C2 Global Technologies Inc.
OTC Bulletin Board : COBT

C2 Global Technologies Inc.

May 06, 2008 16:52 ET

C2 Global Technologies Inc. Reports 2008 First Quarter Results

TORONTO, ONTARIO--(Marketwire - May 6, 2008) - C2 Global Technologies Inc. ("C2" or the "Company") (OTCBB:COBT) today reported its financial results for the first quarter ended March 31, 2008. All amounts are stated in US dollars.

The Company had net income of $1.8 million or $0.08 per common share, basic and diluted, for the first quarter of 2008, compared to a net loss of $0.6 million or $0.03 per common share, basic and diluted, for the first quarter of 2007.

For the first quarter of 2008 the Company's revenue from continuing operations was $6.2 million, compared to $0 for the first quarter of 2007. The revenue is from settlement and license agreements that the Company entered into in February 2008 with AT&T, Inc. and Verizon Communications, Inc. with respect to the Company's intellectual property.

"We are extremely pleased with the success achieved in licensing our patents to companies with the stature of AT&T and Verizon. We will 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 March 31, 2008, filed with the SEC on May 6, 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. 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 share March 31, December 31,
amounts) 2008 2007
----------------------------------------- -------------------------

(unaudited)

ASSETS
Current assets:
Cash and cash equivalents $ 471 $ 67
Deferred income tax asset 79 1,000
Other current assets 255 17
-------------------------
Total current assets 805 1,084
Other assets:
Intangible assets, net 15 20
Goodwill 173 173
Investments 518 519
-------------------------
Total assets $ 1,511 $ 1,796
-------------------------
-------------------------

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)

Current liabilities:
Accounts payable and accrued liabilities $ 634 $ 402
Notes payable to a related party - 2,335
-------------------------
Total liabilities 634 2,737
-------------------------

Stockholders' equity (deficit):
Preferred stock, $10.00 par value, authorized
10,000,000 shares; issued and outstanding
603 shares at March 31, 2008 and 607 shares at
December 31, 2007; liquidation
preference of $603 at March 31, 2008 and $607 at
December 31, 2007 6 6
Common stock, $0.01 par value, authorized
300,000,000 shares; issued and outstanding
23,095,170 shares at March 31, 2008 and
23,095,010 shares at December 31, 2007 231 231
Additional paid-in capital 274,695 274,672
Accumulated deficit (274,055) (275,850)
-------------------------
Total stockholders' equity (deficit) 877 (941)
-------------------------
Total liabilities and stockholders' equity
(deficit) $ 1,511 $ 1,796
-------------------------
-------------------------

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) 2008 2007
---------------------------------------- ----------------------

Revenue:
Patent licensing $ 6,225 $ -
----------------------

Operating costs and expenses:
Patent licensing 3,184 -
Selling, general and administrative 276 279
Depreciation and amortization 5 5
----------------------
Total operating costs and expenses 3,465 284
----------------------
Operating income (loss) 2,760 (284)
----------------------
Other income (expense):
Interest expense (43) (48)
Other income (expense) (1) (293)
----------------------
Total other expense (44) (341)
----------------------
Income (loss) from continuing operations before
income taxes 2,716 (625)
Income tax expense 921 -
----------------------
Income (loss) from continuing operations 1,795 (625)
----------------------
Income (loss) from discontinued operations (net of
$0 tax) - (2)
----------------------
Net income (loss) $ 1,795 $ (627)
----------------------
----------------------

Weighted average common shares outstanding 23,095 23,094
Weighted average preferred shares outstanding 1 1

Net income (loss) per share:
Common shares $ 0.08 $ (0.03)
Preferred shares $ 3.11 $ N/A

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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