FAIRFIELD, Conn., Oct. 27, 2009 (GLOBE NEWSWIRE) -- Competitive Technologies, Inc. (NYSE Amex:CTT) today announced its outlook for fiscal 2010, and financial results for the fiscal fourth quarter and full year ended July 31, 2009.
"We are at the start of an exciting year with very encouraging sales and profit prospects for our pain therapy medical device, based on current distribution agreements and purchase orders," said John B. Nano, CTT's Chairman, President, and CEO. "We are a nation in pain -- several studies report that nearly 10% of adults in the U.S. suffer from moderate-to-severe pain, with over 50% of that group experiencing chronic or recurrent pain. Our Calmare Therapy Treatment* brings us to the forefront in meeting the needs of patients and improving palliative healthcare globally.
"The global pain management market generated $46.5 billion in sales in 2007, a 12.5% increase over 2006, according to a report published in June of 2009. Globally, pain treatment is coming to the forefront of medical care. For physicians, the ability to help patients with debilitating pain using our non-invasive medical device is an attractive alternative to powerful narcotics. The Calmare Therapy Treatment completely avoids the harmful adverse side effects and addictive properties, with risk of death, linked to narcotic painkillers.
"I am confident that global sales will increase dramatically in fiscal 2010," Mr. Nano continued. "With FDA 510(k) clearance and CE Medical Device approval, sales in the U.S., Europe, and other parts of the globe have accelerated. We currently have distribution agreements in place for over 40 countries, representing over 50% of the world's population, including our newest distributor for sales in Greece and Cyprus. Our Geneva, Switzerland-based distributor Life Episteme Group recently ordered 50 devices, and in the U.S., Rhode Island-based Calmar Pain Relief placed an order this month for 20 devices."
U.S-based clinical studies are underway at several prestigious university medical centers, including the Virginia Commonwealth University Massey Cancer Center, the University of Miami Pain Management Center, and the University of Wisconsin-Madison Carbone Cancer Center. In May 2009, clinical investigators at the Massey Cancer Center began an independent clinical study to examine the ability of CTT's Calmare Therapy Treatment to decrease pain associated with chemotherapy-induced peripheral neuropathy (CIPN), which can be difficult to treat with traditional methods. Early results from the Massey study are quite promising.
The company continues to move in the right direction toward restoring profitability. Management has been diligent about reducing costs and fully expects revenue to grow as sales for the pain therapy medical device and other technologies in the portfolio increase. Strategic actions have decreased expenses over 45% since last year, decreasing from $7.2 million to approximately $3.8 million, reflecting further staff reductions and other cost-cutting measures. Revenue for the year was $0.35 million, compared to $1.2 million for the prior fiscal year. The decrease in revenue was primarily due to lower royalties from both our homocysteine assay and sexual dysfunction technology. Net loss for the full year was $3.5 million or $0.40 per share, compared to a net loss of $6.0 million, or $0.73 per share for the prior year.
An agreement signed in August 2009 with Fusion Capital Fund II, LLC, provides CTT with the option, if needed, to obtain up to $8 million in additional working capital from sales of common stock which could be used for targeted marketing and sales development of high profit potential technologies, including the pain therapy medical device. "Our focus in calendar 2009 and 2010 is to get the Calmare Therapy Treatment more broadly established in the marketplace and aggressively drive sales," said Nano. "When the marketing and distribution mechanisms are firmly in place, we will shift our focus to further developing and commercializing our portfolio of other technologies, including our nanotechnology bone biomaterial, our sexual dysfunction and obesity treatment technologies, a skin-pigment enhancer being researched as a skin cancer preventative, and several innovative technologies currently under evaluation."
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, 2009, filed with the SEC on October 27, 2009, 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.
* The Calmare Therapy Treatment uses Competitive Technologies' MC-5A pain therapy medical device to provide rapid treatment of high-intensity oncologic and neuropathic pain, including pain resistant to morphine and other narcotic painkillers.
COMPETITIVE TECHNOLOGIES, INC.
FOURTH QUARTER AND FULL YEAR FISCAL 2009
CONDENSED CONSOLIDATED RESULTS OF OPERATIONS
(dollars in thousands, except per share amounts)
Fourth Quarter Fiscal Year
Ended July 31, Ended July 31,
2009 2008 2009 2008
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Revenue $ 48 $ 225 $ 348 $ 1,194
Operating expenses 870 1,322 3,828 7,160
Provision for income tax -- -- -- --
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Net (loss) $ (822) $(1,097) $(3,480) $(5,966)
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Net (loss) per share:
Basic and diluted $ (.09) $ (0.13) $ (.40) $ (0.73)
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Weighted average number of
common shares outstanding:
Basic and diluted (000) 9,500 8,180 8,740 8,156
At At
July 31, July 31,
2009 2008
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Other Financial Data
Cash and cash equivalents $ 752 $ 2,237
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Total assets $ 1,401 $ 3,111
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Total liabilities $ 1,116 $ 1,518
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Shareholders' equity $ 285 $ 1,593
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