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CoSine: The Big Sell-Off?

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News Analysis
Light Reading
7/30/2004

It looks as if CoSine Communications Inc. (Nasdaq: COSN) could be on the block after a poor second quarter.

The company reported revenue of $2.6 million and a net loss of $9.7 million, or 96 cents per share, in its second-quarter results. Revenue for the same quarter last year was $6 million, and the net loss was $7.7 million, or 79 cents per share. CoSine executives said on today's earnings conference call that they are “exploring various strategic alternatives,” which raises the possibility that all, or part, of the company will now be sold off.

In what must be one of the shortest calls of this earnings season, the Redwood City, Calif.-based firm also said that it has retained Broadview International as its financial advisor.

For more details, head over to our sister site, the Next-Gen Data Center Forum.

— James Rogers, Site Editor, Next-gen Data Center Forum

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edgehead
edgehead
12/5/2012 | 1:24:24 AM
re: CoSine: The Big Sell-Off?
Actually, CoSine would probably be a sweet deal for the Ciscos, Junipers and Tellabs of the world, for a couple reasons

*All of them need a better B-RAS/video distribution/triple play strategy and CoSine has a great technology for this...
*CoSine has got a decent customer base with serious services deployed on it - Sprint, KT, NTT, Equant, etc.
*CoSine has millions in cash and little debt
*They will probably go for a good price...

My 2 cents...
lr_monger
lr_monger
12/5/2012 | 1:24:23 AM
re: CoSine: The Big Sell-Off?
Dude, you must be smoking crack.

All of CoSine's customers are pulling the CoSine boxes out of their networks and just scraping them. This is not a secret, everybody knows it.

monger
SemiconductorMan
SemiconductorMan
12/5/2012 | 1:24:21 AM
re: CoSine: The Big Sell-Off?
"All of CoSine's customers are pulling the CoSine boxes out of their networks and just scraping them. "

What are they scraping them with, their protractors?
Upside_again
Upside_again
12/5/2012 | 1:24:18 AM
re: CoSine: The Big Sell-Off?
The list of Springtide, Celox, Corona, Cresent, Ennovate, Allegro, are all an examples of dead market players. This one just took alot longer and wasted alot more money.


Any others left?
Bitman
Bitman
12/5/2012 | 1:24:13 AM
re: CoSine: The Big Sell-Off?
There is Shasta left which has a pretty decent install base and it seems as if NorTel is attempting to breathe some life back into the product.

edgehead
edgehead
12/5/2012 | 1:24:11 AM
re: CoSine: The Big Sell-Off?
That is most definitely NOT the case...Dude. There are number of services at places like Sprint and others that are currently running on them. Granted, they need to get some development on features, etc., but they work. Customers is customers and if a acquirer can put some dough in R&D, well, I would say that's worth a customer like Sprint or NTT.
laserbrain2
laserbrain2
12/5/2012 | 1:24:10 AM
re: CoSine: The Big Sell-Off?
I could never figure out why these jokers didn't go and buy some revenue. (a la Level 3, who bought that software distributor and saved their ass.) They had $100mil in cash. They did some half-hearted casting about for startups, but nada. Just continued to burn it away.

They could have bought any number of appliance vendors, software outfits, hell even service companies and double or tripled revenue, even added cash. A lot of cheap SSL VPN companies went last year they could have added a coupla mil to the top line, but it wouldn't even have to be related to their core biz.

Alas now they're down to nearly half that cash. All is lost, all is lost.
issey
issey
12/5/2012 | 1:24:09 AM
re: CoSine: The Big Sell-Off?
CoSIne has very, very few installs at NTT. They have much much more Unispheres (Now Juniper E-series). Actually, I wouldn't be suprised if no cosines are left at NTT now.
Upside_again
Upside_again
12/5/2012 | 1:23:46 AM
re: CoSine: The Big Sell-Off?
Sing this:

"i don't wanna work -I just wanna bang on the baby-sitter all day"

Good job boyz !
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