Cogent Systems Files 10-Q for Third Quarter of 2004

Cogent Systems (Nasdaq: COGT) today filed its Quarterly Report on Form 10-Q in which it reported that net income on a GAAP basis for the third quarter of 2004 was $20.4 million, or $0.29 per diluted share. In its November 1, 2004 earnings release, the Company had understated GAAP net income for the third quarter by $0.01 per diluted share or $643,000, due to an overstatement of amortization of deferred stock-based compensation expense. Cogent also reported that net income on a GAAP basis for the nine months ended September 30, 2004 was $32.7 million, or $0.47 per diluted share. The previously disclosed results for the nine months ended September 30, 2004 understated GAAP net income by $374,000 due to an overstatement of amortization of deferred stock-based compensation.

These adjustments have no impact on Cogent's cash flows or on the previously reported non-GAAP results for either period.

Additional information regarding Cogent's historical results is available in the Company's Quarterly Report on Form 10-Q filed earlier today.