FAIRFIELD, Conn., March 17, 2009 (GLOBE NEWSWIRE) -- Competitive Technologies, Inc. (NYSE Alternext US:CTT) today announced financial results for the second quarter fiscal 2009, ending January 31, 2009.
Expenses were substantially reduced for the fiscal first six months ended January 31, 2009, decreasing 56% to approximately $2.0 million, compared to approximately $4.6 million for the prior year six months. In September 2008, CTT recorded an expense reduction of $0.4 million received from Federal Insurance Co. under its theft insurance policy relating to the Marcovitch, et al case.
"We continue to reduce our costs and expect revenue to grow as we progress with our aggressive sales program for the pain management medical device and other products and technologies," said John B. Nano, CTT's Chairman, President and CEO. "Contractual minimums in the signed distribution agreements for the device have a retail sales value of over $25 million for 2009 and about $50 million for 2010. CTT will share in revenue derived from sales of the device to distributors. In February 2009, CTT received FDA 510(k) authorization for U.S. sales of the device. The device's European CE mark certification allows it to be distributed and sold throughout Europe, and makes it eligible for approval for distribution and sales in multiple global markets. The signed distribution agreements for this device now cover over 48% of the world's population. Our distributors expect sales to exceed the contract minimums.
"During the last half of 2008, we signed four country-exclusive distribution agreements covering India, Korea, Bangladesh, and Malaysia. In early 2009, CTT signed an agreement for distribution rights in 31 countries throughout Europe, Asia, Africa, the Middle East, South America and Oceania, for a total of 35 countries worldwide. Local sales authorization is required in each country. U.S. and international patents are pending.
"In July 2008, we signed an equity financing arrangement with Fusion Capital for up to $5.0 million of cash through sale of our common stock, at our option. Of the $5.0 million, $4.6 million remained available at January 31, 2009."
Total revenue for the fiscal second quarter ended January 31, 2009, was approximately $0.03 million, compared to approximately $0.5 million in the same period of the prior year. Revenue for the six-month period ended January 31, 2009 were $0.1 million compared to $0.7 million in the same period of the prior year. The revenue decline resulted from lower royalties where technology patents expired.
The net loss for the quarter is approximately $0.9 million, or $0.11 per share, a 31% improvement over the net loss of approximately $1.3 million, or $0.16 per share, for the prior year quarter. The net loss for the six-month period ending January 31, 2009 is $1.9 million, or $0.23 per share, a 51% improvement over the net loss of approximately $3.9 million, or $0.47 per share, for the prior-year period.
Mr. Nano continued, "As the pain management medical device attains mature market levels, we believe it will reach approximately $200 million per year in distributor sales to hospitals and clinics. At that time, our revenue and profits from the device will dramatically exceed those produced by any other technology in CTT's 40-year history, resulting in approximately $20 million per year to CTT, with limited related costs. CTT is aware of the needs expressed worldwide for treatment of pain, and is pleased to be part of the solution as we aggressively market the device to meet those needs. There is exciting potential for the success of this device in the global pain management market; a market estimated to reach $40 billion by 2010."
CTT has exclusive worldwide rights to this patented medical device, a non-invasive method for rapid treatment of high-intensity oncologic and neuropathic pain, including pain resistant to morphine and other drugs. For more information on the device, visit www.CalmareTT.com.
Mr. Nano noted, "The licensee for our nanoparticle bone biomaterial for human spinal applications, Soteira Inc., completed a second fund raise for a total of approximately $18 million in Series A and B financing. Soteira is seeking US FDA and European CE Mark approval for the bone biomaterial. We are currently pursuing licensing opportunities for other human applications of this technology.
"CTT's management team is focused on creating profitable revenue growth, restoring shareholder value, building global alliances, and maximizing the dynamic opportunities of our products and technologies."
About Competitive Technologies, Inc.
Competitive Technologies, established in 1968, provides distribution, patent and technology transfer, sales and licensing services focused on the needs of its customers and matching those requirements with commercially viable product or technology solutions. CTT is a global leader in identifying, developing and commercializing innovative products and 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, 2008, filed with the SEC on October 28, 2008, 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 2009
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(dollars in thousands, except per share amounts) (unaudited)
Second Quarter Ended Six Months Ended
January 31, January 31,
2009 2008 2009 2008
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Revenue $ 29 $ 531 $ 133 $ 730
Operating expenses 961 1,829 2,033 4,589
Provision for income tax -- -- -- --
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Net (loss) $ (932) $ (1,299) $ (1,900) $ (3,859)
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Net (loss) per share:
Basic and diluted $ (0.11) $ (0.16) $ (0.23) $ (0.47)
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Weighted average number of
common shares outstanding:
Basic and diluted (000) 8,441 8,159 8,327 8,133
At January 31, At July 31,
2009 2008
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Other Financial Data
Cash and cash equivalents $ 694 $ 2,237
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Total assets $ 1,658 $ 3,111
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Total liabilities $ 1,348 $ 1,518
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Shareholders' equity $ 310 $ 1,593
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