FAIRFIELD, Conn., June 15, 2009 (GLOBE NEWSWIRE) -- Competitive Technologies, Inc. (NYSE Amex:CTT) today announced financial results for the third quarter fiscal 2009, ending April 30, 2009.
Expenses were substantially reduced for the fiscal first nine months ended April 30, 2009, decreasing 48% to approximately $3.0 million, compared to approximately $5.8 million for the prior year nine months. Expenses for the third quarter fiscal 2009 declined 25% to $0.9 million from $1.2 million for the prior year period.
"We continue to reduce our costs and expect revenue to grow as we progress with our aggressive sales program for the pain management medical device and other products and technologies," said John B. Nano, CTT's Chairman, President and CEO. "After the quarter end, we completed medical device retail sales of about $0.4 million and expect our sales to accelerate as the rollout process grows.
"Our device has been reviewed in three medical publications and has been successfully tested in research studies in India with over 90% effectiveness and in Italy with over 80% effectiveness. The device is currently in an independent research study at the Virginia Commonwealth University Massey Cancer Center. The study will examine the ability of CTT's U.S. FDA-cleared device to decrease pain associated with chemotherapy-induced peripheral neuropathy (CIPN)."
CTT has exclusive worldwide rights to this patented medical device, a non-invasive method for rapid treatment of high-intensity oncologic and neuropathic pain, including pain resistant to morphine and other drugs. For more information on the device, visit www.CalmareTT.com.
Total revenue for the fiscal third quarter ended April 30, 2009, was approximately $0.2 million, equal to approximately $0.2 million in the same period of the prior year. Revenue for the nine-month period ended April 30, 2009 was $0.3 million compared to $1.0 million in the same period of the prior year. The nine-month revenue decline resulted from lower royalties this year where technology patents expired last year and a onetime payment in the prior year.
Contractual minimums in the signed distribution agreements for the device have a retail sales value of over $25 million for 2009 and about $50 million for 2010. CTT will share in revenue derived from sales of the device to distributors. In February 2009, CTT received FDA 510(k) clearance for U.S. sales of the device. The device's European CE mark certification allows it to be distributed and sold throughout Europe, and makes it eligible for approval for distribution and sales in multiple global markets. The signed distribution agreements for this device now cover over 48% of the world's population.
Mr. Nano noted, "The licensee for our nanoparticle bone biomaterial for human spinal applications, Soteira Inc., completed a third fund raise for a total of approximately $24 million in cumulative financing with access to an additional $6 million. Soteira is seeking US FDA and European CE Mark clearance for the bone biomaterial. CTT has an exclusive agreement with the University of South Carolina Research Foundation (USCRF) to commercialize the injectable, flowable, fast-curing, calcium phosphate-based nanotechnology biomaterial developed by Dr. Brian R. Genge, a research professor in the Department of Chemistry and Biochemistry at USC. We are currently pursuing licensing opportunities for other human and animal applications of this technology."
The net loss for the quarter is approximately $0.8 million, or $0.09 per share, a 20% improvement over the net loss of approximately $1.0 million, or $0.12 per share, for the prior year quarter. The net loss for the nine-month period ending April 30, 2009 is $2.7 million, or $0.31 per share, a 45% improvement over the net loss of approximately $4.9 million, or $0.60 per share, for the prior-year period.
In July 2008, CTT signed an equity financing arrangement with Fusion Capital for up to $5.0 million of cash through sale of CTT common stock, at CTT's option. Of the $5.0 million, $4.0 million remained available at April 30, 2009.
CTT has announced the development of a financing unit, Competitive Technologies Financial Services (CFS), which offers customers opportunities for leasing of CTT's pain therapy medical device in the U.S. market. The establishment of CFS allows U.S. hospitals, clinics and medical practices to purchase the device directly, or to lease it over periods of time ranging from 24 - 60 months. In this difficult economic climate, CFS, created through an agreement with Americorp Financial, LLC (AFS), allows greater flexibility for these customers in managing their organization's cash flow. Upon execution of each lease, CTT will receive the full sales price of the device, while AFS carries the lease.
Mr. Nano continued, "As the pain management medical device attains mature market levels, we believe it will reach approximately $200 million per year in distributor sales to hospitals and clinics. At that time, our revenue and profits from the device will dramatically exceed those produced by any other technology in CTT's 40-year history, resulting in approximately $20 million per year to CTT, with limited related costs. CTT is aware of the needs expressed worldwide for treatment of pain, and is pleased to be part of the solution as we aggressively market the device to meet those needs. There is exciting potential for the success of this device in the global pain management market; a market estimated to reach $40 billion by 2010."
"CTT's management team is focused on creating profitable revenue growth, restoring shareholder value, building global alliances, and maximizing the dynamic opportunities of our products and technologies."
About Competitive Technologies, Inc.
Competitive Technologies, established in 1968, provides distribution, patent and technology transfer, sales and licensing services focused on the needs of its customers and matching those requirements with commercially viable product or technology solutions. CTT is a global leader in identifying, developing and commercializing innovative products and 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, 2008, filed with the SEC on October 28, 2008, 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 2009
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(dollars in thousands, except per share amounts) (unaudited)
Third Quarter Nine Months
Ended April 30, Ended April 30,
2009 2008 2009 2008
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Revenue $ 167 $ 238 $ 300 $ 968
Operating expenses 924 1,249 2,957 5,838
Provision for income tax -- -- -- --
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Net (loss) $ (757) $(1,011) $(2,657) $(4,870)
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Net (loss) per share:
Basic and diluted $ (0.09) $ (0.12) $ (0.31) $ (0.60)
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Weighted average number
of common shares
outstanding:
Basic and diluted (000) 8,815 8,180 8,486 8,148
At April 30, At July 31,
2009 2008
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Other Financial Data
Cash and cash equivalents $ 374 $ 2,237
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Total assets $ 1,318 $ 3,111
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Total liabilities $ 1,044 $ 1,518
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Shareholders' equity $ 274 $ 1,593
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