Mountlake Terrace, Washington, May 16/PRNewswire-First Call/ -- Cognigen Networks, Inc. (OTC Bulletin Board: CGNW- news), the Seattle area based Internet-enabled marketer of communications services and certificated reseller, announced its unaudited financial results for the three and nine months ended March 31, 2006 . The Company realized revenue of $2,519,496 for the three months ended March 31, 2006, compared to revenue of $3,010,170 for the same period in 2005. Revenue for the nine months ended March 31, 2006 was $7,855,396 compared to $ 8,674,882 for the same period in 2005. Net income decreased from $346,307 or $.04 per share for the quarter ended March 31, 2005, to a net loss of $149,655 or $.02 per share for the same period in 2006. Net loss for the nine months ended March 31, 2006, was $194,233 or $.03 per share compared to net income of $811,589 or $.09 per share for the same period in 2005. Net cash provided from operations for the nine months ended March 31, 2005, was $385,165 as opposed to cash used in operations of $54,855 for the same period in 2006.

Operating expenses for the quarter ended March 31, 2006 were $2,652,029, compared to operating expenses of $2,649,184 for the same quarter in 2005. Telecommunications expenses for the quarter decreased from $755,561 for the same quarter in 2005, to $$628,334.

Complete details of the full unaudited results and related financial information may be found in Cognigen’s quarterly report on Form 10-QSB which has been filed with the SEC and which may be accessed through Edgar Online or other sources.

Gary Cook, Cognigen’s CFO and acting president, commented on quarterly results, “ We are naturally disappointed with not having attained profitability during past quarter, however, we are somewhat encouraged to see the effect of certain cost cutting measures that have been implemented since the beginning of 2006. We have moved to adjust upwards the total commission payout to our agents so as to remain competitive in the marketplace. This has resulted in the recruitment of new agents who are proven producers. We have continued to trend upward in sales of wireless services and to make notable gains in the sale of new dedicated business accounts. These two areas of endeavor offer substantial promise for sustained growth. We have focused our efforts on improving product selections, pricing and cost structures for wireless, dedicated business services and VoIP.”

Since becoming a public company six years ago, Cognigen has served over 820,000 customers worldwide who have purchased telecommunication and personal technology services and products from the Company’s websites. Each of the approximately 134,000 persons, who currently are registered as Cognigen agents, has a website that is replicated from the main www.ld.net site. This extraordinary Internet presence contains millions of pages that have given Cognigen’s principal website an extraordinary presence in long distance telecommunication marketing .