Patriot Scientific Says Licensing Agreements Result in Quarterly Profit
Thursday March 31, 4:01 pm ET
SAN DIEGO, March 31 /PRNewswire-FirstCall/ -- Patriot Scientific Corporation (OTC Bulletin Board: PTSC - News) announced today results for the third quarter and nine months ended February 28, 2005. Revenue for the third fiscal quarter ended February 28, 2005 was approximately $2.9 million, up from revenue of $3,384 for the period ended February 29, 2004. Net income for the third quarter was approximately $600,000, or $0.00 per diluted share, compared to a net loss for the third quarter of fiscal 2004 of $975,894, or $0.01 per share.
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Revenue for the nine months ended February 28, 2005 was approximately $2.9 million, up from revenue of $66,584 for the nine months ended February 29, 2004. Net loss for the nine months ended February 28, 2005 was approximately $1.5 million, or $0.01 per share, compared to a net loss of $3,001,231, or $0.02 per share, for the nine months ended February 29, 2004.
Jeff Wallin, president and CEO of Patriot Scientific, said, "This quarterly profit resulted from licensing agreements for our microprocessor patent portfolio of seven issued patents and our core technology, the IGNITE microprocessor. The patent portfolio license was the first granted under our focused strategy to assure that users of our technology remunerate Patriot. The positive net income in the quarter was negatively impacted by $1.2 million in interest charges. However, as a result of the cash flow from the licensing agreements, we expect to eliminate the need for financings with high interest costs and resultant dilution. For the nine months, an interest charge of $2.4 million accounted for the $1.5 million loss. At the end of the quarter, we had over $1 million in cash and short-term investments, $2.7 million in license fees receivable and approximately $3 million of working capital.
"We are accelerating our licensing policy, which we anticipate will result in additional licensing or settlement fees," Wallin continued. "We also are pursuing our current litigation (Case Number C040439), in which we claim full ownership of one of the more significant patents in the portfolio. Recently, Judge Fogel of the U.S. District Court for the Northern District of California issued an order disqualifying our counsel and prohibiting the testimony of our original patent prosecution attorney. We are currently interviewing alternative counsel to continue the case following a reconsideration motion denied by Judge Fogel."
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