Exhibit 99.1
For additional information, contact
Investor Relations, (301) 419-7877
November 13, 2006 Email: info@spherix.com
SPHERIX REPORTS THIRD QUARTER EARNINGS
BELTSVILLE, MD, Spherix Incorporated (NASDAQ/SPEX) reported revenue of $7.3
million and $20.8 million for the three-months and nine-months ended September
30, 2006, up 8% over the same periods in 2005. The increase between years is the
result of a new government reservation contract, which the Company began
performing early in 2006. During the three- and nine-month periods, the
Company's R&D costs were $441,000 and $723,000, respectively; an increase of
$400,000 and $511,000, respectively, over the same periods of the prior year.
The increased expenditures resulted from the escalation of activity relating to
the Phase 3 clinical trial of Naturlose as a treatment for type 2 diabetes. A
range-finding study was successfully completed, and provided encouraging early
signs (see Spherix news release dated October 26, 2006). With the increase in
R&D expenditures between years, Company's net income decreased by $295,000 for
the quarter, but remained $256,000 above the prior year's net loss for the year
to date.
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
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2006 2005 2006 2005
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Revenue $ 7,252,000 $ 6,705,000 $ 20,757,000 $ 19,204,000
Operating expense 7,266,000 6,416,000 21,068,000 19,773,000
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Income (loss) from operations $ (14,000) $ 289,000 $ (311,000) $ (569,000)
Net income (loss) $ (10,000) $ 285,000 $ (304,000) $ (560,000)
Net income (loss) per share $ - $ 0.02 $ (0.02) $ (0.05)
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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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