FAIRFIELD, Conn., Dec. 14, 2000 (PRIMEZONE) -- Competitive Technologies, Inc. (AMEX:CTT) announced today its fiscal first quarter results for the three months ended October 31, 2000.
Retained royalties of $462,669 for the first quarter of fiscal 2001 were $17,939 (4%) higher than retained royalties in the first quarter of fiscal 2000. Revenues under service contracts for the first quarter of fiscal 2001 were $909, which is $125,188 lower than the first quarter of fiscal 2000 that included revenues from two non-recurring service contracts. CTT has intensified its focus to only seek out service contracts where it sees the opportunity for an expanded relationship, whether an acorn investment, a license representation agreement, or both. In prior years, CTT performed a wide range of service contracts. Total revenues for the first quarter of fiscal 2001 of $463,578 were $107,249 (19%) lower than in the first quarter of fiscal 2000.
Total operating expenses for the first quarter of fiscal 2001 were $768,423. This was $24,324 (3%) lower than for the first quarter of fiscal 2000. Reductions in direct costs related to service contracts and in personnel and related expenses were partially offset by increases in patent litigation expenses and consultants' fees and expenses.
CTT's net loss of $185,140 ($0.03 per share) for the first quarter of fiscal 2001 was $44,074 higher than its net loss of $141,066 ($0.02 per share) in the first quarter of fiscal 2000. CTT's operating loss of $304,845 for the first quarter of fiscal 2001 was $82,925 higher than its operating loss of $221,920 for the first quarter of fiscal 2000.
Frank R. McPike, Jr., President and CEO of CTT, said, "Although this quarter was not profitable, we were pleased to see retained royalties increase over the prior year's first quarter, despite the fact that we are now engaged in legal proceedings to enforce our patent rights with respect to two technologies, homocysteine and endoscopic ligating instrument. These two technologies reported retained royalties in the first quarter of fiscal 2001 of $65,700 compared with $136,400 in the first quarter of fiscal 2000. Our operating expenses were 3% lower than in fiscal 2000. This reduction reflects fewer professional staff, offset by higher consulting and professional fees related to potential acorn investments as well as higher legal expenses. These legal expenses are related to both existing and pending litigation. While they are expensed as incurred, they are a required investment to insure patent compliance and accurate royalty payment."
Mr. McPike went on to say, "CTT's business is seasonal with the second and fourth quarters historically producing substantially higher retained royalties, recently related to the laser diode technology."
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 inventors, companies and universities of all sizes. CTT has been responsible for closing hundreds of licensing agreements. CTT clients and licensees include: Sony, Matsushita Electric Industrial, the University of Colorado, NTRU Cryptosystems, Inc., Palatin Technologies, Inc. and Ribozyme Pharmaceuticals, Inc. Competitive Technologies, Inc. is based in Fairfield, Connecticut and has affiliates in Osaka, Japan and London, England.
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, 2000 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.
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COMPETITIVE TECHNOLOGIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(Unaudited)
First Quarter Ended October 31,
2000 1999
Revenues:
Retained royalties $ 462,669 $ 444,730
Revenues under service contracts 909 126,097
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Total revenues 463,578 570,827
Total operating expense 768,423 792,747
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Operating loss (304,845) (221,920)
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Net loss $ (185,140) $ (141,066)
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Net loss per share:
Basic and diluted $ (0.03) $ (0.02)
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Weighted average number of
common shares outstanding:
Basic 6,179,313 6,002,640
Diluted 6,179,313 6,002,640
Other Financial Data
Cash and cash equivalents $ 1,235,485 $ 1,558,147
Short-term investments $ 6,329,373 $ 4,647,411
Royalties receivable $ 409,470 $ 496,303
Total assets $ 10,869,236 $ 8,436,095
Royalties payable $ 1,004,198 $ 882,494
Total liabilities $ 1,493,215 $ 1,388,400
Shareholders' equity $ 9,376,021 $ 7,047,695