Exhibit 99.1
Spherix Reports Third Quarter Results
BELTSVILLE, Md., Nov. 14 /PRNewswire-FirstCall/ -- Spherix Incorporated
(Nasdaq: SPEX), today reported a net loss of $115,000 ($0.01 per share) on
sales of $5.1 million and a net loss of $1.3 million ($0.11 per share) on
sales of $14.3 million for the three and nine months ended September 30, 2003,
respectively. Sales increased $259,000 (5%) and $2.2 million (18%) for the
three- and nine-month periods in comparison to those of the prior year.
The InfoSpherix Division's revenue increased $278,000 (6%) and $2.2
million (19%) for the three and nine months ended September 30, 2003, in
comparison to the same periods in the prior year, and the Division's operating
profits decreased $35,000 and increased $841,000 for the same periods. The
increased revenues between years resulted from several new contracts, which
began in the fourth quarter of 2002 and included a reservation contract, an
information services contract and a short-term commercial contract, which
concluded at the end of the first quarter of 2003. The Company recently won
three more state reservation contracts that will begin in the fourth quarter
of this year and the first quarter of following year. In addition, Spherix's
National Park Service contract and its Maryland Information Center contracts
have each been extended into 2004.
The BioSpherix Division's revenue decreased $19,000 (76%) and $59,000
(71%) for the three and nine months ended September 30, 2003, in comparison to
the same periods of the prior year, and the Division's operating losses
increased $194,000 and $776,000 for the same periods. The increased loss
results principally from costs associated with the ongoing arbitration with
Arla Foods, continued FlyCracker expenses, and increase in the costs for
marketing Naturlose.
Three Months Ended Nine Months Ended
September 30 September 30
2003 2002 2003 2002
Revenue $5,091,477 $4,832,470 $14,314,383 $12,125,147
Operating expense 5,207,226 4,718,937 15,588,434 13,464,338
Loss (income)
from operations ($115,749) $113,533 $(1,274,051) $(1,339,191)
Net (loss) income ($115,189) $137,096 $(1,254,652) $(1,273,334)
Net (loss) income
per share $(0.01) $0.01 $(0.11) $(0.11)
Thomas W. Gantt, President and CEO, stated, "Significant legal and
operating costs associated with the Arla arbitration and efforts to retain the
National Park Service contract were largely responsible for the year-to-date
losses. However, the recent favorable settlement of our dispute with Arla
(see Spherix's November 13, 2003 News Release), that stopped the high legal
fees for arbitration, and the winning of three state reservation contracts
this year, suggests improved profitability for Spherix in 2004."
Certain statements contained herein are "forward looking" statements as
defined in the Private Securities Litigation Reform Act of 1995. Because such
statements include risks and uncertainties, actual results may differ
materially from those expressed or implied. Factors that could cause actual
results to differ materially from those expressed or implied include, but are
not limited to, those discussed in filings by the Company with the Securities
and Exchange Commission, including the filing on Form 8-K made on March 3,
1999.
Under its motto, "A World of Solutions," Spherix's mission is to create
value and increase shareholder wealth through innovations that benefit our
clients and the human condition. Spherix offers innovations in information
technology, knowledge management, and biotechnology.
Spherix's Internet address is http://www.spherix.com.
SOURCE Spherix, Incorporated
-0- 11/14/2003
/CONTACT: Richard Levin of Spherix, Incorporated, +1-301-419-3900,
rlevin@spherix.com/
/Web site: http://www.spherix.com/
(SPEX)
CO: Spherix, Incorporated
ST: Maryland
IN: BIO MTC
SU: ERN