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
Safe Harbor 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.
CONSOLIDATED STATEMENT OF OPERATIONS
(in thousands, except per share data)
Three Months ended Six months ended
June 30, June 30,
2008 2007 2008 2007
Revenue:
Product $- $- $- $-
Service - - - -
Total revenue - - - -
Cost of revenue - - - -
Gross profit (loss) - - - -
Operating expenses:
Research and development - - - -
Sales and marketing - - - -
General and administrative 145 170 322 367
Total operating expenses 145 170 322 367
Loss from operations (145) (170) (322) (367)
Interest income and other 167 292 396 583
Income before taxes 22 122 74 216
Income tax provision - - - -
Net income $22 $122 $74 $216
Basic net income per share $0.00 $0.01 $0.01 $0.02
Diluted net income per share $0.00 $0.01 $0.01 $0.02
Shares used in computing basic and
diluted net income per share
Basic 10,091 10,091 10,091 10,091
Diluted 10,094 10,122 10,091 10,122
CoSine Communications, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
June 30, December 31,
2008 2007
(Unaudited) (1)
ASSETS
Current assets:
Cash and cash equivalents $9,891 $12,709
Short-term investments 13,306 10,410
Other receivables 72 73
Prepaid expenses and other current assets 22 36
Total current assets 23,291 23,228
Long-term deposits 3 3
$23,294 $23,231
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $268 $204
Other accrued liabilities 18 97
Total current liabilities 286 301
Stockholders' equity:
Common stock 1 1
Additional paid-in capital 539,042 539,026
Accumulated other comprehensive income 3 15
Accumulated deficit (516,038) (516,112)
Total stockholders' equity 23,008 22,930
$23,294 $23,231
1. Amounts are derived from the December 31, 2007 audited financial
statements.
SOURCE CoSine Communications, Inc.
