Cellular Technical Services Reports 2000 First-Quarter Results, Which Show Continued Growth in both Revenue and Profits.Business/High Tech Editors SEATTLE--(BUSINESS WIRE)--April 27, 2000 Cellular Technical Services Company, Inc. (Nasdaq: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 reported its 2000 first-quarter results.
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Summary of Financial Highlights
(in 000s, except per share data)
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Three Months Ended March 31,
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2000 1999 Change
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Revenue $4,917 $2,764 78%
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Net Income $ 666 $ 515 29%
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Net Income Per Share
Basic $0.29 $0.23 26%
Diluted $0.28 $0.23 22%
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Revenue increased $2.2 million or 78% from the prior year quarter, resulting from $2.7 million in revenue from sales of prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. phone
cards, which began in December December: see month. 1999. This was offset by a $0.6 million
revenue decline in sales and service revenue from the 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. Platform
product line. Net income increased by $151,000 or 29% over first quarter
1999, resulting from higher overall sales volume and lower costs and
expenses. This was offset by lower average margins on sales of prepaid
phone cards and new business startup (STARTing UP) "At startup" means when the computer is first turned on or when a program is first loaded. See Startup folder. expenses.Stephen Katz
Stephen Katz (1946 in New York City – 18 October, 2005 in Plano, Texas) was an American teacher and screenwriter. , CTS Chairman and Chief Executive Officer, stated, "Throughout 1999, we established a solid foundation upon which we can build our Company's future. As part of this process, we diversified diversified (di·verˑ·s our business into the prepaid phone card market through our subsidiary, Isis Isis, in Egyptian religion Isis (ī`sĭs), nature goddess whose worship, originating in ancient Egypt, gradually extended throughout the lands of the Mediterranean world during the Hellenistic period and became one of the chief Tele-Communications, and began development of commercial applications for the emerging geo-location market. We are pleased with the Company's first-quarter financial results, and believe that we are focusing on the right opportunities to continue our progress." "We expect that our new diversified structure will provide revenue growth in 2000 and beyond. This is important because we believe sales and service revenue from the Blackbird Platform product line will decline over time," Katz Katz , Bernard 1911-2003. German-born British physiologist. He shared a 1970 Nobel Prize for the study of nerve impulse transmission. added. "While we have started 2000 on a positive trend, CTS' management will remain focused on revenue growth and expense control, as well as identifying additional opportunities to further grow the company's top and bottom line." CTS provides real-time information processing information processing: see data processing. information processing Acquisition, recording, organization, retrieval, display, and dissemination of information. Today the term usually refers to computer-based operations. and management solutions for the telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. industry. Over the past 11 years, CTS has used its extensive experience with real-time wireless call processing In telecommunication, the term call processing has the following meanings:
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. : This press release may contain 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 for CTS or its affiliates to differ materially from those expressed or implied Inferred from circumstances; known indirectly. In its legal application, the term implied is used in contrast with express, where the intention regarding the subject matter is explicitly and directly indicated. in the applicable statements. These risks and uncertainties include but are not limited to: dependence on analog cellular networks for certain products and services; 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. ; limited customer base and reliance on a relatively small number of customers and customer contracts; dependence on a limited number of existing products and services; uncertainty of continued demand for and market penetration Noun 1. market penetration - the extent to which a product is recognized and bought by customers in a particular market penetration - the act of entering into or through something; "the penetration of upper management by women" of its existing products and services under existing and future contracts; uncertainty in its ability to timely develop, introduce and gain acceptance of new products and services; uncertainty of the demand for and market penetration of new products and services; the possible impact of competitive products and pricing; the risk that its current and future products may contain errors or be affected by technical problems that would be difficult and costly to detect and correct; manufacturing difficulties, including reliance on a limited number of outside vendors for key components and processes; potential difficulties in managing changing business conditions; dependence on key personnel; the availability of financing; and other risks described in CTS' filings with the Securities and Exchange Commission.
- SEE ATTACHED TABLES -
CELLULAR TECHNICAL SERVICES COMPANY, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(in 000's, except per share amounts)
(unaudited)
Three Months Ended
March 31,
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2000 1999
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REVENUES
Systems $ 275 $ 557
Services 1,895 2,207
Phone cards 2,747 --
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Total Revenues 4,917 2,764
COSTS AND EXPENSES
Cost of systems,
services and phone cards 3,155 1,078
Sales and marketing 313 170
General and administrative 558 591
Research and development 355 445
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Total Costs and Expenses 4,381 2,284
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INCOME FROM OPERATIONS 536 480
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OTHER INCOME, net 24 2
INTEREST INCOME, net 132 33
INCOME BEFORE INCOME
TAXES AND MINORITY INTEREST 692 515
PROVISION FOR INCOME TAXES 15 --
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NET INCOME BEFORE MINORITY INTEREST 677 515
MINORITY INTEREST (11) --
------- -------
NET INCOME $ 666 $ 515
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EARNINGS PER SHARE:
Basic $ .29 $ .23
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Diluted $ .28 $ .23
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WEIGHTED AVERAGE SHARES OUTSTANDING:
Basic 2,282 2,281
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Diluted 2,357 2,281
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CELLULAR TECHNICAL SERVICES COMPANY, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(in 000's)
March 31, December 31,
2000 1999
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(unaudited)
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 7,060 $ 4,787
Accounts receivable, net of
allowances of $5 in 2000
and $5 in 1999 2,168 2,647
Inventories, net 822 592
Prepaid expenses and deposits 291 124
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Total Current Assets 10,341 8,150
PROPERTY AND EQUIPMENT, net 773 874
SOFTWARE DEVELOPMENT COSTS, net 89 178
NOTE RECEIVABLE 1,000 1,000
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TOTAL ASSETS $12,203 $10,202
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable and
accrued liabilities $ 1,118 $ 917
Payroll related liabilities 286 525
Taxes (other than
payroll and income) 71 35
Customers' deposits 475 175
Deferred revenue 3,902 2,877
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Total Current Liabilities 5,852 4,529
MINORITY INTEREST 11 --
TOTAL STOCKHOLDERS' EQUITY 6,340 5,673
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $12,203 $10,202
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