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.
THIRD QUARTER AND NINE MONTHS FISCAL 2005
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(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
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
number of common
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,
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.