COSINE COMMUNICATIONS, INC. 
By About CoSine Communications
CoSine Communications was founded in 1998 as a global telecommunications equipment supplier to empower service providers to deliver a compelling portfolio of managed, network-based IP and broadband services to consumers and business customers. CoSine ceased its customer service operations effective
SafeHarbor Warning
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This release contains forward-looking statements, which include, among others, statements concerning CoSine's expected financial performance, exploration of strategic alternatives, and business outlook, expected performance and developments. The company uses words such as "anticipate," "believe," "plan," "expect," "future," "intend" and similar expressions to identify forward-looking statements. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from those reflected in the forward-looking statements.
Factors that might cause such a difference include, but are not limited to, CoSine's ability to identify and effectuate desirable strategic acquisitions, the time and costs required to explore and investigate possible transactions and other corporate actions, management and board interest in and distraction due to exploring and investigating strategic alternatives, the reactions, either positive or negative, of investors, competitors, customers, employees and others to CoSine exploring and executing possible strategic acquisitions. A detailed discussion of these factors and other risks that affect CoSine's business is contained in its SEC filings, including its most recent reports on Form 10-K and Form 10-Q, particularly under the heading "Risk Factors." Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect management's opinions only as of the date hereof. CoSine undertakes no obligation to revise or publicly release the results of any revision to these forward-looking statements.
For additional information contact:
Terry Gibson
(408) 399-6494
E-mail: Terry.Gibson@Cosinecom.com
CoSine Communications, Inc.
STATEMENT OF OPERATIONS
(in thousands, except per share data)
Three months Twelve months
ended ended
December 31, December 31,
2008 2007 2008 2007
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Revenue:
Product $- $- $- $-
Service - - - -
---- ---- ---- ----
Total revenue - - - -
Cost of revenue - - -
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Gross profit (loss) - - - -
Operating expenses:
General and administrative 215 239 721 781
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Total operating expenses 215 239 721 781
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Loss from operations (215) (239) (721) (781)
Interest income and other 123 295 706 1,180
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Income (loss) before taxes (92) 56 (15) 399
Income tax provision - (17) - (17)
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Net income (loss) $(92) $73 $(15) $416
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Basic net income (loss) per share $(0.01) $0.01 $(0.00) $0.04
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Diluted net income (loss) per share $(0.01) $0.01 $(0.00) $0.04
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Shares used in computing basic and
diluted net income (loss) per share
Basic 10,091 10,091 10,091 10,091
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Diluted 10,091 10,098 10,091 10,115
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CoSine Communications, Inc.
BALANCE SHEETS
(in thousands)
December 31, December 31,
2008 2007 (1)
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ASSETS
Current assets:
Cash and cash equivalents $9,155 $12,709
Short-term investments 13,997 10,410
Interest receivable 96 73
Prepaid expenses and other current
assets 31 36
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Total current assets 23,279 23,228
Long-term deposits 3 3
-- --
$23,282 $23,231
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $207 $204
Other accrued liabilities 53 97
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Total current liabilities 260 301
Stockholders' equity:
Common stock 1 1
Additional paid-in capital 539,060 539,026
Accumulated other comprehensive
income 88 15
Accumulated deficit (516,127) (516,112)
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Total stockholders' equity 23,022 22,930
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$23,282 $23,231
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(1) Amounts are derived from the December 31, 2007 audited financial
statements.
SOURCE CoSine Communications, Inc.
