Compositech Ltd. Reports Third Quarter/Nine Months Results.HAUPPAUGE, NY--(BUSINESS WIRE)--Nov. 16, 1998--Compositech Ltd., (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CTEK), which produces patented high tech laminates for the printed circuit board industry, today reported results for the third quarter and nine months ended September 30, 1998. Total revenues for the third quarter rose to $153,110 from $115,999 for the same 1997 period. For the month of July, sales reached $66,000, largely reflecting a previously announced purchase from Teradyne, Inc. Net loss for the quarter was $1,434,438 compared with a loss of $2,744,648 for the same 1997 period. For 1998, after giving effect to 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 $102,212 (a non-cash item), basic loss per share available to common shareholders was 12 cents and 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. loss per share was 11 cents. For 1997, basic loss per share was 42 cents and diluted loss per share was 27 cents. Revenues for the third quarter included a $16,280 amortization of licensing income relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the million dollar non-refundable license fee received in January in connection with the company's joint venture in Taiwan. Total revenues for the nine months were $346,839, compared with $411,467 in the same 1997 period. Revenues for the 1998 period included $47,856 of amortization of licensing income. Net loss for the nine month period was $4,460,317 compared with $5,535,582 for the like 1997 period. For 1998, after providing for the non-cash preferred dividend preferred dividend n. a payment of a corporation's profits to holders of preferred shares of stock. (See: preferred stock) of $367,330, basic loss per share available for common stockholders was 44 cents a share and diluted loss per share was 36 cents. For 1997, basic loss per share was 86 cents and diluted loss per share was 69 cents. The company said the decreased loss for the quarter compared to the same prior year period was due primarily to not having the amortization of debt discount of $911,263 that was included in last year's loss and to the lower level of manufacturing expenses, reflecting sales that were below expectations as well as lower direct manufacturing See rapid manufacturing. costs. For the nine month period, the decreased loss was due to the reduction in the amortization of debt discount to $497,603 in 1998 compared with $1,032,465 in 1997 and to the other reasons cited above for the quarter. Christopher F. Johnson, who became president and chief executive officer in June 1998, stated, "The company has significantly increased its sales activities through the use of sales representatives and delivered sample quantities to 22 qualified, potential new customers in the third quarter. Because of the necessity of obtaining Underwriters Laboratory and customer approvals, it takes several months before qualification orders for new customers result in 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. sales. The company's sales focus is clearly on the high layer count, high density, multilayer and backplane An interconnecting device that has sockets for printed circuit boards to plug into. Passive and Active Although resistors may be used, a "passive" backplane adds no processing in the circuit. market segments. A major initiative to reach a long term supply agreement with a significant printed wiring board fabricator fab·ri·cate tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates 1. To make; create. 2. To construct by combining or assembling diverse, typically standardized parts: is progressing and additional supply agreements are being pursued." Mr. Johnson added, "The company's internal focus, which in the past had been appropriately on technology development, has been reoriented to customer satisfaction as we ramp up Ramp Up To increase a company's operations in anticipation of increased demand. Notes: A company might 'ramp up' operations if they just signed a contract creating substantially more demand for their product. See also: Demand, Economies of Scale production to meet customer demand. Previously purchased equipment is being installed at our Hauppauge plant and will be operational in the fourth quarter. We are also pursuing discussions with potential industrial partners to accelerate the commercialization of the company's products worldwide." Compositech Ltd. develops, produces and markets innovative and superior copper-clad, fiberglass epoxy epoxy Any of a class of thermosetting polymers, polyethers built up from monomers with an ether group that takes the form of a three-membered epoxide ring. The familiar two-part epoxy adhesives consist of a resin with epoxide rings at the ends of its molecules and a curing laminates used to manufacture 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. The statements made in this press release contain certain 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 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-QSB for the quarter ended September 30, 1998, its Registration Statement on Form S-3 declared effective by the Securities and Exchange Commission on July 8, 1998, as well as its report on Form 10-KSB for the year ended December 31, 1997, may affect the results achieved by the Company.
COMPOSITECH LTD.
Financial Highlights (Unaudited)
For the Three Months Ended For the Nine Months Ended
9/30/98 9/30/97 9/30/98 9/30/97
Revenues $153,110 $115,999 $346,839 $411,467
Net (Loss) (1,434,438) (2,744,648) (4,460,317) (5,535,582)
Basic (Loss)
per share (0.12) (0.42) (0.44) (0.86)
Diluted (Loss) per
share (0.11) (0.27) (0.36) (0.69)
Shares used in computing
per share
amounts 12,741,533 6,465,141 10,916,633 6,462,405
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