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.
Broadview describes itself as a leading global M&A advisor specializing in the IT, communications, healthcare technology, and media industries. According to the companys Website, the firm has announced 330 M&A transactions worth almost $54 billion in value.
Speaking after the results had been announced, Kevin Mitchell, directing analyst at Infonetics Research Inc. said that a sell-off could well be on the cards. One potential outcome is that a company likes some of the assets, and picks them up, he says.
