Calmare Therapeutics Inc (fka CTTC)

[eaglesurvivor]

It could have been worse; at least they had the decency to release before the open of the market, rather than the 4:10 tactic.
Competitive Technologies, Inc. Reports Third Quarter Fiscal 2006 Results
FRIDAY, JUNE 09, 2006 7:30 AM - BusinessWire

FAIRFIELD, Conn., Jun 09, 2006 (BUSINESS WIRE) -- Competitive Technologies, Inc. (CTT) today announced a net loss of $1.1 million, or $0.14 per share, for its fiscal third quarter ended April 30, 2006. This compares to net income of $0.4 million, or $0.05 per diluted share, for the third quarter of the prior fiscal year. For the nine months ended April 30, 2006, we incurred a net loss of approximately $2.0 million, or $0.27 per share, compared to net income during the same period of the prior year of approximately $5.3 million, or $0.73 per diluted share.

Retained royalties for the quarter ended April 30, 2006, were approximately $1.0 million, a decrease of $1.1 million, or 50%, compared to approximately $2.1 million of retained royalties for the same period in the prior year. Retained royalties for the prior year included an aggregate of approximately $0.8 million from the settlement of back royalties relating to an expired license, and upfront license fees relating to new homocysteine testing licenses granted in the prior year. Excluding these items, retained royalties for the quarter ended April 30, 2006, would have decreased $0.2 million, or approximately 19% over the same period of the prior year, due to timing of receipts on one license, and a decrease in the number of homocysteine assays sold by one large licensee. Total revenues for the quarter ended April 30, 2006, were approximately $1.2 million, compared to approximately $2.5 million in the same period of the prior year, due to the decrease in retained royalties, and the absence in the current year of legal awards and dividends, as happened in the prior year, partially offset by an increase in interest income due to higher interest rates and higher average cash balances in the current quarter compared to the prior year quarter.

Expenses overall were flat for the quarter ended April 30, 2006, compared to the prior year quarter. Personnel and other direct expenses related to revenues increased approximately $0.2 million. General and administrative expenses decreased approximately $0.4 million compared to the prior year, principally due to a decrease in legal costs incurred in the prior year to defend the company against a whistleblower claim that was later dismissed, and a reduction in costs related to the documentation, testing and audit of internal controls required pursuant to Section 404 of the Sarbanes-Oxley Act of 2002. Patent enforcement expenses, net of reimbursements, increased approximately $0.3 million compared to the prior year, principally due to net costs incurred in defense of our homocysteine patent at the U.S. Supreme Court.

"We are focused on our goal of significantly growing our recurring revenues. To accomplish our goal, we first need to increase our portfolio of available technologies, and must continually bring in new technology to keep our pipeline full," said Michael D. Davidson, CTT's Vice President and Chief Financial Officer. "Prior to the formation of the current management team, not enough new technologies were acquired, and we are paying for this now. But we are aggressively pursuing new technology and have added staff to accelerate this process. We expect our efforts to pay off within the next eighteen to thirty-six months."

Dr. D. J. Freed, CTT's President and Chief Executive Officer added, "Due to our long revenue cycle, which we estimate to be two to three years from technology sign-up to recurring revenue, it is important that we stay active on both the acquisition and licensing sides of our business. This was a significant past weakness in our operations that we identified and we have made, and are continuing to make, the investments that we believe are needed to secure our Company's future. These investments have cost us in the short term, but we believe that they will be well worth it over time. Our strong balance sheet means that we won't sacrifice our long-term goals for short term results. We are optimistic that the people we have, and our strategic plans will be successful."

Retained royalties for the nine months ended April 30, 2006, were approximately $3.4 million, compared to approximately $9.5 million in the prior year. The principal reason for the decrease in retained royalties was upfront license fees received on homocysteine licenses granted in the prior year that did not recur in the same magnitude in the current year, and the settlement in the prior year of the back royalties described above. Total revenues for the nine months ended April 30, 2006, were approximately $3.8 million, compared to approximately $11.7 million for the same period of the prior fiscal year. In addition to the decrease in retained royalties, during the prior year period an aggregate of approximately $1.8 million of revenue was received from legal awards and two dividends from one of our investments, neither of which recurred in the current year.

Total expenses for the nine months ended April 30, 2006, decreased $0.5 million, to approximately $5.9 million from approximately $6.4 million incurred during the same period of the prior year. Personnel and other direct costs decreased approximately $0.9 million, principally due to less commission and bonus accrued in the current year compared to the prior year, partially offset by increased costs related to the addition of new business development staff. General and administrative expenses increased approximately $0.3 million compared to the prior year, principally due to an increase in legal costs related to claims filed against us by our former President and Chief Executive Officer, and costs related to our claim filed against him for damages for breach of contract, breach of fiduciary duty, statutory theft and other claims. Patent enforcement expenses, net of reimbursements, increased approximately $0.1 million.

CTT will hold a conference call at 11:00 a.m. EDT on June 9, 2006 to discuss results and provide a strategic overview. Investors and others are invited to listen to the broadcast live and ask questions by dialing in at [phone] (U.S./Canada) or [phone] (International). The call will be web cast live over the Internet at http://www.competitivetech.net in the Investor Relations section. A replay of the call will be available the following day on our website.