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MOUNTLAKE TERRACE, Wash.,
Sept. 21 /PRNewswire-FirstCall/ -- Cognigen Networks, Inc. (OTC
Bulletin Board: CGNW - News), the Seattle area based Internet-
enabled marketer of communications services and certificated reseller,
today announced the audited financial results for the fiscal year ended
June 30, 2004. In its annual report on Form 10-KSB that it will file
with the SEC, Cognigen will report annual revenue of $10,735,099, a decrease
of 1.7% compared to FY 2003, when the Company realized revenue of
$10,916,272. Cash flows from operations for fiscal 2004 were $227,938,
compared to $113,085 for fiscal 2003. The Company recorded a loss in
income from operations of ($2,878,638) or a loss of approximately $.32
per share due primarily to a one-time non-cash write-off of goodwill
associated with the sale of its wholly owned subsidiary, Cognigen Switching
Technologies, and a one-time charge of $494,149 related to the
termination of its InTandem Funding Agreement. Complete details of
these transactions and full financial data will be able to be obtained
from Edgar Online and other similar sources in the Form 10-KSB report.
Cognigen's president and CEO,
Thomas S. Smith, commented, "Fiscal Year 2004 brought significant
changes in the Company's corporate structure. First, we concluded the
sale of Cognigen Switching Technologies as part of a cost containment
strategy that is producing savings of approximately $25,000 to $30,000
per month while maintaining the delivery of services at presale levels.
Second, we concluded the funding agreement with InTandem that resulted
in our acquisition of that company while containing our future funding
obligations. As a further reflection of Cognigen's program to
transition from vendor agency to reseller status, telecommunication
revenue increased $1,647,948 or 41% over the previous fiscal year while
marketing commissions revenue decreased by $1,837,829 or 27% less than
in FY 2003. While the overall lack of revenue growth is not acceptable,
it does reflect general conditions within our sector of marketing
telecommunication services. To counteract this trend, Cognigen has moved to
expand its proprietary customer base. Success in this endeavor can be
measured by the 136% increase in the number of proprietary customers
Cognigen gained in fiscal year 2004. The number of proprietary
customers grew from approximately 11,000 in FY 2003 to 26,000 as of
June 30, 2004."
Mr. Smith, concluded, "Cognigen's selling, general
and administrative expenses for FY 2004 decreased by $124,094 compared
to FY 2003, a 3% reduction." This trend is expected to continue with
the cost and expense reductions of approximately $20,000 per month over
and above the $25,000 to $30,000 per month created by the sale of Cognigen Switching
Technologies.
LimitedSystems LLC.
45 Rockefeller Plaza
50th & 5th Avenue
Manhattan, NY 10111
customerservice@limitedsystems-co.com
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