Exhibit 99.1
For additional information, contact
Investor Relations, (301) 419-7877
March 30, 2006 Email: info@spherix.com
SPHERIX REPORTS 2005 FINANCIAL RESULTS AND REVENUE GROWTH
BELTSVILLE, MD, Spherix Incorporated (NASDAQ/SPEX) today reports that the
Company ended the year with an overall growth in revenue of 3%, from $22.3
million in 2004, to $23.0 million in 2005. The sales backlog between years
increased by $11.4 million (19%), bringing the Company's backlog to a new
recorded level of $72 million. The Company's net loss for the year ended
December 31, 2005, remained the same as 2004, at $2.8 million. Fourth quarter
revenue growth of $398,000 (12%), combined with the Company's cost cutting
efforts, resulted in an improvement of $472,000 to the bottom line between 2005
and 2004, for the same fourth quarter periods. The significant improvement in
the fourth quarter effectively off-set the increased loss in the first quarter
caused by the lower contribution margin on the new State of Maryland contract.
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
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2005 2004 2005 2004
------------ ------------ ------------ ------------
Revenue $ 3,841,586 $ 3,443,188 $ 23,045,657 $ 22,348,418
Operating expense 6,158,977 6,224,356 25,931,550 25,193,911
------------ ------------ ------------ ------------
Loss from operations $ (2,317,391) $ (2,781,168) $ (2,885,893) $ (2,845,493)
Net loss $ (2,288,290) $ (2,760,524) $ (2,848,748) $ (2,822,046)
Net loss per share $ (0.19) $ (0.23) $ (0.24) $ (0.24)
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.
Our Internet address is http://www.spherix.com.
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