Competitive Technologies, Inc. Reports Second Quarter Fiscal 2006 Results.FAIRFIELD Fairfield. 1 City (1990 pop. 12,200), Jefferson co., N central Ala., an industrial suburb of Birmingham; inc. 1919. Founded (1910) by the United States Steel Corp., its steel industry has greatly declined, negatively affecting the city's economy. , Conn. -- Competitive Technologies, Inc. (AMEX AMEX See: American Stock Exchange : CTT CTT Correios (Portuguese Postal Service) CTT Certified Technical Trainer CTT Charity Technology Trust CTT Cholesterol Treatment Trialists' (collaboration) CTT Common Task Training ) today announced a net loss of $0.6 million, or $0.09 per share, for its fiscal second quarter ended January January: see month. 31, 2006. This compares to net income of $4.0 million, or $0.54 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, for the second quarter of the prior fiscal year. Retained royalties Not to be confused with Royal family. Royalties (sometimes, running royalties) are usage-based payments made by one party (the "licensee") to another (the "licensor") for ongoing use of an asset, most typically an intellectual property (IP) right. for the quarter ended January 31, 2006, were $1.2 million, a decrease of $5.5 million, or 83%, compared to $6.7 million of retained royalties for the same period in the prior year. However, the prior year included approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $5.8 million of one-time one-time adj. 1. or one·time a. Occurring or undertaken only once: a one-time winner in 1995. b. upfront license fees relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc new 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. testing licenses granted in the prior year. Excluding these one-time upfront fees, retained royalties increased $0.2 million, or approximately 23% over the same period of the prior year. Total revenues for the quarter ended January 31, 2006, were $1.3 million, compared to $6.8 million in the same period of the prior year, with the decrease owing to owing to prep. Because of; on account of: I couldn't attend, owing to illness. owing to prep → debido a, por causa de the decrease in retained royalties, partially offset by an increase in interest income due to higher cash balances and higher interest rates compared to the prior year. Expenses overall decreased approximately $0.9 million in the quarter ended January 31, 2006, compared to the prior year quarter. Personnel and direct expenses decreased $1.0 million, principally due to less commission and incentive compensation in the current year compared to the prior year, offset by increases totaling approximately $0.2 million for non cash employee stock option compensation expense, and recruiting expense incurred to add professional staff to build up our business development capabilities. General and administrative expenses increased $0.2 million, principally due to non cash stock option compensation expense for option issuances to directors, and legal expenses incurred to defend the Company against claims filed against CTT by the Company's former President and Chief Executive Officer. The non cash stock option compensation expenses were new this year due to the implementation on August 1, 2005 of Financial Accounting Standards Board Financial Accounting Standards Board (FASB) Board composed of independent members who create and interpret Generally Accepted Accounting Principles (GAAP). Statement No. 123(R), "Share-Based Payment" ("FAS 123R"). "Our focus is on achieving long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. growth, and the short term results are not unexpected," said Michael Michael, archangel Michael (mī`kəl) [Heb.,=who is like God?], archangel prominent in Christian, Jewish, and Muslim traditions. In the Bible and early Jewish literature, Michael is one of the angels of God's presence. D. Davidson Da·vid·son , Jo(seph) 1883-1952. American sculptor best remembered for his vigorous portrait busts of Woodrow Wilson, Franklin D. Roosevelt, and Albert Einstein, among others. , CTT's Vice President and Chief Financial Officer. "Last year, most of our retained royalties were from one-time upfront license fees, the magnitude magnitude, in astronomy, measure of the brightness of a star or other celestial object. The stars cataloged by Ptolemy (2d cent. A.D.), all visible with the unaided eye, were ranked on a brightness scale such that the brightest stars were of 1st magnitude and the of which will fluctuate from year-to-year, sometimes significantly. Without the upfront license fees, homocysteine revenues increased over last year. We believe that our homocysteine revenues would have been higher if not for certain suspected infringers who may be avoiding royalty Compensation for the use of property, usually copyrighted works, patented inventions, or natural resources, expressed as a percentage of receipts from using the property or as a payment for each unit produced. payments, which has a negative impact on our business. We are continuing our enforcement activities against suspected infringers, and have accelerated our normal audit program of our licensees to make sure we are capturing all of the revenues due to us under our licenses. We expect these efforts to be productive." Dr. D. J. Freed, CTT's President and Chief Executive Officer added, "Our primary focus this fiscal year has been to invest in our business for long-term growth and achieve our strategic goal of building future sustainable, recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenues. We are in discussions with more than a dozen prospective new university clients, and we are talking with more on an almost daily basis. We expect to add to our portfolio of technologies at a much higher rate than in the past. We have increased our licensing activities as well. To ensure that we capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. these opportunities, as planned we have been building our team, and are excited with the business development team that we have assembled as·sem·ble v. as·sem·bled, as·sem·bling, as·sem·bles v.tr. 1. To bring or call together into a group or whole: assembled the jury. 2. . We believe that we have the professional staff and technologies pending or in place to increase the number of licenses that we execute, which in turn should increase revenues and generate increased shareholder value, not just in the short term but for the next five to ten years." For the six months ended January 31, 2006, CTT incurred a net loss of $1.0 million, or $0.13 per share, compared to net income during the same period of the prior year of $4.9 million, or $0.70 per diluted share. Retained revenues for the six months ended January 31, 2006, were $2.4 million, compared to $7.4 million in the prior year. The principal reason for the decrease in retained revenues was the upfront license fees described above that occurred last year but did not recur in the current year. Total revenues for the first half of the current fiscal year were $2.6 million, compared to $9.2 million for the first half of the prior fiscal year. In addition to the decrease in retained revenues, during the first half of last year a total of approximately $1.5 million of revenue was received for a legal settlement and a dividend from one of our investments, neither of which recurred in the current year. Total expenses for the six months ended January 31, 2006, decreased $0.6 million, to $3.6 million from $4.2 million incurred during the same period of the prior year. Personnel and other direct costs decreased $1.1 million, for the same reasons described above for the quarter. General and administrative expenses increased $0.7 million, principally due to an increase in legal costs to defend the Company against claims filed by our former President and Chief Executive Officer, other claims related to former employees, and an increase in directors fees due to the expensing this year of stock options issued to the directors due to the implementation of FAS 123R. CTT will hold a conference call at 11:00 a.m. EDT EDT abbr. Eastern Daylight Time EDT Eastern Daylight Time EDT n abbr (US) (= Eastern Daylight Time) → hora de verano de Nueva York EDT on March 9, 2006 to discuss results. Investors and others are invited to listen to the broadcast live and ask questions by dialing in at (800) 289-0496 (U.S./Canada) or (913) 981-5519 (International). The call will be web cast live over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the at http://www.competitivetech.net in the Investor Relations Investor relations The process by which the corporation communicates with its investors. section. A replay of the call will be available the following day on our website. About Competitive Technologies, Inc. Competitive Technologies, established in 1968, is a full service technology transfer and licensing provider focused on the technology needs of its customers and transforming those requirements into commercially viable solutions. CTT is a global leader in identifying, developing and commercializing innovative technologies in life and physical sciences, electronics, and nanotechnologies developed by universities, companies and inventors This is a list of inventors. See also: List of scientists, Timeline of invention, List of inventions named after people, List of inventors killed by their own inventions, and . . CTT maximizes the value of intellectual assets for the benefit of its customers, clients and shareholders. Visit our website at: www.competitivetech.net. Statements about our future expectations, including development and regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. plans, and all other statements in this press release, 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. If and when used herein, the words "anticipate," "believe," "intend," "plan," "expect," "estimate," "approximate ap·prox·i·mate v. To bring together, as cut edges of tissue. adj. 1. Relating to the contact surfaces, either proximal or distal, of two adjacent teeth; proximate. 2. Close together. ," and similar expressions, as they relate to us or our business or management, are intended to identify such forward-looking statements. These statements involve risks and uncertainties related to market acceptance of and competition for our licensed technologies, growth strategies, operating performance, industry trends, and other risks and uncertainties inherent in our business, including those set forth in Item 7 under the caption "Risk Factors," in our most recent Annual Report on 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 July: see month. 31, 2005, filed with the Securities and Exchange Commission ("SEC") on October October: see month. 13, 2005, and other factors that may be described in our other filings with the SEC, and are subject to change at any time. Our actual results could differ materially from these forward-looking statements. We undertake no obligation to update publicly any forward-looking statement.
COMPETITIVE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except share amounts)
Three months Six Months
ended ended
January 31, January 31,
----------------- -----------------
2006 2005 2006 2005
-------- -------- -------- --------
Revenues
Retained royalties $ 1,152 $ 6,687 $ 2,390 $ 7,442
Royalty legal awards - - - 815
Dividends received - - - 679
Investment income 109 64 236 213
Other income 10 32 12 65
-------- -------- -------- --------
1,271 6,783 2,638 9,214
-------- -------- -------- --------
Expenses
Personnel and other direct expenses
relating to revenues 1,105 2,095 1,994 3,119
General and administrative expenses 761 567 1,531 815
Patent enforcement expenses, net of
reimbursements 58 114 99 284
-------- -------- -------- --------
1,924 2,776 3,624 4,218
-------- -------- -------- --------
Income (loss) before income taxes (653) 4,007 (986) 4,996
Provision (benefit) for income
taxes (12) 50 (12) 71
-------- -------- -------- --------
Net income (loss) $ (641) $ 3,957 $ (974) $ 4,925
======== ======== ======== ========
Net income (loss) per common share:
Basic $ (0.09) $ 0.60 $ (0.13) $ 0.76
======== ======== ======== ========
Diluted $ (0.09) $ 0.54 $ (0.13) $ 0.70
======== ======== ======== ========
Weighted average number of common
shares outstanding:
Basic 7,507 6,633 7,495 6,517
Diluted 7,507 7,353 7,495 7,027
COMPETITIVE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands, except share amounts)
January 31, July 31,
2006 2005
------------ ------------
ASSETS
Current assets:
Cash and cash equivalents $ 12,222 $ 14,280
Receivables 5,883 4,086
Prepaid expenses and other current assets 794 272
------------ ------------
Total current assets 18,899 18,638
Equity securities 459 558
Prepaid royalties 75 75
Deferred equity financing costs, net - 96
Intangible assets, net 29 39
Property and equipment, net 62 35
------------ ------------
TOTAL ASSETS $ 19,524 $ 19,441
============ ============
Current liabilities:
Accounts payable $ 668 $ 643
Accrued expenses and other liabilities 2,820 4,690
------------ ------------
Total current liabilities 3,488 5,333
Non-current royalties payable 1,157 -
------------ ------------
Commitments and contingencies
Shareholders' interest:
5% preferred stock, $25 par value, 35,920
shares authorized, 2,427 shares issued
and outstanding 61 61
Common stock, $.01 par value, 20,000,000
shares authorized, 7,669,333 and 7,326,749
shares issued, respectively 77 73
Capital in excess of par value 33,005 31,285
Accumulated deficit (18,018) (17,044)
Accumulated other comprehensive loss (246) (267)
------------ ------------
Total shareholders' interest 14,879 14,108
------------ ------------
TOTAL LIABILITIES AND SHAREHOLDERS'
INTEREST $ 19,524 $ 19,441
============ ============
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion