BOSTON, Feb. 21, 2006 (PRIMEZONE) -- Technest Holdings, Inc. www.technestholdings.com (OTCBB:TCNH), a defense and homeland security company transforming advanced laboratory technology into real-world products, announced today its operating results for the company's fiscal second quarter ended December 31, 2005.
Revenue for the six months ended December 31, 2005 was $37,285,917. Revenue for the same period in 2004 is not comparable as Technest Holdings, Inc. had no operations. Revenue for the three months ended December 31, 2005 was $18,289,576.
The operating loss for the six months ended December 31, 2005 was $284,011. The operating loss for the same period in 2004 was $99,031. The operating loss for the three months ended December 31, 2005 was $220,943. The operating loss for the same period in 2004 was $7,499. The operating loss for the six month period ended December 31, 2005 included non-cash charges for depreciation and amortization of intangible assets of $1,072,615.
The net loss attributable to common shareholders for the six month period ended December 31, 2005 was $1,796,653 or a loss of $0.12 per share compared to a net loss of $106,721 or $0.79 per share for the corresponding period in 2004.
The net loss attributable to common shareholders for the six month period ended December 31, 2005 was affected by interest payments. Total interest payments for the six months ended December 31, 2005 was $1,595,820. Of that amount $1,150,000 was incurred as non cash interest expense related to failure to promptly file a registration statement. During the period, the weighted average number of shares outstanding increased to 14,719,365 from 135,495 for the prior year period.
About Technest Holdings, Inc.
Technest Holdings, Inc. (OTCBB:TCNH) is a provider of: advanced remote sensor systems, chemical detectors, intelligent surveillance and advanced 3D imaging technology solutions to the defense and homeland security marketplaces. Technest is committed to setting next-generation standards in defense and security through the provision of innovative emerging technologies and expert services. Technest's solutions support military, law enforcement and homeland security personnel. Through strategic development, Technest focuses on the creation of dual-use technology and products with applications in both the defense market and civilian homeland security and law enforcement fields.
"Forward-Looking Statements"
Investors are cautioned that certain statements contained in this press release as well as some statements in periodic press releases and some oral statements of Technest Holdings Inc. officers and directors during presentations about Technest Holdings, are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Forward-looking statements include statements which are predictive in nature, which depend upon or refer to future events or conditions, which include words such as "expects," "anticipates," "intends," "plans," "believes," "estimates," or similar expressions. In addition, any statements concerning future financial performance (including future revenues, earnings or growth rates), ongoing business strategies or prospects, and possible future actions, which may be provided by management, are also forward-looking statements as defined by the Act. Some of the factors that could significantly impact the forward-looking statements in this press release include, but are not limited to: a reduction in order rates from the Army's Night Vision and Electronic Surveillance Directorate, insufficient cash flow to continue to fund the development and marketing of the Company's products and technology; a rejection of the Company's products and technologies by the marketplace, and; disputes as to the Company's intellectual property rights. Forward-looking statements are based upon current expectations and projections about future events and are subject to risks, uncertainties, and assumptions about Technest Holdings, its products, economic and market factors and the industries in which Technest Holdings does business, among other things. These statements are not guarantees of future performance and Technest Holdings has no specific intention to update these statements. More detailed information about those factors is contained in Technest Holdings filings with the Securities and Exchange Commission. http://www.sec.gov/
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