FAIRFIELD, Conn., June 12, 2008 (PRIME NEWSWIRE) -- Competitive Technologies, Inc. (AMEX:CTT) today announced financial results for the three and nine months ended April 30, 2008.
The financial results for the third quarter ended April 30, 2008 are a net loss of approximately $1.0 million, or $0.12 per share, a 50% reduction in the net loss when compared to the net loss of approximately $2.0 million, or $0.25 per share, for the prior year quarter. The net loss for the nine-month period ending April 30, 2008 is $4.9 million, or $0.60 per share, a 28% reduction in the net loss when compared to the net loss of $6.7 million, or $0.84 per share, for the prior-year period. Cash position at quarter end was $2.9 million, with no long-term debt.
"We have continued to reduce costs and believe revenue will grow as we progress with our sales program for the pain management device and other innovative technologies in our portfolio," said John B. Nano, CTT's Chairman, President and CEO. "We have collected over $700,000 for our client and for CTT by successfully enforcing our homocysteine patent rights, collecting royalties due on the patent that expired in July 2007. Moving in the right direction toward restoring profitability, we reduced our cost base in the third quarter fiscal 2008 by 57% below the prior year quarter. In addition, our 40% staff reduction and other cost-cutting actions will lower future operating costs. We continue to market and build our technology portfolio to exploit the opportunities of the paradigm shift resulting from record high costs of both healthcare and energy.
"We predict strong near-term results for the pain management device that will be marketed globally. We proudly announced the NIH grant for Asthma study at the University of Connecticut's School of Medicine for research supported by CTT that we believe will rapidly lead to an Asthma assay. Also, we recently obtained rights to a compressed air drying device from SECO in Italy.
"Sales and profit prospects for our innovative pain management device, a significant component of our rapidly developing medical strategy, are highly encouraging. We believe revenues from the device will dramatically exceed those produced by any other technology in our 40-year history, and reach approximately $20 million per year, as the device attains mature market levels. A letter of agreement has been signed with a multi-billion-dollar European healthcare company for exclusive European distribution rights. The non-invasive treatment, with European Union Medical Device CE certification, has been successfully used in seven hospitals in Italy on over 2,000 individuals who suffer from drug-resistant pain, including pain from cancer, back pain, and cranial pain, as well as sciatic pain. An FDA application has been filed for 510(k) authorization for US sales. The device is being manufactured by CTT licensee GEOMC Co., Ltd. of Korea, formerly Daeyang E&C, for worldwide distribution.
"Several factors earlier in the year also contributed to CTT's improving picture. The settled arbitration with Palatin Technologies, Inc. allowed CTT to reclaim its proper rights to the important sexual dysfunction technology. Our expanded medical strategy includes a license to Percept BioSciences for development of a library of patented attention and cognitive enhancement compounds from our client, the Medical College of Georgia, and an agreement to represent Angioscan's non-invasive early-detection test for breast cancer. We also signed an agreement to represent NTRU in Korea for their suite of products for embedded security software solutions."
Total revenues for the quarter ended April 30, 2008, were approximately $0.2 million, compared to approximately $0.9 million in the same period of the prior year. Revenues for the nine-month period ended April 30, 2008 were $1.0 million compared to $2.7 million in the same period of the prior year. The decrease in total revenues was primarily due to the decrease in retained royalties for homocysteine, partially offset by increased royalties for the sexual dysfunction technology. CTT is currently pursuing litigation against alleged infringers of the homocysteine patent.
Expenses for the quarter ended April 30, 2008 were approximately $1.2 million, a 57% decrease, compared to approximately $2.9 million in the prior year quarter. Expenses for the nine-month period ended April 30, 2008 were approximately $5.8 million, a 38% decrease, compared to $9.4 million for the prior year period.
Mr. Nano continued, "CTT's management team is focused on creating profitable revenue growth from technologies, restoring shareholder value, building global alliances, and maximizing the dynamic opportunities of our technologies. We are aggressively marketing the pain management therapy, breast cancer detection test, MC Square stress reduction device (www.relaxmc.com), solar panels, and UAD surgical prosthetics technologies to drive revenue growth, improve profitability and create shareholder value. Our full technology portfolio may be viewed on our website."
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 made about our future expectations are forward-looking statements and subject to risks and uncertainties as described in our most recent Annual Report on Form 10-K for the year ended July 31, 2007, filed with the SEC on 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 NINE MONTHS FISCAL 2008
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(dollars in thousands, except per share amounts) (unaudited)
Third Quarter Ended Nine Months Ended
April 30, April 30,
2008 2007 2008 2007
---- ---- ---- ----
Revenue $ 238 $ 892 $ 968 $ 2,692
Operating expenses 1,249 2,934 5,838 9,419
Provision for income tax -- -- -- --
------- ------- ------- -------
Net (loss) $(1,011) $(2,042) $(4,870) $(6,727)
======= ======= ======= =======
Net (loss) per share:
Basic and diluted $ (0.12) $ (0.25) $ (0.60) $ (0.84)
======= ======= ======= =======
Weighted average
number of common
shares outstanding:
Basic and diluted (000) 8,180 8,048 8,148 8,018
At April 30, At July 31,
2008 2007
---- ----
Other Financial Data
Cash and cash equivalents $ 2,901 $ 6,572
======= =======
Total assets $ 4,372 $ 9,713
======= =======
Total liabilities $ 1,733 $ 2,114
======= =======
Shareholders' equity $ 2,639 $ 7,599
======= =======