Competitive Technologies Reports Record Revenue and Profits for Nine Months Fiscal 2005

Jun 14, 2005, 01:00 ET from Competitive Technologies, Inc.

    FAIRFIELD, Conn., June 14 /PRNewswire-FirstCall/ -- Competitive
 Technologies, Inc. (Amex:   CTT) today announced profitable results for the
 three and nine months ended April 30, 2005.
     Revenues for the first nine months of fiscal 2005 increased 79% to $11.7
 million compared with $6.6 million for the first nine months of fiscal 2004.
 Revenues for the first nine months of fiscal 2005 include $8.0 million from
 royalties on the patented homocysteine assay. Revenues for the third quarter
 of fiscal 2005 are $2.5 million compared to $4.2 million for the third quarter
 of fiscal 2004, which quarter included $3.5 million from the successful
 resolution of the Materna(TM) litigation.
     CTT's net income for the first nine months of fiscal 2005 was $5.3
 million, compared with the net income for the first nine months of fiscal 2004
 of $3.1 million, an improvement of $2.2 million. The net income of $0.4
 million for the third quarter of fiscal 2005 compares to a net income of $2.7
 million in the third quarter of fiscal 2004, which quarter included the
 benefit of the Materna litigation. The profitable business results have
 increased working capital to $12.9 million and shareholders' equity to $13.0
     "CTT's annual recurring revenue and earnings continue to grow," said Dr.
 Donald J. Freed, CTT's President and CEO. "We expect full year fiscal 2005
 results to show double-digit growth in revenue and earnings over fiscal 2004.
 We continue to successfully leverage near-term opportunities while executing
 our longer-term strategies for sustained growth and increased shareholder
 value. We are generating significant revenues from new homocysteine assay
 licenses, including royalty revenues and one-time up-front license fees. Our
 team has successfully signed license agreements with the companies performing
 the majority of the homocysteine assays in the U.S. marketplace. These
 companies include Bayer, Abbott, Roche, Quest, Axis-Shield and Diagnostic
 Products Corporation. We believe that the number of assays performed annually
 in the U.S. is increasing each year, and we expect significant recurring
 revenue from our homocysteine assay technology in each of the fiscal years
 2005, 2006, and 2007."
     Richard E. Carver, Chairman of CTT's Board of Directors, said, "We are
 actively exploring strategic alternatives to increase shareholder value,
 including further investment in our operations, and mergers and acquisitions
 with businesses that compliment our current business."
     Dr. Freed continued, "CTT markets a wide range of highly appealing
 innovative technologies. During the nine-month period, CTT signed an agreement
 to exclusively license and commercialize a patented RFID "event-driven"
 information technology that allows movement of individuals or assets to be
 tracked, coordinated and managed in applications including medical patient
 information, homeland security, military and general business. Other
 technologies in CTT's dynamic portfolio include Video and Audio Signal
 Processing, which consists of two patents included in the MPEG-4 Visual Patent
 Portfolio License Pool administered by MPEG LA. CTT just began earning
 royalties this quarter from this royalty pool, which is growing as
 applications and licensees continue to increase. In addition, we have a
 male/female sexual dysfunction therapeutic being developed by CTT's exclusive
 licensee, Palatin Technologies, in collaboration with King Pharmaceuticals, a
 sunless tanning technology being developed by CTT's exclusive sub-licensee,
 EpiTan Ltd., a recently patented nanotechnology bone biomaterial, encryption
 technology, the EZSpeech(TM) software platform, an anti-cancer compound, and
 the Therapik(R) insect sting and bite treatment device."
     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. We are 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 our website at .
     Statements about our future expectations, including development and
 regulatory plans, and all other statements in this press release other than
 historical facts are "forward-looking statements" within the meaning of
 applicable Federal Securities Laws, and are not guarantees of future
 performance. When used herein, the words "anticipate," "believe," "intend,"
 "plan," "expect," "estimate," "approximate," and similar expressions, as they
 relate to us or our business or management, are intended to identify such
 forward-looking statements. These statements involve risks and uncertainties
 related to market acceptance of and competition for our licensed technologies,
 growth strategies, operating performance, industry trends, and other risks
 inherent in our business, including those set forth in Item 7 under the
 caption "Risk Factors," in our most recent Annual Report on Form 10-K filed
 with the SEC on October 29, 2004, and other factors that may be described in
 our 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.
                                AND SUBSIDIARIES
         (dollars in thousands, except per share amounts)   (unaudited)
                                  Third Quarter            Nine Months
                                  Ended April 30,        Ended April 30,
                                  2005        2004         2005      2004
        Revenue                 $2,533      $4,155      $11,747    $6,556
        Operating expenses       2,207       1,448        6,425     3,439
        Provision (benefit)
         for income tax            (34)         40           37        40
        Net income               $ 360      $2,667       $5,285    $3,077
        Net income per share:
         Basic                   $0.05       $0.43        $0.80    $ 0.49
         Assuming dilution       $0.05       $0.42        $0.73    $ 0.48
        Weighted average
         number of common
         shares outstanding:
          Basic(000)             6,868       6,267        6,631     6,225
          Assuming Dilution(000) 7,685       6,382        7,242     6,404
                                                    At April 30,  At July 31,
                                                        2005         2004
         Other Financial Data
         Cash and cash equivalents                    $16,555       $4,310
         Total assets                                 $20,436       $6,681
        Total liabilities                              $7,413       $1,742
        Shareholders' equity                          $13,023       $4,939
      Direct inquiries to:  Johnnie D. Johnson of Strategic IR, Inc.
                            Tel. (212) 754-6565; Fax (212) 754-4333

SOURCE Competitive Technologies, Inc.