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Competitive Tech: Reports Fiscal 3rd Quarter
For Immediate Release:
COMPETITIVE TECHNOLOGIES, INC. REPORTS
THIRD QUARTER NET INCOME OF $580,100, $0.09 PER SHARE
Net Income and Operating Income for First Nine Months of Fiscal Year
Eighth Consecutive Quarter of Increased Revenues over Prior Year's Quarter
Fairfield, CT - (June 14, 2000) - Competitive Technologies, Inc. (AMEX:
CTT) announced today its third fiscal quarter net income for the three
and nine months ended April 30, 2000.
Net income of $580,100, $0.09 per share, for the third quarter of fiscal
2000 was $170,837 higher than net income of $409,263, $0.07 per share,
for the third quarter of fiscal 1999. CTT's net income of $867,759,
$0.14 per share, for the first nine months of fiscal 2000 was $535,110
higher than its net income of $332,649, $0.06 per share, for the first
nine months of fiscal 1999.
Operating income of $456,165 for the third quarter of fiscal 2000 was
$73,652 higher than operating income of $382,513 for the third quarter
of fiscal 1999. CTT's operating income of $515,928 for the first nine
months of fiscal 2000 was $255,873 higher than its operating income of
$260,055 for the first nine months of fiscal 1999.
Revenues for the third quarter of fiscal 2000 increased $106,504 (9%) to
$1,299,010 compared with $1,192,506 in the third quarter of fiscal 1999.
Revenues for the first nine months of fiscal 2000 increased $410,812
(16%) to $3,015,906 compared with $2,605,094 for the first nine months
of fiscal 1999. Revenues in the third quarter and nine months ended
April 30, 2000 included a royalty settlement of $736,375 which reflects
the estimated fair value of 2,945,500 shares of common stock of NTRU
Cryptos Inc. that CTT received in exchange for reducing its royalty
participation.
Revenues for the third quarter of fiscal 2000 include approximately
$168,000 from a homocysteine licensee's increase in its previously
estimated royalties for the period from 1995 through 1999. Revenues for
the third quarter of fiscal 1999 included approximately $542,000 from a
Vitamin B12 assay licensee's increase in its previously estimated
royalties for the period from July 1993 through July 1998 and $189,000
from a second milestone payment toward a paid-up license on the
encryption technology.
Revenues for the nine months of fiscal 2000 include an increase of
approximately $369,000 in retained royalty revenues on the gallium
arsenide semiconductor inventions, which include laser diode
applications, as compared with the same nine month period of fiscal 1999
and approximately $168,000 from a homocysteine licensee's change in its
previously estimated royalties for the period from 1995 through 1999.
Revenues for the first nine months of fiscal 1999 included approximately
$542,000 from a Vitamin B12 assay licensee's change in its previously
estimated royalties for the period from July 1993 through July 1998 and
$472,500 from milestone payments toward a paid-up license on the
encryption technology.
Frank R. McPike, Jr., President of CTT, commented, "We continue to make
progress building shareholder value. In April, we completed two
transactions that we expect to create long-term value for our Company.
We successfully negotiated to obtain approximately 10% of the equity of
NTRU Cryptosystems, Inc. with pre-emptive rights to maintain our 10%
interest up to an IPO while retaining a small royalty interest, and we
recorded approximately $736,000 revenue related to this transaction.
Concurrently NTRU rec eived an $11 million equity investment from a
group of investors led by Greylock, a private venture capital firm, and
Sony Corporation. We also participated in an $8 million round of
financing in which we invested $500,000 to acquire 500,000 shares of
preferred stock of Micro-ASI, Inc. and warrants to purchase an
additional 300,000 shares. These two transactions continue our acorning
process, acquiring equity interests in companies we believe have
significant gr owth potential. Capital appreciation is an important
component of CTT's growth strategy."
Mr. McPike went on to say, "We continue to demonstrate progress by
reporting both operating income and net income in five of the last six
quarters. We continue to license our existing portfolio, add new
technologies to our pipeline and evaluate enforcement actions. We also
continue to evaluate opportunities to accelerate growth through
synergistic acquisitions."
About Competitive Technologies, Inc.
Competitive Technologies is a global leader in identifying, developing
and commercializing innovative life sciences, physical sciences and
digital technologies. CTT's ACORN services enable the transition from
concept to commercial reality. Competitive Technologies' specialized
expertise and experience make it a valuable partner for inventors,
companies and universities of all sizes. CTT has been responsible for
closing hundreds of licensing agreements. CTT clients include: NTRU
Cryptosystems, Inc., Luce nt 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.
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 Nine Months ended
April 30, April 30,
2000 1999 2000 1999
Revenues:
Retained royalties $ 553,402 $1,179,813 $ 2,116,361 $ 2,461,522
Retained royalty
settlement 736,375 -- 736,375 --
Revenues under
service contracts 9,233 12,693 163,170 143,572
Total revenues 1,299,010 1,192,506 3,015,906 2,605,094
Costs of technology
management services 496,093 518,197 1,572,413 1,409,098
General and administration
expenses 346,752 291,796 927,565 865,941
Restructuring charge -- -- -- 70,000
Total operating expenses 842,845 809,993 2,499,978 2,345,039
Operating income 456,165 382,513 515,928 260,055
Net income $ 580,100 $ 409,263 $ 867,759 $ 332,649
Net income per share,
basic and diluted $ 0.09 $ 0.07 $ 0.14 $ 0.06
Weighted average number of
common shares outstanding:
Basic 6,120,254 5,981,352 6,043,586 5,982,552
Diluted 6,369,160 6,020,127 6,145,690 6,006,042
End