellectual property. This agreement effectively concludes the Company's patent litigation that was begun in June 2006. For the nine months ended September 30, 2008, the Company had net income of $6.1 million compared to a net loss of $1.4 million for the nine months ended September 30, 2007. The net income per common share for the nine months ended September 30, 2008 was $0.27, basic and diluted, compared to a net loss of $0.06, basic and diluted, for the nine months ended September 30, 2007. The Company's revenue from continuing operations for the nine months ended September 30, 2008 was $17.6 million. All of the revenue is from settlement and license agreements with companies that are employing the Company's patents. The Company had no operating revenue for the nine months ended September 30, 2007. On July 14, 2008, the Company was awarded a patent in South Korea for its Voice Internet Transmission System patent, which is equivalent to its U.S. Patent No. 6,438,124. "We are extremely pleased with our continued success in licensing our patents to companies with the stature of Qwest, Global Crossing and Level 3. We plan to continue to pursue licenses from other entities that are using our patented technology, which includes corresponding patents in Australia, Canada, China and Europe", said Allan Silber, Chairman and CEO of C2. Please see the Company's Annual Report on Form 10-K for the year ended December 31, 2007, filed with the SEC on March 11, 2008, and the Company's Quarterly Report on Form 10-Q for the three months ended September 30, 2008, filed with the SEC on November 7, 2008, for further information. About C2 Global Technologies Inc. C2's business is focused on licensing its patents, which include two foundational patents in VoIP technology. C2 plans to realize value from its intellectual property by offering licenses to service providers, equipment companies and end-users that are deploying VoIP networks for phone-to-phone communications. C2 also invests in Internet-based e-commerce businesses. For further information, please visit C2's website at www.c-2technologies.com. Forward-Looking Statements This release contains certain "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act, as amended, that are based on management's exercise of business judgment as well as assumptions made by, and information currently available to, management. When used in this document, the words "may", "will", "anticipate", "believe", "estimate", "expect", "intend", and words of similar import, are intended to identify any forward-looking statements. You should not place undue reliance on these forward-looking statements. These statements reflect our current view of future events and are subject to certain risks and uncertainties as noted in our securities and other regulatory filings. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, our actual results could differ materially from those anticipated in these forward-looking statements. We undertake no obligation, and do not intend, to update, revise or otherwise publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date hereof or to reflect the occurrence of any unanticipated events. Although we believe that our expectations are based on reasonable assumptions, we can give no assurance that our expectations will materialize. Many factors could cause actual results to differ materially from our forward-looking statements.
C2 GLOBAL TECHNOLOGIES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and September 30, December 31,
per share amounts) 2008 2007
------------------------------- -----------------------------
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 5,523 $ 67
Deferred income tax asset 481 1,000
Other current assets 105 17
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Total current assets 6,109 1,084
Other assets:
Intangible assets, net 5 20
Goodwill 173 173
Investments 635 519
Deferred income tax asset 525 -
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Total assets $ 7,447 $ 1,796
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
Current liabilities:
Accounts payable and accrued
liabilities $ 2,211 $ 402
Notes payable to a related party - 2,335
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Total liabilities 2,211 2,737
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Stockholders' equity (deficit):
Preferred stock, $10.00 par value,
convertible, non-redeemable,
authorized 10,000,000 shares; issued
and outstanding 597 shares at
September 30, 2008 and 607 shares at
December 31, 2007; liquidation
preference of $597 at September 30,
2008 and $607 at December 31, 2007 6 6
Common stock, $0.01 par value,
authorized 300,000,000 shares;
issued and outstanding
22,745,410 shares at September 30,
2008 and 23,095,010 shares at
December 31, 2007 227 231
Additional paid-in capital 274,741 274,672
Accumulated deficit (269,738) (275,850)
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Total stockholders' equity (deficit) 5,236 (941)
----------- -------------
Total liabilities and stockholders'
equity (deficit) $ 7,447 $ 1,796
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The notes contained in our Quarterly Report on Form 10-Q are an integral
part of these condensed consolidated financial statements
C2 GLOBAL TECHNOLOGIES INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(In thousands, except per Three Months Ended Nine Months Ended
share amounts) September 30, September 30,
-------------------- ---------------------
2008 2007 2008 2007
-------- ---------- --------- ----------
Revenue $ 9,500 $ - $ 17,625 $ -
Operating costs and expenses:
Patent licensing 6,097 - 10,589 -
Selling, general and
administrative 312 318 868 911
Depreciation and amortization 5 5 15 15
-------- ---------- --------- ----------
Total operating costs and
expenses 6,414 323 11,472 926
-------- ---------- --------- ----------
Operating income (loss) 3,086 (323) 6,153 (926)
-------- ---------- --------- ----------
Other income (expense):
Other income (expense) 3 3 8 (289)
Interest expense - (52) (43) (147)
-------- ---------- --------- ----------
Total other income (expense) 3 (49) (35) (436)
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Income (loss) from continuing
operations before income
taxes and earnings (loss) of
equity accounted investments 3,089 (372) 6,118 (1,362)
Income tax expense (recovery) (936) - (6) -
Earnings (loss) of equity
accounted investments,
(net of $0 tax) (10) - (3) -
-------- ---------- --------- ----------
Income (loss) from continuing
operations 4,015 (372) 6,121 (1,362)
Loss from discontinued
operations (net of $0 tax) (3) (3) (9) (23)
-------- ---------- --------- ----------
Net income (loss) $ 4,012 $ (375) $ 6,112 $ (1,385)
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-------- ---------- --------- ----------
Weighted average common shares
outstanding 22,745 23,095 22,961 23,095
Weighted average preferred
shares outstanding 1 1 1 1
Net income(loss) per share:
Common shares $ 0.18 $ (0.02) $ 0.27 $ (0.06)
Preferred shares $ 7.05 $ N/A $ 10.65 $ N/A
The notes contained in our Quarterly Report on Form 10-Q are an integral
part of these condensed consolidated financial statementsContact: Contacts:
C2 Global Technologies Inc.
Stephen A. Weintraub
Executive Vice President, Secretary & CFO
(416) 866-3058
Email: sweintraub@c-2technologies.com
Website: http://www.c-2technologies.com
Source: C2 Global Technologies Inc.
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