Cellular Technical Services Announces 1996 Results.SEATTLE--(BUSINESS WIRE)--March 18, 1997-- Fourth Quarter And Full Year In Line With Preliminary Results Announced January 23, 1997 Company Affirms Positive Outlook For First Quarter 1997 Cellular Technical Services Company, Inc. (Nasdaq NM Symbol: CTSC CTSC Cathepsin CTSC Clinical and Translational Science Center (University of California at Davis) CTSC Chenega Technology Services Corporation CTSC Canadian Technical Security Conference (Burlington, ON, Canada) ) ("CTS (1) (Clear To Send) The RS-232 signal sent from the receiving station to the transmitting station that indicates it is ready to accept data. Contrast with RTS. (2) (Common Type System) The data typing used in . "), a leading provider of real-time 1. real-time - Describes an application which requires a program to respond to stimuli within some small upper limit of response time (typically milli- or microseconds). Process control at a chemical plant is the classic example. information management systems for the wireless communications wireless communications System using radio-frequency, infrared, microwave, or other types of electromagnetic or acoustic waves in place of wires, cables, or fibre optics to transmit signals or data. industry, today announced financial results for the three- and twelve-month periods ending December 31, 1996. Revenues for the fourth quarter ended December 31, 1996 increased 114 percent to $6.91 million compared with $3.23 million in the fourth quarter of 1995. The fourth quarter revenue increase was attributed to the deployment and recognition of more than 300 of the company's Blackbird blackbird, common name in North America of a perching bird allied to the bobolink, the meadow lark, the oriole, and the grackle and belonging to the family Icteridae. The European blackbird, Turdus merula, is a thrush. (r) Platform units under contracts with several major cellular service providers. During the fourth quarter the company deployed its Blackbird(r) Platform in more than 600 cell sites with operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. incurred for all the units deployed. However, due to contract accounting requirements, revenue and equipment cost was recognized on only about half of the units deployed during the quarter. Net loss for the quarter was ($2.91) million, or ($0.13) per share, compared with a net profit of $511,000, or $0.02 per share, in the same period last year. The net loss was attributed primarily to expenses associated with increased hiring to strengthen key operations, engineering, research and development, sales and sales support functions which the company believes necessary to support anticipated revenue growth and, to a lesser extent, the recognition of operating expenses associated with the approximately 300 Blackbird(r) Platform units for which revenue was not recognized as mentioned above. Revenues for full-year 1996 increased 73 percent to $20.9 million compared with $12.1 million in full-year 1995 due primarily to deployment of the company's Blackbird(r) Platform in approximately 1,300 cell sites in major markets throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . Net loss for the year was ($7.35) million, or ($0.33) per share compared with net earnings of $63,187, or $0.00 per share, last year. The net loss for 1996 was attributed to expenses associated with the initial roll-out and deployment of the Blackbird(r) Platform and the subsequent increases in sales and marketing, research and development and increased hiring to support anticipated growth. Bill Zollner, CTS President and Chief Operating Officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. , said: "Since the fourth quarter of last year, we have significantly improved our ability to deploy and support the Blackbird(r) Platform quickly and efficiently such that we are now receiving product acceptance from our customers and therefore recognizing revenue in a more timely fashion. We continue to work with our existing customers on reorders and expansion into new markets as well as adding new markets to our No Clone clone, group of organisms, all of which are descended from a single individual through asexual reproduction, as in a pure cell culture of bacteria. Except for changes in the hereditary material that come about by mutation, all members of a clone are genetically Zone(SM) roaming The ability to use a communications device such as a cellphone or PDA and be able to move from one cell or access point to another without losing the connection. fraud prevention service. We are also aggressively pursuing new business opportunities both domestically and internationally and we anticipate announcing new contracts throughout the year." Zollner also noted that "based upon improvements in our operations and the pace of business thus far this year, we remain comfortable with our ability to meet the financial community's expectations for revenues and earnings in the first quarter and full-year 1997." CTS provides the wireless industry with products and services to rapidly and cost-effectively grow their businesses. Today, CTS is setting the standards in RF-based (radio-frequency) fraud prevention with the Blackbird(r) Platform, PreTect(TM) anti-cloning application and the No Clone Zone(SM) roaming fraud prevention service. This advanced set of fraud prevention solutions has been installed in some of the largest markets in the United States by major wireless service providers including: AirTouch Cellular, Ameritech Cellular Ameritech Mobile Communications, LLC was the first company in the United States to provide cellular mobile phone service to the general public. Cell service became publicly available in Chicago on October 13, 1983. Services, Bell Atlantic NYNEX NYNEX New York-New England & X for the Unknown (Telephone Company) NYNEX New York Network Exchange Mobile, GTE GTE General Telephone & Electronics GTE Génie Thermique et Énergie (French) GTE Gas Turbine Engine GTE Global Tropospheric Experiment GTE Geothermal Energy GTE Gas Turbine Efficiency plc (Sweden & USA) Mobilnet California and CellularOne in the Greater Bay Area. Through the use of CTS's Blackbird(r) Platform, cellular carriers are slamming The unauthorized switching of your long distance telephone provider. Unethical marketing organizations contact the local telephone company and claim that certain customers have authorized them to handle their long distance. the door on cloners in numerous markets throughout the United States, including: Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. , San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden , San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , Detroit, Chicago, Boston, Atlanta, Milwaukee, Philadelphia, Baltimore, and Washington D.C. Special Note Regarding Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. : A number of statements contained in this press release are forward-looking statements within the meaning of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995 that involve risks and uncertainties that could cause actual results to differ materially from those expressed or implied in the applicable statements. These risks and uncertainties include but are not limited to: the Company's dependence on the cellular communications market; its vulnerability to rapid industry change and technological obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. ; the limited nature of its product life, and the uncertainty of market acceptance of its products; the unproved status of its products in widespread commercial use, including the risks that its current and future products may contain errors that would be difficult and costly to detect and correct and that technological difficulties may in general hinder hin·der 1 v. hin·dered, hin·der·ing, hin·ders v.tr. 1. To be or get in the way of. 2. To obstruct or delay the progress of. v.intr. or prevent commercialization of its present and future products; potential manufacturing difficulties; potential difficulties in managing growth; dependence on key personnel; the Company's limited customer base and reliance on a relatively small number of customers; the possible impact of competitive products and pricing; the uncertain level of actual purchases of its products by current and prospective domestic and international customers under existing and future agreements; uncertainties in the Company's ability to implement these agreements sufficiently to permit it to recognize revenue under its accounting policies (including its ability to meet product performance criteria contained in such contracts); the results of financing efforts; uncertainties with respect to the Company's business strategy; general economic conditions; and other risks described in this Prospectus and the Company's other filings with the Securities and Exchange Commission. -0- Note to Editors: No Clone Zone is a service mark; Blackbird is a registered trademark; and PreTect is a trademark of Cellular Technical Services Company, Inc. -0-
CELLULAR TECHNICAL SERVICES COMPANY, INC.
STATEMENTS OF OPERATIONS
(unaudited)
Three Months Ended Year Ended
December 31, December 31,
1996 1995 1996 1995
REVENUES
Systems sales $6,552,821 $2,769,753 $19,799,183 $9,531,801
Service fees 353,250 457,399 1,102,421 2,577,523
Total Revenues 6,906,071 3,227,152 20,901,604 12,109,324
COSTS AND EXPENSES
Costs of Systems and
Services 6,122,796 966,653 16,616,591 4,722,105
Sales and
marketing 1,080,461 497,826 3,400,894 2,141,853
General and
administrative 835,122 531,438 2,965,774 2,115,991
Research and
development 1,821,110 842,944 5,523,323 3,539,700
Total Costs and
Expenses 9,859,489 2,838,861 28,506,582 12,519,649
INCOME (LOSS) FROM
OPERATIONS (2,953,418) 388,291 (7,604,978) (410,325)
INTEREST INCOME 40,084 124,680 254,877 475,512
INCOME (LOSS) BEFORE
INCOME TAXES (2,913,334) 512,971 (7,350,101) 65,187
PROVISION FOR
INCOME TAXES 2,000 2,000
NET INCOME
(LOSS) $(2,913,334) $510,971 $(7,350,101) $63,187
NET INCOME (LOSS)
PER SHARE $(.13) $.02 $(.33) $.00
WEIGHTED AVERAGE
SHARES OUTSTANDING 22,422,395 22,894,464 21,998,609 22,026,150
CELLULAR TECHNICAL SERVICES COMPANY, INC.
CONDENSED BALANCE SHEETS
(unaudited)
December 30, December 31,
1996 1995
ASSETS
CURRENT ASSETS
Cash and cash equivalents $4,854,491 $9,448,255
Accounts receivable, net 11,615,719 508,238
Inventories, net 8,274,847 1,947,060
Prepaid expenses and other current
assets 830,651 827,712
Total Current Assets 25,575,708 12,731,265
PROPERTY AND EQUIPMENT, net 3,176,964 2,292,632
SOFTWARE DEVELOPMENT COSTS, net 3,599,039 3,346,748
TOTAL ASSETS $32,351,711 $18,370,645
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $6,364,847 $1,154,396
Payroll related liabilities 735,124 223,222
Taxes (other than payroll and
income) 660,394 197,843
Customers' deposits 4,625,863 20,000
Deferred revenue 1,781,444 41,973
Total Current Liabilities 14,167,672 1,637,434
STOCKHOLDERS' EQUITY 18,184,039 16,733,211
TOTAL LIABILITIES AND $32,351,711 $18,370,645
STOCKHOLDERS' EQUITY
CONTACT: Cellular Technical Services Company, Inc. Joseph D. Pititto, 516/887-0727 |
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