Competitive Technologies, Inc. Reports Second Quarter Net Income of $428,705, $0.07 Per Share.Business/Technology Editors 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.--(BUSINESS WIRE)--March 14, 2000 - Net Income and 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. for First Six Months of Fiscal Year Seventh Consecutive Quarter of Increased Revenues over Prior Year's Quarter 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 ) announced today its second fiscal quarter results for the three and six month ended January 31, 2000. Net income of $428,725, $0.07 per share, for the second quarter of fiscal 2000 was $189,891 higher than net income of $238,834, $0.04 per share, for the second quarter of fiscal 1999. CTT's net income of $287,659, $0.05 per share, for the first six months of fiscal 2000 was $364,273 higher than its net loss of $76,614 ($0.01 per share) for the first six months of fiscal 1999. Operating income of $281,683 for the second quarter of fiscal 2000 was $50,235 higher than operating income of $231,448 for the second quarter of fiscal 1999. CTT's operating income of $59,763 for the first six months of fiscal 2000 was $182,221 higher than its 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 $122,458 for the first six months of fiscal 1999. Revenues for the second quarter of fiscal 2000 increased $152,795 (15%) to $1,146,069 compared with $993,274 in the second quarter of fiscal 1999. Revenues for the first six months of fiscal 2000 increased $304,308 (22%) to $1,716,896 compared with $1,412,588 for the first six months of fiscal 1999. Retained royalties of $1,118,229 for the second quarter of fiscal 2000 were $152,775 (16%) higher than $965,454 in the second quarter of fiscal 1999. Retained royalties of $1,562,959 for the first six months of fiscal 2000 were $281,250 (22%) higher than $1,281,709 in the first six months of fiscal 1999. Total 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 the second quarter of fiscal 2000 were $864,386; which was $102,560 (13%) higher than in the second quarter of fiscal 1999. Total operating expenses for the first six months of fiscal 2000 were $1,657,133; which was $122,087 (8%) higher than in the first six months of fiscal 1999. Total operating expenses of $1,535,046 in the first six months of fiscal 1999 included $70,000 for restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. . CTT increased its technology commercialization and contract services activities compared to the previous year. As a result, costs of technology management services for the second quarter and first six months of fiscal 2000 were $51,294 (11%) and 185,419 (21%) higher, respectively, than in the comparable periods of fiscal 1999. General and administration expenses were $51,266 (17%) higher than in the second quarter of fiscal 1999 but only $6,668 (1%) higher than in first six months of fiscal 1999 and reflect higher shareholder expenses, including costs related to the Company's annual meeting of stockholders. Frank R. McPike, Jr., President of CTT said, "We are pleased to report the seventh consecutive quarter that CTT has realized higher revenues than in the prior year's comparable quarter. Retained royalties from the gallium arsenide An alloy of gallium and arsenic compound (GaAs) that is used as the base material for chips. Several times faster than silicon, it is used in high frequency applications such as cellphones, DVD players and fiber optics. semiconductor inventions, which include laser diode 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 applications, were approximately $363,000 (166%) higher than in the second quarter of fiscal 1999. This is particularly encouraging since more than $350,000 of this increase is based on higher sales of licensed products. Royalty revenues this quarter increased despite approximately $378,000 of non-recurring royalty revenues in the second quarter of fiscal 1999 and a 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. sublicensee's withholding Withholding Any tax that is taken directly out of an individual's wages or other income before he or she receives the funds. Notes: In other words, these funds are "withheld" from your wages. royalties on certain tests since the summer of 1998, which we are currently litigating." Mr. McPike continued, "We have reported both operating income and net income in four of the last five quarters. In addition, for the first six months of fiscal 2000 we have reported both operating income and net income. Our efforts in recent years are bearing fruit. We continue to mine our existing technology portfolio and add new technologies to our pipeline. We are also considering opportunities to accelerate growth by acquiring synergistic synergistic /syn·er·gis·tic/ (sin?er-jis´tik) 1. acting together. 2. enhancing the effect of another force or agent. syn·er·gis·tic adj. 1. businesses and investing in developing companies." 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 spe·cial·ize v. spe·cial·ized, spe·cial·iz·ing, spe·cial·iz·es v.intr. 1. To pursue a special activity, occupation, or field of study. 2. expertise and experience make it a valuable partner 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. For more information about CTT, see www.competitivetech.net. 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, 1999 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.
COMPETITIVE TECHNOLOGIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(Unaudited)
Three Months ended Six Months ended
January 31, January 31,
2000 1999 2000 1999
Revenues:
Retained royalties $1,118,229 $ 965,454 $ 1,562,959 $ 1,281,709
Revenues under
service contracts 27,840 27,820 153,937 130,879
Total revenues 1,146,069 993,274 1,716,896 1,412,588
Costs of technology
management services 512,236 460,942 1,076,320 890,901
General and administration
expenses 352,150 300,884 580,813 574,145
Restructuring
charge -- -- -- 70,000
Total operating
expenses 864,386 761,826 1,657,133 1,535,046
Operating
income (loss) 281,683 231,448 59,763 (122,458)
Net income (loss) $ 428,725 $ 238,834 $ 287,659 $ (76,614)
Net income (loss)
per share,
basic and diluted $ 0.07 $ 0.04 $ 0.05 $ (0.01)
Weighted average
number of common
shares outstanding:
Basic 6,009,531 5,975,286 6,006,086 5,983,132
Diluted 6,039,908 6,006,466 6,036,385 5,983,132
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