Cellular Technical Services Reports 2000 Operating Results.Business Editors SEATTLE--(BUSINESS WIRE)--March 20, 2001 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 fourth-quarter and full-year financial results for 2000.
Summary of Financial Highlights
(Dollar amounts in 000s, except per share data)
Three Months Ended 12/31 Twelve Months Ended 12/31
2000 1999 2000 1999
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Revenue $6,617 $2,110 $25,973 $10,241
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Net Income (Loss) ($24) $607 $2,552 $2,599
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Net Income (Loss) Per
Share
Basic ($0.01) $0.27 $1.12 $1.14
Diluted ($0.01) $0.26 $1.09 $1.13
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Revenue increased 214% in the fourth quarter of 2000 over the comparable quarter of 1999, and 154% for the full year compared to the 1999 period. The increases are due to prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. phone card revenue from
the Company's Isis Isis, in Egyptian religionIsis (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 Telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. , Inc. subsidiary ("Isis"), totaling $4.9 million in the current quarter and $18.0 million for the full year 2000. The Company began sales of phone cards in late December December: see month. 1999. 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. product line revenue declined 15%, or $0.3 million, in the fourth quarter and 22%, or $2.3 million, for the full year 2000 as compared to the prior year periods, in line with expectations. For the fourth quarter of 2000, CTS reported a net loss of $24,000, compared to net income of $0.6 million in the prior year period. Results for the current quarter were negatively impacted by the addition of $0.4 million in additional phone card-related reserves, primarily due to the financial condition of a former supplier. Excluding these reserves, net income from operations for the fourth quarter of 2000 would have been $0.4 million. Net income for the full year ended December 31, 2000, totaled $2.6 million and included approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $750,000 in research and development costs expensed related to our Neumobility product development efforts. Full year 2000 net income also included a net $1.5 million legal settlement received in the second quarter. Steve v. t. 1. To pack or stow, as cargo in a ship's hold. See Steeve. Katz Katz , Bernard 1911-2003. German-born British physiologist. He shared a 1970 Nobel Prize for the study of nerve impulse transmission. , CTS Chairman and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. noted, "The events of the fourth quarter that negatively impacted operating results were in our prepaid phone card business segment and were not associated with our recently announced Blackbird contract or with our Neumobility geo-location software products. We have strong cash and working capital positions, no debt, and our balance sheet contains an investment in Trueposition, Inc. common stock at cost that may hold significant appreciation potential if Trueposition, Inc. does well. We have continued our strict headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. and expense controls while devoting significant resources to Neumobility product development efforts. Our discussions with industry partners about Neumobility have been very encouraging." Katz also noted, "as previously reported, although our base Blackbird business continues to provide profits and positive cash flow, we anticipate its revenue decline will accelerate in 2001." 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 industry. Over the past 12 years, CTS has used its extensive experience with real-time wireless call processing In telecommunication, the term call processing has the following meanings:
The Company will hold a conference call at 9:00 a.m. Eastern time Wednesday Wednesday: see week. March 21 to discuss its fourth-quarter and full-year 2000 results. Please call 800/399-0840 to join the call. Replays will be available starting two hours after the call until March 28, 2001 at 800/642-1687, code 79019. 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; 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.
CELLULAR TECHNICAL SERVICES COMPANY, INC.
SELECTED CONSOLIDATED BALANCE SHEET DATA
(in 000's, except per share amounts)
------------------------- ------------------ -------------------
December 31, 2000 December 31, 1999
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Cash $4,529 $4,787
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Accounts Receivable, net 793 2,647
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Inventories, net 1,096 592
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Total Assets 9,774 10,202
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Working Capital 5,443 3,621
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Stockholders' Equity 8,268 5,673
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CELLULAR TECHNICAL SERVICES COMPANY, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(in 000's, except per share amounts)
Three Months Ended Twelve Months Ended
December 31, December 31,
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2000 1999 2000 1999
-------- -------- --------- --------
REVENUE
Blackbird Systems and
Services $ 1,767 $ 2,091 $ 7,940 $ 10,222
Phone cards 4,850 19 18,033 19
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Total Revenue 6,617 2,110 25,973 10,241
COSTS AND EXPENSES
Cost of systems, services
and phone cards 5,420 746 20,532 3,745
Sales and marketing 412 168 1,373 685
General and administrative 549 441 2,063 2,137
Research and development 437 352 1,480 1,593
-------- -------- -------- --------
Total Costs and Expenses 6,818 1,707 25,448 8,160
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INCOME (LOSS) FROM
OPERATIONS (201) 403 525 2,081
OTHER INCOME, net 25 146 1,669 274
INTEREST INCOME, net 60 61 416 275
-------- -------- -------- --------
INCOME (LOSS) BEFORE
INCOME TAXES AND MINORITY (116) 610 2,610 2,630
INTEREST
PROVISION FOR INCOME TAXES -- (3) (58) (31)
-------- -------- -------- --------
NET INCOME (LOSS) BEFORE
MINORITY INTEREST (116) 607 2,552 2,599
MINORITY INTEREST 92 -- -- --
-------- -------- -------- --------
NET INCOME $ (24) $ 607 $ 2,552 $ 2,599
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EARNINGS PER SHARE:
Basic $ (0.01) $ 0.27 $ 1.12 $ 1.14
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Diluted $ (0.01) $ 0.26 $ 1.09 $ 1.13
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WEIGHTED AVERAGE SHARES
OUTSTANDING:
Basic 2,291 2,282 2,287 2,282
Diluted 2,310 2,319 2,339 2,292
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