Cistera Networks Reports Financial Results For Fiscal Year 2009 Third Quarter Ended December 31

PLANO, Texas--([ BUSINESS WIRE ])--Cistera Networks^® (OTCBB: CNWT) a leading provider of enterprise application communications platforms and engines for Internet Protocol (IP) Communications filed its 10-Q for the fiscal year 2009 third quarter ended December 31.

Q3 Fiscal 2009 Financial Results

Three month data as compared to the prior year period:

Revenues for the quarter totaled $1,072,487, an increase of $453,726 or 73%
Gross profit for the quarter was $737,882, or 69% of revenues, compared to $453,471 or 73% of revenues
Net loss for the quarter was $537,387 compared to $1,403,821
Net loss per share was ($0.03) compared to ($0.16)

Nine month data as compared to the prior year nine month period:

Revenues were $3,161,550, an increase of $969,220 or 44%
Gross profit for the period was $2,276,769, or 72% of revenues, compared to $1,570,537 or 72% of revenues
Net loss for the period was $4,058,853 compared to $3,356,131
Net loss per share was ($0.28), compared to ($0.39)

"In light of the current economic environment, we are pleased to deliver strong year-over-year growth of 73%," said Derek Downs, the company's president and CEO. "We remain very focused on delivering measurable impact for our customers by way of increased productivity and efficiencies, enhanced public and campus safety and immediate cost-savings."

Q3 2009 Event Highlights

Introduced Cistera ConvergenceServer5510 to meet the needs of environments with large numbers of users such as large contact centers, and the government, healthcare and higher education markets.
The company conducted a three-part field trial of the emergency alerting and notification capabilities of the Cistera ConvergenceServer 5510 as part of a pilot installation
In a "Text-to-Speech Broadcast," 7,168 devices received the broadcast within seven second
A "Live Broadcast" to 7,504 devices achieved 100% success in 46 seconds
A "Record and Broadcast to Analog Phones" achieved 100% success with all 3,799 analog phones receiving the broadcast in just 47 seconds
The company completed the installation of Quality Assurance and Compliance solutions for the San Antonio Water System

Conference Call

Management will host a conference call on Tuesday, February 17, 2009, at 3:30 PM Central / 1:30 PM Pacific Time to discuss these results. To participate, dial 1-800-762-8908 and provide conference ID 3989701. A replay of the call will be available from 6:30 PM Central Time on February 17 until 10:59 PM Central Time on February 24. To access the replay, dial 1-800-406-7325 and enter Conference ID 3989701.

About Cistera Networks, Inc.

Cistera Networks is a leading provider of enterprise application communications platforms and services. The company blends powerful application infrastructure with industry-specific business processes, to deliver the benefits of voice, video and data convergence to the user. Cistera's industry-leading platform delivers the most reliable, scalable and secure application services for IP-based network environments. Its broad portfolio of application services enables users to improve customer service and satisfaction, increase productivity and collaboration, improve responsiveness to critical incidents and to provide a safer environment.

Based on open standards and a proven server technology foundation, the award-winning Cistera ConvergenceServer™ has a single unified administration which delivers the lowest total cost of ownership in the industry. It enables customers to create robust and scalable environments that are flexible enough to adapt to their changing needs by scaling up to support from fewer than one hundred to thousands of users, and scaling out to support multiple sites, making it ideal for a broad range of organizations. For more information, please see [ www.cistera.com ].

This release may be deemed to contain forward-looking statements that are subject to the safe harbor provisions of the Private Litigation Reform Act of 1995. These forward-looking statements include, among other things, statements regarding future events and the future financial performance of Cistera Networks that involve risks and uncertainties. Readers are cautioned that these forward-looking statements are only predictions and may differ materially from actual future events or results. Readers are referred to the documents filed by Cistera Networks with the SEC, specifically the most recent reports on Form 10-K and 10-Q, each as it may be amended from time to time, which identify important risk factors that could cause actual results to differ from those contained in the forward-looking statements.

CISTERA NETWORKS, INC. & SUBSIDIARY CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

	December 31, 2008			March 31, 2008
Current assets
Cash and cash equivalents	$	110,684		$	125,007
Restricted cash		-			50,000
Accounts receivable, net		82,248			264,023
Inventory		74,142			187,960
Prepaid expenses		34,740			46,030
Total current assets		301,814			673,020

Property and equipment, net		365,286			355,411
Intangible assets, net		1,819,386			2,023,218
Total long-term assets		2,184,672			2,378,629

TOTAL ASSETS	$	2,486,486		$	3,051,649

Current liabilities
Accounts payable		516,145			550,305
Accrued liquidated damages		177,024			671,442
Accrued liabilities		1,174,035			1,076,360
Deferred revenue		809,715			971,474
Convertible promissory notes and other notes payable, net of discount		906,535			425,707
Total current liabilities		3,583,454			3,695,288

Convertible promissory notes – net of discount		-			1,666,019
Deferred revenue		180,359			225,917
Other long-term liabilities		67,266			285,470
Total long-term liabilities		247,625			2,177,406

Total liabilities		3,831,079			5,872,694

Stockholders' deficit		(1,344,593	)		(2,821,045	)

TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT	$	2,486,486		$	3,051,649

CISTERA NETWORKS, INC. & SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three months ended						Nine months ended
	December 31,						December 31,
	2008			2007			2008			2007

Revenues
Convergence solutions	$	712,340		$	377,112		$	2,247,809		$	1,496,256
Professional services		98,514			87,972			204,347			282,565
Support and maintenance		261,633			153,677			709.394			413,509
Total revenues		1,072,487			618,761			3,161,550			2,192,330

Cost of revenues
Convergence solutions		254,675			98,501			664,417			430,428
Professional services		55,680			43,314			148,680			126,490
Support and maintenance		24,250			23,475			71,684			64,875
Total cost of revenues		334,605			165,290			884,781			621,793

Gross Profit		737,882			453,471			2,276,769			1,570,537

Operating expenses
Sales and marketing		319,758			509,627			900,230			1,023,925
Software development		188,956			193,432			612,289			543,950
Engineering and support		172,923			200,409			579,323			426,126
General and administrative		338,210			404,999			1,098,827			949,004
Depreciation and amortization		103,538			88,442			302,368			253,315
Total operating expenses		1,123,385			1,396,909			3,493,037			3,196,320

Loss from operations		(385,503	)		(943,438	)		(1,216,268	)		(1,625,783	)

Other income (expense)
Interest expense, net		(42,966	)		(78,371	)		(190,607	)		(208,608	)
Non-cash charges associated with convertible notes and warrants		(108,918	)		(382,012	)		(2,651,978	)		(1,521,740	)
Total other income (expense)		(151,884	)		(460,383	)		(2,842,585	)		(1,730,348	)

Net loss	$	(537,387	)	$	(1,403,821	)	$	(4,058,853	)	$	(3,356,131	)

Basic & diluted net loss per share	$	(0.03	)	$	(0.16	)	$	(0.28	)	$	(0.39	)

Weighted average shares outstanding – basic and diluted		17,423,410			8,594,469			14,725,627			8,594,469

Contributing Sources

Market Wire

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Cistera Networks Reports Financial Results For Fiscal Year 2009 Third Quarter Ended December 31