FAIRFIELD, Conn., Dec. 14, 2001 (PRIMEZONE) -- Competitive Technologies, Inc. (AMEX:CTT) announced today its fiscal first quarter results for the three months ended October 31, 2001.
CTT revenues for the first quarter of fiscal 2002 were $409,739 compared with $463,578 in the first quarter of fiscal 2001. In addition to retained royalties of $384,739, revenues for the first quarter of fiscal 2002 include $25,000 from services we provided one customer.
Retained royalties of $384,739 for the first quarter of fiscal 2002 were $77,930 (17%) lower than retained royalties of $462,669 in the first quarter of fiscal 2001. Retained royalties from the expiring Vitamin B12 assay patents account for nearly all of this decline.
Net loss for the first quarter of fiscal 2002 was $1,039,040, ($0.17) per share, including patent enforcement expenses (net of reimbursements) of $631,615, compared with net loss of $185,140, ($0.03) per share, for the first quarter of fiscal 2001, including patent enforcement expenses (net of reimbursements) of $60,085. Patent enforcement expenses (net of reimbursements), principally related to three legal actions in which CTT and its clients have sued to enforce their patent rights, increased $571,530.
Operating loss for the first quarter of fiscal 2002 was $1,084,044 compared with operating loss of $304,845 for the first quarter of fiscal 2001.
Total operating expenses for the first quarter of fiscal 2002, including $631,615 in patent enforcement expenses (net of reimbursements), were $1,493,783, which was $725,360 (94%) higher than in the first quarter of fiscal 2001. In addition to the increase in patent enforcement expenses (net of reimbursements) of $571,530, other operating expenses increased $153,830. This includes increased personnel and related expenses for additional staff hired during the third quarter of fiscal 2001 to develop new clients and license technologies.
Frank R. McPike, Jr., President and CEO of CTT, said, "CTT's business is seasonal with the second and fourth quarters historically producing substantially higher retained royalties, recently related to the gallium arsenide laser diode technology. However, due to uncertainties in the markets for products using this technology, we cannot predict whether our royalties will continue at, or decline from, their recent levels."
Mr. McPike went on to say, "Although the first quarter of fiscal 2002 does not reflect any revenues which may result from the judgment in our lawsuit against LabCorp, in December 2001 the District Court entered judgment confirming the validity of our patent rights and finding that LabCorp willfully contributed to and induced infringement. If the Court's judgment becomes final, CTT will retain approximately $400,000 of damages awarded plus statutory interest. In addition, we expect the Court to rule on legal costs and punitive damages during December 2001. We are also reviewing our current homocysteine licenses to determine full compliance and offering licenses to others who have not yet obtained proper licenses to perform homocysteine assays."
Mr. McPike continued, "We must enforce our intellectual property rights, even though the costs are substantial, to protect our current clients and to give confidence to new clients and licensees. Our enforcement record is enviable. We have either won or favorably settled all the enforcement actions we have taken in the past. We believe that our ultimate return from our enforcement actions will be significant future royalties to benefit our clients and our shareholders."
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 Arizona, 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)
First Quarter Ended October 31,
2001 2000
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Revenues:
Retained royalties $ 384,739 $ 462,669
Revenues under service
contracts 25,000 909
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Total revenues 409,739 463,578
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Operating expenses
Patent enforcement expenses,
net of reimbursements 631,615 60,085
Other costs of technology
management services 518,343 332,394
General and administration
expenses 343,825 375,944
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Total operating expenses 1,493,783 768,423
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Operating loss (1,084,044) (304,845)
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Net loss $(1,039,040) $ (185,140)
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Net loss per share:
Basic and diluted $ (0.17) $ (0.03)
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Weighted average number of
common shares outstanding:
Basic and diluted 6,139,351 6,179,313
Other Financial Data
Cash and cash equivalents $ 479,262 $ 1,235,485
Short-term investments $ 5,330,488 $ 6,329,373
Royalties receivable $ 256,665 $ 367,466
Total assets $ 9,251,263 $10,869,236
Royalties payable $ 820,276 $ 1,004,198
Total liabilities $ 3,322,557 $ 1,493,215
Shareholders' equity $ 5,928,706 $ 9,376,021