FAIRFIELD, Conn., March 17, 2008 (PRIME NEWSWIRE) -- Competitive Technologies, Inc. (AMEX:CTT) today announced financial results for the three and six months ended January 31, 2008.
The financial results for the second quarter ended January 31, 2008 are a net loss of approximately $1.3 million, or $0.16 per share, a 64% improvement when compared to the net loss of approximately $3.6 million, or $0.44 per share, for the prior year quarter. The net loss for the six-month period ending January 31, 2008 is $3.9 million, or $0.47 per share, a 17% improvement when compared to the net loss of $4.7 million, or $0.59 per share, for the prior-year period. Cash position at quarter end was $4.5 million, with no long-term debt.
"Although results are very disappointing, the decrease in net loss for both the current quarter and six-month periods compared to 2007 indicates that we are moving in the right direction toward restoring profitability," said John B. Nano, CTT's Chairman, President and CEO. "We reduced costs for the second quarter fiscal 2008 by 59% below the prior-year quarter. The benefit of our cost reduction program will continue in the third quarter fiscal 2008, where we expect operating costs to decline an additional 30% from the current quarter.
"We continue to build a technology portfolio that exploits the opportunities of the paradigm shift resulting from record high costs of both healthcare and energy. Sales prospects for our innovative pain management device, a significant component of our rapidly developing medical strategy, are highly encouraging. The non-invasive treatment, with European Union Medical Device CE certification, has been successfully used in seven hospitals in Italy on over 2,000 patients suffering from intense drug-resistant pain. The device is being manufactured by CTT licensee Daeyang E&C of Korea for worldwide distribution.
"Many factors contribute to CTT's improving picture. A 40% staff reduction has lowered operating costs. Arbitration with Palatin Technologies, Inc. has been settled, allowing CTT to reclaim its proper rights to the important sexual dysfunction technology. Expansion of our medical strategy includes a license to Percept BioSciences for development of a library of patented attention and cognitive enhancement compounds from our client, the Medical College of Georgia, and an agreement to represent Angioscan's non-invasive early-detection test for breast cancer. We have also signed an agreement to represent NTRU in Korea for their suite of products for embedded security software solutions."
Total revenues for the quarter ended January 31, 2008, were approximately $0.5 million, compared to approximately $0.9 million in the same period of the prior year. Revenues for the six-month period ended January 31, 2008 were $0.7 million compared to $1.8 million in the same period of the prior year. The decrease in total revenues was primarily due to the decrease in retained royalties for homocysteine, partially offset by increased royalties for the sexual dysfunction technology. CTT is currently pursuing litigation against alleged infringers of its homocysteine assay patent.
Expenses for the quarter ended January 31, 2008 were approximately $1.8 million, a 59% decrease, compared to approximately $4.5 million in the prior year quarter. Expenses for the six-month period ended January 31, 2008 were approximately $4.6 million, a 29% decrease, compared to $6.5 million for the prior year period.
The current quarter and six month periods, when compared to prior year periods, include cost reductions of $0.5 million from reduction of staff and related costs, approximately $0.6 million associated with the prior Board and management's annual meetings and proxy contest, $1.6 million settlement of an employee suit including related legal expenses, and about $0.5 million received from the Palatin arbitration settlement, reducing incurred patent enforcement costs. Offsetting the savings were increased legal fees, primarily related to the Marcovitch suit, of $0.2 million and $0.5 million in the current quarter and six months, respectively. A non-cash charge for impairment of available-for-sale-securities of $0.2 million was included in the current six months expenses.
Mr. Nano continued, "CTT's management team is focused on creating value from technologies, restoring shareholder value, building global alliances, and maximizing the dynamic opportunities of our technologies. We have broadened our portfolio with technologies that treat individuals with integrative medicine combining both traditional and holistic medicine, and strengthened our alternative energy portfolio segment. We are aggressively marketing the pain management therapy, breast cancer detection test, MC Square stress reduction device (www.relaxmc.com), solar panels, UAD surgical prosthetics, and the LED portfolio technologies to drive revenue growth, improve profitability and create shareholder value. Our full technology portfolio may be viewed on our website."
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 made about our future expectations are forward-looking statements and subject to risks and uncertainties as described in our most recent Annual Report on Form 10-K for the year ended July 31, 2007, filed with the SEC on October 29, 2007, 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 2008
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(dollars in thousands, except per share amounts) (unaudited)
Second Quarter Six Months
Ended January 31, Ended January 31,
2008 2007 2008 2007
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Revenue $ 530 $ 904 $ 730 $ 1,799
Operating expenses 1,829 4,467 4,589 6,484
Provision for income tax -- -- -- --
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Net (loss) $(1,299) $(3,563) $(3,859) $(4,685)
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Net (loss) per share:
Basic and diluted $ (0.16) $ (0.44) $ (0.47) $ (0.59)
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Weighted average number
of common shares
outstanding:
Basic and diluted (000) 8,159 8,017 8,133 8,003
At January 31, At July 31,
2008 2007
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Other Financial Data
Cash and cash equivalents $ 4,522 $ 6,572
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Total assets $ 5,762 $ 9,713
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Total liabilities $ 2,161 $ 2,114
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Shareholders' equity $ 3,601 $ 7,599
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