Compositech Ltd. Reports First Quarter Results; Loss Reduced Under Program to License Technology and Pursue Mergers or Acquisitions.Business Editors HAUPPAUGE, N.Y.--(BUSINESS WIRE)--May 16, 2000 Compositech Ltd. (Nasdaq:CTEK), a developer of high tech laminates for the printed circuit board industry, today reported results for the first quarter ended March 31, 2000. Because of the Company's decision to suspend manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. in December 1999 and refocus Verb 1. refocus - focus once again; The physicist refocused the light beam" focus - cause to converge on or toward a central point; "Focus the light on this image" 2. its resources on locating suitable licensees, joint venture partners or purchasers for its patented technology and equipment design, the Company did not record any sales, manufacturing or research and development expense in the first quarter of 2000. Net loss for the three months ended March 31, 2000 was $900,930 compared with $1,649,873 for the same 1999 period. Basic and diluted loss per share was five cents for the first quarter of 2000 compared with 11 cents for the like 1999 quarter, which included an accrued preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. dividend of $11,851. The 2000 quarter's loss included non-cash items of $399,517, including $259,869 of amortization of debt discount and expenses and $120,736 of amortization of the value of warrants and common stock issued for professional services (job) professional services - A department of a supplier providing consultancy and programming manpower for the supplier's products. or directors' compensation. The 1999 quarter's loss included $353,215 of non-cash items. "The quarter's results reflect the reduction of overhead resulting from the Company's new business plan," said Samuel S. Gross, Compositech's Chief Financial Officer. "Our operating cash requirement has been reduced to a level of approximately $120,000 a month," he added. "We expect further reductions as we pursue our plan of licensing our technology, joint ventures, sale of technology and merger or acquisitions. As part of this program, we are negotiating for additional required funding to satisfy existing liabilities and cover our reduced overhead until sufficient revenues are obtained from licensing programs. Discussions are progressing for potential mergers or acquisitions and related financing and we hope to have announcements on these in the near future," Gross concluded. "We are continuing to make progress in our licensing discussions," reported Jonas Medney, Chairman and Chief Executive Officer. "Several potential licensees appear to be convinced of the high tech market need for our laminates reflected by the endorsements received from Lucent Technologies (NYSE NYSE See: New York Stock Exchange :LU), Sun Microsystems Sun Microsystems, Inc. (NASDAQ: JAVA[3]) is an American vendor of computers, computer components, computer software, and information-technology services, founded on 24 February 1982. (NASDAQ:SUNW SUNW Sun Microsystems, Inc (former stock symbol; now JAVA) SUNW Stanford University Network Workstation (Sun Microsystems, Inc) ), Teradyne (NYSE:TER Third version. See bis. ) and Tyco International For the unrelated division of Mattel, see . Tyco International Ltd. NYSE: TYC is a diversified manufacturing conglomerate incorporated in Bermuda, with United States operational headquarters in New Jersey. (NYSE:TYC TYC Texas Youth Commission TYC Torneos Y Competencias (Argentina) TYC To Your Credit TYC Toronto Youth Cabinet (youth members of the Toronto City Council) TYC Teconnaught Youth Club (Ireland) ), among others. We are working with them to develop an appropriate project leading to one or more licenses," Medney added. Compositech Ltd. has developed innovative and superior copper-clad and fiberglass epoxy laminates used to make printed circuit boards, which are essential components of personal computers, workstations, data communications data communications, application of telecommunications technology to the problem of transmitting data, especially to, from, or between computers. In popular usage, it is said that data communications make it possible for one computer to "talk" with another. , Internet servers and telecommunications equipment. Compositech(TM) and CL200+(TM) are trademarks of Compositech Ltd. The statements made in this press release contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Act of 1934 that involve a number of risks and uncertainties. Actual events or results may differ from the Company's expectations. In addition to the matters described in this press release, risk factors listed from time to time in the Company's SEC reports and filings, including, but not limited to, its report on Form 10-KSB for the year ended December 31, 1999, may affect the results achieved by the Company.
COMPOSITECH LTD. FINANCIAL HIGHLIGHTS
(Unaudited)
For the Three Months Ended
3/31/2000 3/31/1999
Revenues $ -- $ 108,570
Net (loss) $ (900,930) $(1,649,873)
(Loss) per common share
basic and diluted $ (0.05) $ (0.11)
Shares used in computing
net (loss) per share 18,185,433 14,627,528
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