Tuesday, September 7, 2004

CoSine to Wind Down Operations

CoSine Communications has initiated actions to lay-off most of its employees this month. A limited team of employees will be retained to provide customer support. The company said the decision to wind down its operations follows an extensive evaluation of strategic alternatives. CoSine's management team and its Board of Directors concluded that "maintaining the company's existing employee headcount was not necessary for any of the strategic alternatives currently under consideration and the ongoing employee-related expenditures could potentially decrease total stockholder value."

CoSine's IPSX Service Processing Switch with enhanced IPSG+ technology provide carriers with advanced managed IP VPN services (both IPSec and MPLS) and managed firewall services. In addition, the CoSine solution also provides B- RAS capabilities to deliver advanced broadband services and virtualized multicast services. http://www.cosinecom.com/

  • CoSine Communications was founded in 1998 and is based in Redwood City, California. The company completed its IPO in September 2000, selling 10 million shares at $23 per share.

  • For Q2 2004, CoSine reported revenue of $2.6 million and a net loss of $9.7 million, or $0.96 per share, as compared to revenue of $4.5 million and a net loss of $7.4 million or $0.74 per share for the quarter ended March 31, 2004 . At the end of the quarter, the company held about $44 million in cash and short term investments.

  • In late 2002, Wyndcrest Holdings LLC made public a proposal to sell off CoSine's technology and shut down the company so as to preserve shareholder value.

  • In June 2004, CoSine announced a strategic reseller agreement with Fujitsu Network Communications.


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