Competitive Technologies, Inc. Reports Net Income of $2.9 Million for Its Fiscal Year 1999.FAIRFIELD, Conn.--(BUSINESS WIRE)--September 27, 1999-- 1999 Revenues Increase 39% CTT CTT Correios (Portuguese Postal Service) CTT Certified Technical Trainer CTT Charity Technology Trust CTT Cholesterol Treatment Trialists' (collaboration) CTT Common Task Training Fourth Quarter Earnings $.43 Per Share Competitive Technologies, Inc. (AMEX AMEX See: American Stock Exchange : CTT) announced today net income of $2,919,384 ($0.49 per share) for its fiscal year ended July 31, 1999. Net income for the fiscal 1999 fourth quarter was $2,586,735 ($0.43 per share). For the first time since 1978, the company is reporting positive operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. and net income for the fiscal year. For fiscal 1998, the net loss was $1,235,489 ($0.21 per share) and the net loss for the 1998 fourth quarter was $346,220 ($0.06 per share). Net income for the Company's 1999 fourth quarter and fiscal year includes an after-tax gain of approximately $2,313,000 (or $0.39 per share) on the sale of its remaining 14.5% interest in NovaNET Learning, Inc. For the fiscal year ended July 31, 1999, revenues were $3,639,324, an increase of approximately $1,027,000 or 39% over the prior fiscal year's revenues of $2,611,834. Revenues for the quarter ended July 31, 1999 were $1,034,230, an increase of approximately $270,000 or 35% over the prior year's fourth quarter revenues of $764,728. Operating income was $421,533 for the fiscal year ended July 31, 1999 compared with an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. of $1,381,903 for the fiscal year ended July 31, 1998. Operating income was $111,478 for the fiscal 1999 fourth quarter compared with an operating loss of $403,546 for the fiscal 1998 fourth quarter. 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. for fiscal 1999 were 19% lower than fiscal 1998. "Clearly, fiscal 1999 was a turnaround year for CTT," said Frank R. McPike, Jr., President of CTT. He continued, "The results we have achieved are very encouraging. CTT has now attained three consecutive quarters of profitability and a profitable fiscal year. The restructuring that we put in place early in fiscal 1999 allowed us to control expenses. Our major focus is now on ways to increase revenue. As an example, our fourth quarter operating results benefited positively from a final non-exclusive license milestone payment from SONY on the unique encryption technology we represent on behalf of NTRU NTRU Native Title Research Unit (AIATSIS) NTRU Number Theorists R Us NTRU N-Th Degree Truncated Polynomial Ring Cryptosystems, Inc. We are continuously pursuing opportunities to generate revenue from our technology portfolio." "Two of the principal ways this organization makes money are through retained royalties and through investing as a principal in ownership of companies we support," Mr. McPike said. He continued, "From our acorn investment in NovaNET in the late 1980's, we realized approximately $2.5 million in cash this year. CTT is now well funded with $5.5 million in cash and short-term investments, no debt, and significant net operating tax loss carryforwards tax loss carryforward See carryforward. which can shield approximately $16 million of pretax income pretax income Reported income before the deduction of income taxes. Pretax income is sometimes considered a better measure of a firm's performance than aftertax income because taxes in one period may be influenced by activities in earlier periods. . These factors provide a solid foundation upon which to grow our Company as we move into the new millennium. In addition, our technology portfolio contains several high profile technologies including encryption (with Internet and e-commerce security applications), plasma display Also called "gas discharge display," a flat-screen technology that uses tiny cells lined with phosphor that are full of inert ionized gas (typically a mix of xenon and neon). Three cells make up one pixel (one cell has red phosphor, one green, one blue). energy recovery circuitry, homocysteine Homocysteine Definition Homocysteine is a naturally occurring amino acid found in blood plasma. High levels of homocysteine in the blood are believed to increase the chance of heart disease, stroke, Alzheimer's disease, and osteoporosis. , ribozymes and laser diodes A semiconductor-based laser used to generate analog signals or digital pulses for transmission through optical fibers. Both laser diodes and LEDs (light-emitting diodes) are used for this purpose, but the laser diode generates a smaller beam that is easier to couple with the smaller core . I expect all of these to contribute to a profitable future for CTT." 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 in commercializing technologies for companies and universities of all sizes. CTT has been responsible for closing hundreds of licensing agreements. CTT clients include: SONY, Lucent Technologies, Matsushita Electric Industrial and Ribozyme Ribozyme A ribonucleic acid (RNA) molecule that, like a protein, can catalyze specific biochemical reactions. Examples include self-splicing rRNA and RNase P, both involved in catalyzing RNA processing reactions (that is, the biochemical reactions that convert Pharmaceuticals, Inc. Competitive Technologies, Inc. is based in Fairfield, Connecticut Fairfield is a town located in Fairfield County, Connecticut, United States. It is situated along the Gold Coast of Connecticut. Fairfield is a town of many neighborhoods, two of which -- Southport and Greenfield Hill -- are notably affluent. 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 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. " 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended July 31, 1998 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. -0-
COMPETITIVE TECHNOLOGIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
Fourth Quarter Ended Fiscal Year Ended
July 31, July 31,
1999 1998 1999 1998
Revenues:
Retained royalties $1,001,654 $ 713,856 $ 3,463,176 $ 2,400,534
Revenues under service
contracts and grants 32,576 50,872 176,148 211,300
Total revenues 1,034,230 764,728 3,639,324 2,611,834
Total operating expense 922,752 1,168,274 3,217,791 3,993,737
Operating income (loss) 111,478 (403,546) 421,533 (1,381,903)
Gain on sale
of investment 2,313,227 - 2,313,227 -
Income (loss) before
minority interest 2,546,691 (367,341) 2,879,340 (1,258,210)
Net income (loss) $ 2,586,735 $(346,220) $2,919,384 $(1,235,489)
Net income (loss) per
share:
Basic and diluted $ 0.43 $(0.06) $ 0.49 $ (0.21)
Weighted average number
of common shares
outstanding: 5,980,807 5,981,535 5,982,112 5,969,434
Total assets $8,959,021 $6,301,864
Shareholders' equity $7,180,286 $4,172,413
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