C2 Global Technologies Inc.
OTC Bulletin Board : COBT

C2 Global Technologies Inc.

May 07, 2007 08:30 ET

C2 Global Technologies Inc. Reports 2007 First Quarter Results

TORONTO, ONTARIO--(CCNMatthews - May 7, 2007) - C2 Global Technologies Inc. ("C2" or the "Company") (OTCBB:COBT) today reported its financial results for the first quarter ended March 31, 2007. All amounts are stated in US dollars.

The Company had a loss from continuing operations of $0.6 million or $0.03 per share, basic and diluted, for the first quarter of 2007 compared to a loss of $2.7 million or $0.14 per share, basic and diluted, for the first quarter of 2006. The Company had a net loss of $0.6 million in the first quarter of 2007 compared to net income of $1.0 million in the first quarter of 2006. The net loss per common share in the first quarter of 2007 was $0.03, basic and diluted, compared to net income per common share of $0.05, basic and diluted, in the first quarter of 2006.

Significant developments in 2007 to date are:

- In January 2007, the Company received a Notice of Allowance from the United States Patent and Trademark Office with respect to its "Private IP Communication Network Architecture" patent application, which covers the delivery of telecommunication type services across a network using digital technology.

- On March 21 2007, the European Patent Office published its decision to grant C2 a European patent that is equivalent to its U.S. Patent No. 6,243,373.

- In April, a trial scheduling conference was held with respect to the Company's patent infringement lawsuit against AT&T, Inc., Verizon Communications, Inc., Qwest Communications International, Inc., Bellsouth Corporation, Sprint Nextel Corporation, Global Crossing Limited, and Level 3 Communications, Inc. August 4, 2008 was set as the trial date.

Please see the Company's Annual Report on Form 10-K for the year ended December 31, 2006, filed with the SEC on March 16, 2007, and the Company's Quarterly Report on Form 10-Q for the three months ended March 31, 2007, filed with the SEC on May 4, 2007, 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. 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 per March 31, December 31,
share amounts) 2007 2006
----------------------------------- ------------ ------------
(unaudited)
ASSETS

Current assets:
Cash and cash equivalents $ 3 $ 3
Other current assets 6 70
----------- --------------
Total current assets 9 73
Other assets:
Intangible assets, net 35 40
Goodwill 173 173
Investments 1,100 1,100
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Total assets $ 1,317 $ 1,386
----------- --------------
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LIABILITIES AND STOCKHOLDERS' DEFICIT

Current liabilities:
Accounts payable and accrued liabilities $ 510 $ 550
Convertible note payable, net of
unamortized discount - 1,299
Note payable to a related party 1,853 6
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Total liabilities 2,363 1,855
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Stockholders' deficit:
Preferred stock, $10.00 par value, authorized
10,000,000 shares; issued and outstanding
612 shares; liquidation preference of $612 at
March 31, 2007 and December 31, 2006 6 6
Common stock, $0.01 par value, authorized
300,000,000 shares; issued and outstanding
23,094,850 shares at March 31, 2007 and
23,084,850 shares at December 31, 2006 231 231
Additional paid-in capital 274,549 274,499
Accumulated deficit (275,832) (275,205)
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Total stockholders' deficit (1,046) (469)
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Total liabilities and stockholders' deficit $ 1,317 $ 1,386
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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)

Three Months Ended
March 31,
---------------------------
(In thousands, except per share amounts) 2007 2006
------------ --------------
Revenue $ - $ -
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Operating costs and expenses:
Selling, general and administrative 279 390
Depreciation and amortization 5 5
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Total operating costs and expenses 284 395
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Operating loss (284) (395)
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Other income (expense):
Interest expense (48) (2,342)
Other income (expense) (293) 3
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Total other expense (341) (2,339)
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Loss from continuing operations (625) (2,734)
Income (loss) from discontinued operations
(net of $0 tax) (2) 3,692
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Net income (loss) $ (627) $ 958
------------ --------------
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Basic and diluted weighted average shares
outstanding 23,094 19,237

Net income (loss) per common share - basic and
diluted:
Loss from continuing operations $ (0.03) $ (0.14)
Income from discontinued operations - 0.19
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Net income (loss) per common share $ (0.03) $ 0.05
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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


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