Tut's CoSine Deal Drags On

Tut Systems Inc. (Nasdaq: TUTS) has missed its March 31 target for completing its acquisition of CoSine Communications Inc. (Nasdaq: COSN) as San Jose, Calif.-based Tut completes paperwork and meets with shareholders.

Terry Gibson, CoSines CEO, tells NDCF that his company’s financials prompted the change in schedule. ”It had to do with the timing of the filing of our annual accounts -- we needed to file our 10-K,” he says.

So, when is the deal likely to be completed? “It will depend on the timing of the filing of our final S-4 and the related shareholder meetings,” he adds. “We certainly expect the shareholder meetings to happen in the second quarter.”

The deal has not been without controversy, although Gibson refused to comment on the court challenge to the merger which was filed earlier this year (see CoSine Deal Challenged in Court).

Yesterday, CoSine released the aforementioned results, posting annual revenue of $9.7 million and a net loss of $37.3 million, or $3.70 per share. The previous year’s revenue figure was $14.6 million and a net loss of $34.9 million, or $3.57 per share (see CoSine Reports Q4, 2004 Results)