FAIRFIELD, Conn., Dec. 14, 2007 (PRIME NEWSWIRE) -- Competitive Technologies, Inc. (AMEX:CTT) today announced that the financial results of the first quarter fiscal 2008, ending October 31, 2007, were a net loss of $2.6 million, or $0.32 per share, compared to a net loss of $1.1 million, or $0.14 per share for same period of the prior year.
"We reaffirm our objective to be profitable by early calendar 2008," said John B. Nano, CTT's Chairman, President and CEO. "Our cash position at quarter end remained strong at $5.0 million with no long-term debt. We have obtained new technologies, reduced the number of our senior level staff, lowered overhead costs, and reduced extraneous litigations. Our strategy is to build a technology portfolio that recognizes the paradigm shift resulting from the record high costs of both healthcare and energy. CTT is exploiting the resulting dynamic opportunities by broadening our base of technologies that treat individuals with integrative medicine combining both traditional medicine and holistic medicine. Our alternative energy strategy is focused on clean and efficient technologies such as our new solar technology. Our technologies will contribute to our performance turn-around, and help us fulfill our goal to make CTT a strong profitable organization. The Board, management and staff are working together to restore stockholder value, utilizing our strong sales team and effective global alliances.
"In April 2008, CTT expects to start selling its innovative pain management device in Europe," Mr. Nano added. "The device has received Medical Device CE certification allowing European sales. Additionally, we expect to obtain approvals to market the device in both Asia and the U.S. Our partner Daeyang E&C is investing over $1 million to design and tool manufacturing for the pain management technology therapy's multi-processor device for worldwide sales. CTT's MC Square device, that has sold over 1.5 million units in Korea, has received recognition in several U.S. media channels and distributor relationships are being developed."
Cash used in the 2008 quarter was approximately $1.5 million. Several expenses in the 2008 quarter were non-cash charges and several legal fee charges are expected to be recovered through successful litigation and insurance.
Contributing to the first quarter fiscal 2008 loss was an impaired loss of $0.2 million, reflecting the decline in value of Palatin Technologies, Inc. shares previously provided to CTT as a partial royalty payment. Also included was a charge of approximately $0.7 million of litigation fees incurred primarily to collect royalties and fees owed by Palatin Technologies, Inc. for their use of CTT's sexual dysfunction technology, and to recover CTT's investment in Agrofrut, E.U. CTT expects to prevail in both matters and recover these expenditures. Additionally, expenses included over $0.2 million related to staff reductions finalized in this quarter that occurred in fiscal 2007.
Revenue for the first quarter 2008 was $0.2 million, compared to $0.9 million for the same period in the prior fiscal year. The decrease in revenue was primarily due to lower homocysteine assay royalties with the U.S. patent expiration in July 2007 and licensees-withheld royalties. CTT is pursuing litigation against Carolina Liquid Chemistries Corporation and others for alleged infringement of the recently expired homocysteine assay patent, and seeking to recover due, but withheld, royalties from other companies.
Mr. Nano continued, "We expect to develop revenue streams from our newly expanded technology portfolio. We have strengthened our portfolio of innovative technologies with the recent addition of the solar panel technology, as well as the previously announced pain management, MC Square stress reduction device, UAD tubular-connection, LED patents and the Radio Alert Warning System. We are focused on growing revenue, increasing shareholder value, and reducing costs, completing our targeted goal of a $2 million annual cost reduction for recurring items."
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, 2007, filed with the SEC 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 QUARTER 2008
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(dollars in thousands, except per share amounts)
(unaudited)
First Quarter October 31,
2007 2006
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Revenue $ 210 $ 895
Operating expenses 2,770 2,017
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Net loss 2,560 1,122
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Net loss per share:
Basic and diluted $ 0.32 $ 0.14
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Weighted average number of
common shares outstanding:
Basic and diluted (in 000s) 8,107 7,989
At October 31, At July 31,
2007 2007
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Other Financial Data
Cash, cash equivalents and
restricted cash $ 5,070 $ 6,572
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Total assets $ 6,658 $ 9,713
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Total liabilities $ 2,000 $ 2,114
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Shareholders' equity $ 4,658 $ 7,599
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