FAIRFIELD, Conn., Sept. 30, 2002 (PRIMEZONE) -- Competitive Technologies, Inc. (AMEX:CTT) today announced its results for the 2002 fiscal fourth quarter and year ended July 31, 2002.
The net loss for the fourth quarter of fiscal 2002 was $778,450, ($0.13) per share, compared with a net loss of $1,706,544, ($0.28) per share, for the fourth quarter of fiscal 2001. CTT's net loss for fiscal 2002 was $4,016,428, ($0.65) per share, compared with its net loss for fiscal 2001 of $2,500,749, ($0.41) per share, primarily reflecting lower revenues.
CTT revenues for the fourth quarter of fiscal 2002 were $841,725 compared with $1,199,946 in the fourth quarter of fiscal 2001, a decrease of $358,221 or 30%. Revenues for fiscal 2002 were $2,595,931 compared with $3,641,284 for fiscal 2001, a decrease of $1,045,353 or 29%. Revenues from retained royalties for gallium arsenide semiconductor inventions were approximately $1,178,000 lower in fiscal 2002 than in fiscal 2001 reflecting lower telecom industry sales.
John B. Nano, CTT's President and CEO stated, "These results are clearly unacceptable. Since I joined CTT three months ago, we have developed a strategic plan to capitalize on CTT's core strengths in technology licensing to transform the company and its results. We have started to implement our strategy of focusing on building profitable revenue growth through technology licensing. We are working with end-user customers to understand their technology requirements, i.e., "wish lists," and deliver the appropriate technology solutions utilizing CTT's extensive experience and network. Building a strong licensing base will create shareholder value."
Total operating expenses for the fourth quarter of fiscal 2002 were $1,372,075, which was $977,883 (42%) lower than in the fourth quarter of fiscal 2001. Total operating expenses for fiscal 2002 were $5,874,816 compared with $5,873,645 in fiscal 2001. In the fourth quarter of fiscal 2002, lower net patent enforcement expenses and consultants' fees and expenses were partially offset by increases in various other expenses as compared with the fourth quarter of fiscal 2001. In fiscal 2002, lower net patent enforcement expenses, consultants' fees and expenses, and directors' stock expenses were offset by higher expenses for personnel, corporate legal, and recruiting as compared to fiscal 2001. Intangible asset impairment charges were approximately $156,000 in fiscal 2002.
For the fourth quarter of fiscal 2002, 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, were approximately $345,000, which is 74% lower than in the fourth quarter of fiscal 2001. For fiscal 2002, net patent enforcement expenses of approximately $2,132,000 were 14% lower than in fiscal 2001.
Effective July 23, 2002, CTT agreed with the University of Illinois, CTT's client, that the University would assume the cost of new lead counsel in the patent infringement litigation against Fujitsu currently before the U.S. District Court for the Northern District of California. Prior to this agreement, CTT bore the entire costs of lead counsel for this litigation. CTT retains an economic interest in its potential favorable outcome.
Operating loss for the fourth quarter of fiscal 2002 was $530,350 compared with operating loss of $1,150,012 for the fourth quarter of fiscal 2001. Operating loss for fiscal 2002 was $3,278,885 compared with operating loss of $2,232,361 for fiscal 2001 primarily due to lower revenues.
Effective August 5, 2002, CTT sold and transferred all of its interests related to E. L. Specialists, Inc. (ELS) to MRM Acquisitions, LLC (MRM) for $200,000 cash. As a result of the sale and transfer to MRM, CTT recorded an additional $262,724 impairment loss on loans to ELS in July 2002, bringing the total for the fiscal year ended July 31, 2002 to $781,924. At July 31, 2002, CTT carried its notes receivable from ELS as current assets at $200,000, which it collected from MRM in cash on August 5, 2002.
About Competitive Technologies, Inc.
Competitive Technologies, established in 1968, is a global leader in identifying, developing and commercializing innovative life sciences, physical sciences, digital technologies and electronics. CTT's specialized expertise and experience make it a valuable partner to assist technology-rich universities, inventors and companies of all sizes to maximize the value of their intellectual assets. Visit CTT's website: http://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" within the meaning of applicable Federal Securities Laws and are not guarantees of future performance. These statements involve risks and uncertainties, including those set forth in Item 1 of the Company's most recent Form 10-K and in CTT's other 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
(dollars in thousands, except per share amounts)
Fourth Quarter Ended Fiscal Year Ended
July 31 July 31
2002 2001 2002 2001
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Revenue $ 842 $ 1,200 $ 2,596 $ 3,641
Total operating expense 1,372 2,350 5,875 5,874
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Operating loss $ (530) $(1,150) $(3,279) $(2,232)
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Impairment loss $ (263) $ (600) $ (810) $ (600)
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Net loss $ (778) $(1,707) $(4,016) $(2,501)
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Net loss per share:
Basic and diluted $(0.13) $ (0.28) $ (0.65) $ (0.41)
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Weighted average
number of common shares
outstanding:
Basic and diluted (000) 6,154 6,124 6,148 6,135
Other Financial Data
Cash and cash equivalents $ 750 $ 224
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Short-term investments $ 2,137 $ 4,793
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Royalties receivable $ 1,159 $ 2,731
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Total assets $ 6,400 $10,641
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Royalties payable $ 1,308 $ 1,852
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Total liabilities $ 3,407 $ 3,673
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Shareholders' equity $ 2,993 $ 6,968
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