FAIRFIELD, Conn., March 16, 2007 (PRIME NEWSWIRE) -- Competitive Technologies, Inc. (AMEX:CTT) today announced financial results for the three and six months ended January 31, 2007.
"The results being announced today, based on the actions of CTT's previous Board of Directors and senior management, reflect their final accounting period. These results are unacceptable," said John B. Nano, CTT's Chairman, President and CEO. "The new Board of Directors and management are dedicated to producing a profitable organization with growing revenue and shareholder value. Our management team is aggressively working to bring revenue to CTT and reduce costs wherever possible. We are fortunate to currently have about $10 million in the bank and no long-term debt."
As a result of a proxy contest, CTT's prior Board was completely replaced with a new Board, including Mr. Nano, at a shareholder meeting on February 2, 2007.
The financial result is a net loss of approximately $3.6 million, or $0.44 per share, for its second quarter ended January 31, 2007. This compares to a net loss of approximately $0.6 million, or $0.09 per share, for the second quarter of the prior fiscal year. The net loss for the six-month period ending January 31, 2007 is $4.7 million, or $0.59 per share, compared to a net loss of $1.0 million, or $0.13 per share, for the prior-year period.
Total revenues for the quarter ended January 31, 2007, were approximately $0.9 million, compared to approximately $1.3 million in the same period of the prior year. Revenues for the six-month period ended January 31, 2007 were $1.8 million compared to $2.6 million in the same period of the prior year. The decrease in total revenues was due to the decrease in retained royalties, primarily homocysteine royalties. CTT is currently pursuing litigation against alleged infringers of its homocysteine assay patent, including Carolina Liquid Chemistries Corporation, Catch, Inc., and the Diazyme Laboratories Division of General Atomics.
Expenses in total for the quarter ended January 31, 2007 were approximately $4.5 million, compared to approximately $1.9 million in the prior year quarter. Personnel and other direct expenses relating to revenues increased approximately $0.3 million due to the addition of new business development staff and accrued severance costs covering agreements negotiated by prior management with two employees. Current management has reinstated both employees. General and administrative expenses for the quarter ended January 31, 2007 were about $2.9 million, an increase of $2.1 million from the prior year amount of about $0.8 million. The increase was primarily from costs associated with the prior Board and management's annual meetings and proxy contest of about $1.0 million, amounts paid to settle an employee suit claiming $5.1 million for $1.0 million and the employee's related legal costs of $0.65 million. Patent enforcement expenses increased to $0.2 million, net of reimbursements, from approximately $0.1 million for the prior year primarily due to litigation of the Carolina Liquids suit.
For the six-month period ended January 31, 2007, expenses were $6.5 million compared to $3.6 million for the prior year period. Personnel and other direct expenses increased to $2.5 million from $2.0 million in the prior year primarily due to new employee additions and accrued severance costs covering agreements negotiated by prior management with two employees who have both been reinstated by current management. The $3.6 million general and administrative expenses for the current six months are $2.1 million higher than the $1.5 million for the prior year six months. The increase is primarily due to the prior Board and management's annual meetings and proxy solicitation costs of about $1.0 million, settlement of an employee suit claiming $5.1 million for $1.0 million and the employee's legal fees of $0.65 million.
About Competitive Technologies, Inc.
Competitive Technologies, established in 1968, is a full service technology transfer and licensing provider focused on the technology needs of its customers and transforming those requirements into commercially viable solutions. CTT is a global leader in identifying, developing and commercializing innovative technologies in life, electronic, nano, and physical sciences developed by universities, companies and inventors. CTT maximizes the value of intellectual assets for the benefit of its customers, clients and shareholders. Visit CTT's website: www.competitivetech.net
Statements about our future expectations are "forward-looking statements" within the meaning of applicable Federal Securities Laws, and are not guarantees of future performance. When used herein, the words "may," "will," "should," "anticipate," "believe," "appear," "intend," "plan," "expect," "estimate," "approximate," and similar expressions are intended to identify such forward-looking statements. These statements involve risks and uncertainties inherent in our business, including those set forth in Item 1A under the caption "Risk Factors," in our most recent Annual Report on Form 10-K for the year ended July 31, 2006, filed with the SEC on October 30, 2006, and other filings with the SEC, and are subject to change at any time. Our actual results could differ materially from these forward-looking statements. We undertake no obligation to update publicly any forward-looking statement.
COMPETITIVE TECHNOLOGIES, INC.
FIRST HALF FISCAL 2007
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(dollars in thousands, except per share amounts) (unaudited)
Second Quarter Six Months
Ended January 31, Ended January 31,
2007 2006 2007 2006
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Revenue $ 904 $ 1,271 $ 1,799 $ 2,638
Operating expenses 4,467 1,924 6,484 3,624
Provision for income tax -- (12) -- (12)
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Net (loss) $(3,563) $ (641) $(4,685) $ (974)
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Net (loss) per share:
Basic and diluted $ (0.44) $ (0.09) $ (0.59) $ (0.13)
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Weighted average number of
common shares outstanding:
Basic and diluted (000) 8,017 7,507 8,003 7,495
At January 31, At July 31,
2007 2006
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Other Financial Data
Cash, cash equivalents
and restricted cash $ 12,382 $ 12,909
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Total assets $ 16,361 $ 18,417
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Total liabilities $ 5,359 $ 3,963
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Shareholders' equity $ 11,002 $ 14,454
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