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Competitive Tech: Reports 2nd Fiscal Quarter
For Immediate Release:
COMPETITIVE TECHNOLOGIES, INC. REPORTS
SECOND QUARTER NET INCOME OF $428,705, $0.07 PER SHARE
Net Income and Operating Income for First Six Months of Fiscal Year
Seventh Consecutive Quarter of Increased Revenues over Prior Year's Quarter
Fairfield, CT - (March 14, 2000) - Competitive Technologies, Inc. (AMEX: CTT)
announced today its second fiscal quarter results for the three and six
month ended January 31, 2000.
Net income of $428,725, $0.07 per share, for the second quarter of
fiscal 2000 was $189,891 higher than net income of $238,834, $0.04 per
share, for the second quarter of fiscal 1999. CTT's net income of $287,659,
$0.05 per share, for the first six months of fiscal 2000 was $364,273 higher
than its net loss of $76,614 ($0.01 per share) for the first six months of
fiscal 1999.
Operating income of $281,683 for the second quarter of fiscal 2000 was
$50,235 higher than operating income of $231,448 for the second quarter of
fiscal 1999. CTT's operating income of $59,763 for the first six months of
fiscal 2000 was $182,221 higher than its operating loss of $122,458 for the
first six months of fiscal 1999.
Revenues for the second quarter of fiscal 2000 increased $152,795
(15%) to $1,146,069 compared with $993,274 in the second quarter of fiscal
1999. Revenues for the first six months of fiscal 2000 increased $304,308
(22%) to $1,716,896 compared with $1,412,588 for the first six months of
fiscal 1999. Retained royalties of $1,118,229 for the second quarter of
fiscal 2000 were $152,775 (16%) higher than $965,454 in the second quarter
of fiscal 1999. Retained royalties of $1,562,959 for the first six months
of fiscal 2000 were $281,250 (22%) higher than $1,281,709 in the first six
months of fiscal 1999.
Total operating expenses for the second quarter of fiscal 2000 were
$864,386; which was $102,560 (13%) higher than in the second quarter of
fiscal 1999. Total operating expenses for the first six months of fiscal
2000 were $1,657,133; which was $122,087 (8%) higher than in the first six
months of fiscal 1999. Total operating expenses of $1,535,046 in the first
six months of fiscal 1999 included $70,000 for restructuring charges. CTT
increased its technology commercialization and contract services activities
compared to the previous year. As a result, costs of technology management
services for the second quarter and first six months of fiscal 2000 were
$51,294 (11%) and 185,419 (21%) higher, respectively, than in the comparable
periods of fiscal 1999. General and administration expenses were $51,266
(17%) higher than in the second quarter of fiscal 1999 but only $6,668 (1%)
higher than in first six months of fiscal 1999 and reflect higher
shareholder expenses, including costs related to the Company's annual
meeting of stockholders.
Frank R. McPike, Jr., President of CTT said, "We are pleased to report
the seventh consecutive quarter that CTT has realized higher revenues than
in the prior year's comparable quarter. Retained royalties from the gallium
arsenide semiconductor inventions, which include laser diode applications,
were approximately $363,000 (166%) higher than in the second quarter of
fiscal 1999. This is particularly encouraging since more than $350,000 of
this increase is based on higher sales of licensed products. Royalty
revenues this quarter increased despite approximately $378,000 of non-
recurring royalty revenues in the second quarter of fiscal 1999 and a
homocysteine sublicensee's withholding royalties on certain tests since the
summer of 1998, which we are currently litigating."
Mr. McPike continued, "We have reported both operating income and net
income in four of the last five quarters. In addition, for the first six
months of fiscal 2000 we have reported both operating income and net income.
Our efforts in recent years are bearing fruit. We continue to mine our
existing technology portfolio and add new technologies to our pipeline. We
are also considering opportunities to accelerate growth by acquiring
synergistic businesses and investing in developing companies."
About Competitive Technologies, Inc.
Competitive Technologies is a global leader in identifying, developing and
commercializing innovative life sciences, physical sciences and digital
technologies. Competitive Technologies' specialized expertise and
experience make it a valuable partner for companies and universities of all
sizes. CTT has been responsible for closing hundreds of licensing
agreements. CTT clients include: SONY, Lucent Technologies, Matsushita
Electric Industrial and Ribozyme Pharmaceuticals, Inc. Competitive
Technologies, Inc. is based in Fairfield, Connecticut and has affiliates in
Osaka, Japan and London, England. For more information about CTT, see
www.competitivetech.net.
Statements about the Company's future expectations, including development
and regulatory plans, and all other statements in this document other than
historical facts are "forward-looking statements" within the meaning of
applicable Federal Securities Laws and are not guarantees of future
performance. These statements involve risks and uncertainties related to
market acceptance of and competition for the Company's licensed technologies
and other risks and uncertainties inherent in CTT's business, including
those set forth in Item 1 of the Company's Form 10-K for the year ended July
31, 1999 and other factors that may be described in CTT's filings with the
SEC, and are subject to change at any time. The Company's actual results
could differ materially from these forward-looking statements. The Company
undertakes no obligation to update publicly any forward-looking statement.
For further information, contact:
Johnnie D. Johnson
Strategic IR, Inc.
Phone (212) 754-6565
Fax (212) 754-4333
jdjohnson@strategic-ir.com
COMPETITIVE TECHNOLOGIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(Unaudited)
Three Months ended Six Months ended
January 31, January 31,
2000 1999 2000 1999
Revenues:
Retained royalties $1,118,229 $ 965,454 $ 1,562,959 $ 1,281,709
Revenues under
service contracts 27,840 27,820 153,937 130,879
Total revenues 1,146,069 993,274 1,716,896 1,412,588
Costs of technology
management services 512,236 460,942 1,076,320 890,901
General and administration
expenses 352,150 300,884 580,813 574,145
Restructuring charge -- -- -- 70,000
Total operating expenses 864,386 761,826 1,657,133 1,535,046
Operating income (loss) 281,683 231,448 59,763 (122,458)
Net income (loss) $ 428,725 $ 238,834 $ 287,659 $ (76,614)
Net income (loss) per share,
basic and diluted $ 0.07 $ 0.04 $ 0.05 $ (0.01)
Weighted average number of
common shares outstanding:
Basic 6,009,531 5,975,286 6,006,086 5,983,132
Diluted 6,039,908 6,006,466 6,036,385 5,983,132
End.