N@N

C2 Global Technologies Inc. Reports 2009 Third Quarter Results

^{Published on 2009-11-13 13:57:51 - Market Wire}
 

TORONTO, ONTARIO--(Marketwire - Nov. 13, 2009) - C2 Global Technologies Inc. ("C2" or the "Company") (OTCBB:COBT) today reported its financial results for the third quarter ended September 30, 2009. All amounts are stated in US dollars.

The Company had a net loss of $0.1 million or $0.01 per common share, basic and diluted, for the third quarter of 2009, compared to net income of $4.0 million or $0.18 per common share, basic and diluted, for the third quarter of 2008.

For the third quarter of 2009 the Company's revenue from continuing operations was $1.9 million, compared to $9.5 million for the third quarter of 2008. The 2009 revenue was earned by the Company's subsidiary, Counsel RB Capital, LLC ("Counsel RB"), which commenced operations in the second quarter of 2009, and in which the Company holds a 75% interest. The 2008 revenue was from a settlement and license agreement that the Company entered into in September 2008 with respect to the Company's intellectual property.

For the nine months ended September 30, 2009, the Company had a net loss of $0.4 million compared to net income of $6.1 million for the nine months ended September 30, 2008. The net loss per common share for the nine months ended September 30, 2009 was $0.02, basic and diluted, compared to net earnings per share of $0.27, basic and diluted, for the nine months ended September 30, 2008. The Company's operating revenue from continuing operations for the nine months ended September 30, 2009 was $6.0 million, as compared to $17.6 million for the nine months ended September 30, 2008. $5.0 million of the 2009 revenue was earned by Counsel RB, and the remaining $1.0 million was from a license agreement that the Company entered into in June 2009 with respect to the Company's intellectual property. All of the 2008 revenue was from settlement and license agreements with respect to the Company's intellectual property.

In August 2009 the Company's wholly-owned subsidiary, C2 Communications Technologies Inc., filed a patent infringement lawsuit against PAETEC Corporation, Matrix Telecom, Inc., Windstream Corporation, and Telephone and Data Systems, Inc. The complaint was filed in the United States District Court for the Eastern District of Oklahoma and alleges that the defendants' services and systems utilizing VoIP infringe the Company's U.S. Patent No. 6,243,373. The complaint seeks an injunction, monetary damages and costs.

"We are very pleased with the progress of Counsel RB during its first two quarters of operation", said Allan Silber, Chairman and CEO of C2. "As well, our investment in Polaroid Corporation has already shown a positive return, due to its successful efforts to promote the iconic Polaroid brand and capitalize on its intellectual property".

Please see the Company's Annual Report on Form 10-K for the year ended December 31, 2008, filed with the SEC on March 18, 2009, and the Company's Quarterly Report on Form 10-Q for the three months ended September 30, 2009, filed with the SEC on November 13, 2009, for further information.

About C2 Global Technologies Inc.

C2's primary business is the development and licensing of its patents, which include two foundational patents in VoIP technology. C2 is also involved in the acquisition and disposition of distressed and surplus assets through its interest in Counsel RB Capital. 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 September 30, December 31,
 amounts) 2009 2008
 ------------- --------------
 (unaudited)
 ASSETS

Current assets:
 Cash $ 157 $ 4,076
 Accounts receivable 1,779 -
 Other current assets 25 77
 Inventory 4,828 -
 Deferred income tax assets 453 875
 ------------- --------------
 Total current assets 7,242 5,028
Other assets:
 Goodwill 173 173
 Investments 2,867 242
 Deferred income tax assets 507 -
 ------------- --------------
 Total assets $ 10,789 $ 5,443
 ------------- --------------
 ------------- --------------

 LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
 Accounts payable and accrued liabilities $ 1,247 $ 472
 Debt payable to third parties 3,028 -
 Debt payable to a related party 1,702 -
 ------------- --------------
 Total liabilities 5,977 472
 ------------- --------------

Stockholders' equity:
 Preferred stock 6 6
 Common stock 227 227
 Additional paid-in capital 274,688 274,761
 Accumulated deficit (270,374) (270,023)
 ------------- --------------
 Stockholders' equity before non-controlling
 interest 4,547 4,971
 Non-controlling interest in subsidiary 265 -
 ------------- --------------
 Total equity 4,812 4,971
 ------------- --------------
 Total liabilities and stockholders' equity $ 10,789 $ 5,443
 ------------- --------------
 ------------- --------------


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 Nine Months Ended
 September 30, September 30,
(In thousands, except per share ------------------- -----------------
 amounts) 2009 2008 2009 2008
 --------- --------- ------- ---------

Revenue:
 Patent licensing $ - $ 9,500 $ 950 $ 17,625
 Asset trading 1,948 - 5,050 -
 --------- --------- ------- ---------
 Total revenue 1,948 9,500 6,000 17,625
 --------- --------- ------- ---------

Operating costs and expenses:
 Patent licensing 11 6,097 598 10,589
 Asset trading 917 -- 3,592 -
 Selling, general and administrative 966 312 2,061 868
 Depreciation and amortization - 5 - 15
 --------- --------- ------- ---------
 Total operating costs and expenses 1,894 6,414 6,251 11,472
 --------- --------- ------- ---------
Operating income (loss) 54 3,086 (251) 6,153
 --------- --------- ------- ---------
Other income (expense):
 Other income - 3 22 8
 Interest expense (123) - (186) (43)
 --------- --------- ------- ---------
 Total other income (expense) (123) 3 (164) (35)
 --------- --------- ------- ---------
Income (loss) from continuing
 operations before the
 undernoted (69) 3,089 (415) 6,118
Income tax expense (recovery) 65 (936) 12 (6)
Earnings of equity accounted
 investments (net of $0 tax) 77 (10) 97 (3)
 --------- --------- ------- ---------
Income (loss) from continuing
 operations (57) 4,015 (330) 6,121
Loss from discontinued operations
 (net of $0 tax) - (3) - (9)
 --------- --------- ------- ---------
Net income (loss) before
 non-controlling interest (57) 4,012 (330) 6,112
Net (income) loss attributable to
 non-controlling interest (64) - (21) -
 --------- --------- ------- ---------
Net income (loss) $ (121) $ 4,012 $ (351) $ 6,112
 --------- --------- ------- ---------
 --------- --------- ------- ---------

Weighted average common shares
 outstanding 22,718 22,745 22,725 22,961
Weighted average preferred shares
 outstanding 1 1 1 1

Net earnings (loss) per share -
 basic and diluted:
 Common shares $ (0.01) $ 0.18 $ (0.02) $ 0.27
 Preferred shares $ N/A $ 7.05 $ N/A $ 10.65


The notes contained in our Quarterly Report on Form 10-Q are an integral
part of these condensed consolidated financial statements.