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 million. "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 http://www.competitivetech.net . 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 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 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 E-mail: email@example.com E-mail: firstname.lastname@example.org
SOURCE Competitive Technologies, Inc.