FAIRFIELD, Conn., Sept. 28, 2000 (PRIMEZONE) -- Competitive Technologies, Inc. (AMEX:CTT) today announced revenues for the fiscal year ended July 31, 2000 of $4,112,867, an increase of $473,543 or 13% over the prior year's revenue of $3,639,324. Revenues for the fourth quarter of fiscal 2000 were $1,096,961 compared with the prior year's fourth quarter revenues of $1,034,230.
CTT reported net income of $1,300,937, or $0.21 per share, for its fiscal year ended July 31, 2000 compared to fiscal 1999 net income of $2,919,384, or $0.49 per share. Fiscal year 1999 net income included an after-tax gain of approximately $2,313,000, or $0.39 per share, from the sale of CTT's remaining 14.5% interest in NovaNET Learning, Inc.
Net income for the fiscal 2000 fourth quarter ended July 31, 2000 was $433,178, or $0.07 per share, compared to the net income for the 1999 fourth quarter of $2,586,735, or $0.43 per share. The 1999 fourth quarter net income reflected the NovaNET after-tax gain of approximately $2,313,000, or $0.39 per share.
Retained royalties from the gallium arsenide/laser diode semiconductor technologies were $1,363,000 in fiscal 2000, an increase of $845,000 or 163% compared with $518,000 in fiscal 1999. Retained royalties for the vitamin B12 assay, where patents began to expire in fiscal 2000, were $381,000, a decrease of $591,000 or 61% compared with $972,000 in fiscal 1999. Overall, the royalty revenue mix by sector (with laser diode and plasma display technologies included in the digital/ electronic sector) was as follows:
Fiscal Year Ended July 31
2000 1999
Digital/Electronic Technologies 55% 36%
Life Sciences 43% 63%
Physical Sciences 2% 1%
Operating income for fiscal 2000 was $774,038, an increase of $352,505 or 84% over the prior year's operating income of $421,533. Operating income was $258,110 for the fourth quarter of fiscal 2000, an increase of $146,632 or 131% compared with $111,478 for the fiscal 1999 fourth quarter. Operating expenses in fiscal 2000 increased approximately $120,000, of which $92,000 was related to several litigation and pre-litigation matters. CTT incurred litigation expenses of $157,000 and $65,000 in fiscal 2000 and 1999, respectively.
"Fiscal 2000 was an exciting year for CTT. Revenue and operating income increased significantly, lead by our laser diode royalties. I expect the laser diode patent portfolio will provide increasing royalties over the next few years," said Frank McPike, President of CTT. "We were also active on the acorn investment front. In April 2000 we recognized $736,375 as the economic value of exchanging a significant portion of our NTRU Cryptosystems royalty stream for 10% of the equity of NTRU. We did this simultaneously with an $11 million financing of NTRU by Greylock Partners and Sony."
"In fiscal 2000, we added Micro-ASI, Inc. to our portfolio and saw progress being made by two additional acorn investments, Digital Ink, Inc. (www.n-scribe.com) and Melanotan Corporation (see CTT release dated March 14, 2000)," Mr. McPike continued. "I believe these acorn investments provide our shareholders with significant upside potential. As we head into fiscal 2001, I look forward to continued progress being reported with respect to our ribozyme portfolio and I hope to see a favorable resolution to the litigation related to our homocysteine technology."
About Competitive Technologies, Inc.
Competitive Technologies is a global leader in identifying, developing and commercializing innovative life sciences, physical sciences and digital technologies. Competitive Technologies' specialized expertise and experience make it a valuable partner for inventors, companies and universities of all sizes. CTT has been responsible for closing hundreds of licensing agreements. CTT clients and licensees include: Sony, Matsushita Electric Industrial, The University of Colorado, NTRU Cryptosystems, Inc., Palatin Technologies, Inc. and Ribozyme Pharmaceuticals, Inc. Competitive Technologies, Inc. is based in Fairfield, Connecticut and has affiliates in Osaka, Japan and London, England.
Statements about the Company's future expectations, including development and regulatory plans, and all other statements in this document other than historical facts are "forward-looking statements" within the meaning of applicable Federal Securities Laws and are not guarantees of future performance. These statements involve risks and uncertainties related to market acceptance of and competition for the Company's licensed technologies and other risks and uncertainties inherent in CTT's business, including those set forth in Item 1 of the Company's Form 10-K for the year ended July 31, 1999 and other factors that may be described in CTT's filings with the SEC, and are subject to change at any time. The Company's actual results could differ materially from these forward-looking statements. The Company undertakes no obligation to update publicly any forward-looking statement.
COMPETITIVE TECHNOLOGIES, INC.
AND SUBSIDIARIES
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
Fourth Quarter Ended Fiscal Year Ended
July 31 July 31
2000 1999 2000 1999
Revenues:
Retained royalties $1,085,833 $1,001,654 $3,202,194 $3,463,176
Royalty settlement -- -- 736,375 --
Revenues under
service contracts 11,128 32,576 174,298 176,148
---------- ---------- ---------- ----------
Total revenues 1,096,961 1,034,230 4,112,867 3,639,324
Total operating
expense 838,851 922,752 3,338,829 3,217,791
---------- ---------- ---------- ----------
Operating income 258,110 111,478 774,038 421,533
========== ========== ========== ==========
Gain on sale
of investment -- 2,313,227 -- 2,313,227
Income before
minority interest 369,720 2,546,691 1,237,479 2,879,340
Net income $ 433,178 $2,586,735 $1,300,937 $2,919,384
========== ========== ========== ==========
Net income
per share:
Basic and
diluted $ 0.07 $ 0.43 $ 0.21 $ 0.49
========== ========== ========== ==========
Weighted average
number of common
shares outstanding:
Basic 6,185,310 5,980,807 6,079,211 5,982,112
Diluted 6,311,652 6,020,582 6,187,407 6,009,701
Other Financial Data
Cash and cash equivalents $6,716,429 $5,498,486
========== ==========
Royalties receivable $2,347,176 $1,649,713
========== ==========
Total assets $12,093,965 $8,959,021
========== ==========
Royalties payable $1,780,988 $1,072,704
========== ==========
Total liabilities $2,165,853 $1,778,735
========== ==========
Shareholders' equity $9,928,112 $7,180,286
========== ==========
CONTACT: Strategic IR, Inc., New York
Johnnie D. Johnson
(212) 754-6565
Fax (212) 754-4333
jdjohnson@strategic-ir.com
E-mail: ctt@competitivetech.net
Web site: http://www.competitivetech.net