FAIRFIELD, Conn., March 14, 2001 (PRIMEZONE) -- Competitive Technologies, Inc. (AMEX:CTT) announced today its fiscal second quarter and six month results for the periods ended January 31, 2001.
Net income of $494,203, $0.08 per share, for the second quarter of fiscal 2001 was $65,478 (15%) higher than net income of $428,725, $0.07 per share, for the second quarter of fiscal 2000. CTT's net income of $309,063, $0.05 per share, for the first six months of fiscal 2001 was $21,404 (7%) higher than its net income of $287,659, $0.05 per share, for the first six months of fiscal 2000.
Operating income of $399,484 for the second quarter of fiscal 2001 was $117,801 (42%) higher than operating income of $281,683 for the second quarter of fiscal 2000. CTT's operating income of $94,639 for the first six months of fiscal 2001 was $34,876 (58%) higher than its operating income of $59,763 for the first six months of fiscal 2000.
Revenues for the second quarter of fiscal 2001 increased $415,129 (36%) to $1,561,198 compared with $1,146,069 in the second quarter of fiscal 2000. Revenues for the first six months of fiscal 2001 increased $307,880 (18%) to $2,024,776 compared with $1,716,896 for the first six months of fiscal 2000.
Retained royalties of $1,558,588 for the second quarter of fiscal 2001 were $440,359 (39%) higher than $1,118,229 in the second quarter of fiscal 2000. Retained royalties of $2,021,257 for the first six months of fiscal 2001 were $458,298 (29%) higher than $1,562,959 in the first six months of fiscal 2000. Retained royalties from the gallium arsenide semiconductor inventions, which include laser diode applications, were approximately $635,000 higher in the second quarter and $652,000 higher in the first six months than in the comparable periods of fiscal 2000, principally as a result of increased sales of licensed products
Total operating expenses for the second quarter of fiscal 2001 were $1,161,714, which was $297,328 (34%) higher than in the second quarter of fiscal 2000. Total operating expenses for the first six months of fiscal 2001 were $1,930,137, which was $273,004 (16%) higher than in the first six months of fiscal 2000. Approximately $244,000 of the second quarter increase and $251,000 of the six months increase related to increased patent litigation expenses for three cases in which the Company and its clients have sued to enforce their patent rights.
Frank R. McPike, Jr., President and CEO of CTT said, "We are pleased to report revenues in excess of $2 million for the first six months of fiscal 2001. Retained royalties from the gallium arsenide semiconductor inventions, which include laser diode applications, have grown dramatically in the last two years. Although we cannot predict whether retained royalties from the gallium arsenide semiconductor inventions will continue to grow at this rate, their growth has more than replaced declining Vitamin B12 royalties as the Vitamin B12 patents expire and the royalties withheld by licensees of our endoscopic ligator during the reexamination of our patent. However, I am pleased to report that we have been notified we will receive a reexamination certificate soon. We believe we will then be entitled to all withheld and future endoscopic ligator royalties, although we cannot predict when, if ever, licensees will resume remitting those royalties."
Mr. McPike continued, "We have reported both operating income and net income in the second quarter for each of the last four fiscal years and for the first half for each of the last two fiscal years. This is particularly encouraging considering the investment in patent litigation expense we are making to enforce our patent rights. We are currently engaged in legal proceedings to enforce our patent rights with respect to three technologies. Together with the University of Illinois, we filed complaints with the United States International Trade Commission and in the United States District Court for the Central District of Illinois against Fujitsu in respect of our patent rights covering energy recovery circuitry for large plasma display panels. On March 5, 2001, the Materna(TM) damages retrial began in the United States District Court for the District of Colorado. Finally, the trial for our complaint against LabCorp is scheduled to begin in April 2001. We believe we have strong positions in all these cases, and we are willing to enforce our patent rights to obtain the royalties we believe are due to our clients and to us."
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 for inventors, companies and universities of all sizes. CTT has been responsible for closing hundreds of licensing agreements. CTT clients and licensees include: SONY, Matsushita Electric Industrial, the University of Colorado, the University of Illinois, Digital Ink, Inc., NTRU Cryptosystems, Inc., Palatin Technologies, Inc. and Ribozyme Pharmaceuticals, Inc. Competitive Technologies, Inc. is based in Fairfield, Connecticut 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" 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 most recent Form 10-K 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,
2001 2000 2001 2000
Revenues:
Retained royalties $ 1,558,588 $ 1,118,229 $ 2,021,257 $ 1,562,959
Revenues under
service contracts 2,610 27,840 3,519 153,937
Total revenues 1,561,198 1,146,069 2,024,776 1,716,896
Total operating
expenses 1,161,714 864,386 1,930,137 1,657,133
Operating income 399,484 281,683 94,639 59,763
Net income $ 494,203 $ 428,725 $ 309,063 $ 287,659
Net income per
share:
Basic and diluted $ 0.08 $ 0.07 $ 0.05 $ 0.05
Weighted average
number of
common shares
outstanding:
Basic 6,117,761 6,009,531 6,148,537 6,006,086
Diluted 6,159,701 6,039,908 6,200,061 6,036,385
Other Financial Data
Cash and cash
equivalents $ 417,392 $ 124,663
Short-term
investments 5,675,791 5,735,475
Royalties receivable 3,494,039 2,143,362
Total assets $12,623,660 $9,635,517
Royalties payable $ 2,499,171 $1,490,083
Total liabilities 2,965,847 1,968,065
Shareholders' equity $ 9,657,813 $7,667,452