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TTR Technologies Reports Fourth Quarter 2000 and Recent Developments
NEW YORK--(BUSINESS WIRE)--March 15, 2001--TTR Technologies, Inc., (NASDAQ NM:TTRE), (TTR), a leading developer of digital anti-piracy technologies, today reported on recent developments at the Company, particularly its progress toward commercialization of its CD copy protection technology.
TTR's recent milestones include:
- A major record label has successfully completed an initial beta
test of TTR's and Macrovision Corporation's (Nasdaq:MVSN)
SafeAudio(TM) Toolkit. SafeAudio protects against the illegal
replication of audio content on CDs.
- TTR's 50%-owned subsidiary, ComSign, the exclusive Israeli
marketer of Verisign, Inc.'s (Nasdaq:VRSN) digital authentication
certificates, achieved a very successful commercial launch.
- The Company increased its visibility and expanded its reach within
the investment community by moving to the Nasdaq National Market.
Marc Tokayer, chairman and chief executive officer, commented, "We are very pleased with the progress we and our strategic alliance partner, Macrovision, are making in bringing our SafeAudio(TM) anti-piracy product to market. The music industry, which is losing billions of dollars annually to unauthorized copying, has been showing great interest in SafeAudio and is moving the process of adopting our technology forward. We believe our goal of executing at least one contract with a major label company in 2001 is very viable. We are also pleased with the Company's progress in its other business segments."
CD Copy Protection
A major record label has successfully completed an initial beta test of the SafeAudio(TM) Toolkit for CD audio copy protection. The SafeAudio Toolkit enables the copy protection preparation of a master CD to be done within the mastering facility on existing replication equipment, in essence automating the copy protection process. The test was conducted by the record label in advance of initiating a round of internal testing for the SafeAudio technology itself.
DVD and Internet Copy Protection
TTR is continuing to leverage its existing copy protection technology by developing a means of protecting against DVD piracy. The only technology currently available to prevent illegal copies of DVD content prevents piracy from DVD to VHS format. Mr. Tokayer commented, "We expect DVD to DVD piracy to become a major concern for content producers and manufacturers as DVD players and DVD recorders become increasingly available and affordable. In October we developed a prototype that addresses the requirements of all three DVD content types -- video, audio and DVD-ROM (software). We are now expanding on the prototype and working to ensure that it is compatible with the encoding devices."
TTR is also exploring new technologies to facilitate the speedy transmission of content via the Internet. The Company recently hired Yehuda Hahn as Vice President for Internet Technologies to lead this effort, which includes facilitating technology for video streaming, an especially promising market.
Digital Authentication
TTR's third business segment, ComSign, a 50% owned subsidiary of the Company, was successfully launched and is rapidly establishing itself as the dominant player in its market in Israel. ComSign is the exclusive Israeli marketer of VeriSign Inc.'s (Nasdaq:VRSN) digital authentication certificates for business, governmental and other entities that need to undertake secure transactions over the Internet. Its customers include some of the largest banks, insurance companies, government agencies and software companies in Israel. Mr. Tokayer commented, "ComSign is now the leading provider of Internet trust services in Israel. While its revenue base is still modest, its success illustrates TTR's ability to identify and successfully develop good business opportunities. We are very pleased with ComSign's progress to date and expect the company to continue its consistent growth in 2001."
Mr. Tokayer concluded, "TTR is continuing its steady evolution from a development stage company to a revenue producing entity. Our core SafeAudio business is developing according to plan and our financial position is strong. The Company met Nasdaq's listing requirements and moved to the National Market on February 6, 2001, another indication of the headway we are making. In summary, the future looks bright for TTR as we continue moving to our primary goal of commercializing SafeAudio and as we develop other promising lines of business in the fields of anti-piracy and video streaming."
Financial Results
For the period, the Company reported an operating loss, excluding stock based compensation charges, of $557,000 compared to $698,000 for the same period in 1999 and $851,000 for the third quarter of 2000. Cash and short-term investments at December 31, 2000 were $8,230,000. The Company had no long-term debt.
For the year ended December 31, 2000, the net loss was $4.8 million, or $0.30 per share, compared to a net loss of $13.1 million, or $2.07 per share, for 1999.
Conference Call Information
TTR will host a conference call at 9:00 a.m. Eastern Standard Time on Thursday, March 15, 2001 to review fourth quarter developments. The dial-in number for the call is (212) 676-5271. A live web cast of the conference call will be available to all investors at the TTR Technologies web site located at www.ttrtech.com. The call will also be simulcast at www.vcall.com. For those who cannot listen to the live broadcast, an audio replay of the call will be available on these web sites for 90 days. A replay via telephone will be available for seven days beginning at 11:00 a.m. ET on March 15, 2001. To access the replay, please dial 800-633-8284 or (outside the U.S.) 858-812-6440, reservation #18175310.
TTR Technologies, Inc.
TTR Technologies, Inc., designs, markets and sells proprietary anti-piracy products. The Company has developed and commercialized products for the software and entertainment industries and is expanding its product range and reach through in-house development and joint ventures. TTR has a joint development and marketing agreement for music CD copy protection with Macrovision Corporation (Nasdaq:MVSN). For more information about TTR Technologies, visit ttrtech.com.
Forward-Looking Statement
Any statements released by TTR Technologies, Inc. that are forward looking are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward looking statements involve risks and uncertainties which may affect the Company's business and prospects, including economic, competitive, government, technological and other factors discussed in the Company's filings with the Securities and Exchange Commission.
TTR TECHNOLOGIES, INC. AND ITS SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended
December 31,
2000 1999
---- ----
Revenue $ 1,999 $ 68,803
Expenses
Research and development 1,111,889 345,989
Sales and marketing 579,006 815,586
General and administrative 1,785,434 630,090
Stock based compensation 1,631,649 6,152,587
--------- ---------
Total expenses 5,107,978 7,944,252
--------- ---------
Operating loss (5,105,979) (7,875,449)
Other (income) expense
Net losses of affiliate 209,157 --
Amortization of deferred
financing costs -- 4,180,540
Interest income (524,253) (3,689)
Interest expense 5,810 1,019,937
--------- ---------
Total other (income) expenses (309,286) 5,196,788
--------- ---------
Net loss $ (4,796,693) $ (13,072,237)
Per share data
Basic and diluted $ (0.30) $ (2.07)
============= ==============
Weighted average number of
common shares used in basic
and diluted loss per share 16,006,403 6,321,719
============= ==============
TTR TECHNOLOGIES, INC. AND ITS SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2000 1999
---- ----
ASSETS
Current assets
Cash and cash equivalents $ 8,234,686 $ 209,580
Accounts receivable 1,019 10,103
Prepaid expense and other
current assets 101,208 38,630
--------- ---------
Total current assets $ 8,336,913 $ 258,313
Property and equipment - net 220,957 205,854
Investment in ComSign, Ltd. 1,790,843 --
Other assets -- 3,700
--------- ---------
Total assets $ 10,348,713 $ 467,867
============= ===============
LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT)
LIABILITIES
Current liabilities
Current portion of long-term debt -- 7,764
========= =========
Accounts payable 46,726 409,521
Accrued expenses 167,731 335,772
--------- ---------
Total current liabilities 214,457 753,057
Long-term debt, less current portion -- 8,219
Accrued severance pay 137,299 37,587
--------- ---------
Total liabilities $ 351,756 $ 798,863
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY (DEFICIT)
Preferred Stock, $.001 par value;
5,000,000 shares authorized;
none issued and outstanding -- --
Common stock, $.001 par value
50,000,000 shares authorized;
10,653,560 and 17,356,340
issued and outstanding,
respectively 17,357 10,654
Additional paid-in capital 40,340,966 24,710,602
Other accumulated
comprehensive income 46,246 56,971
Deficit accumulated during
the development stage (29,627,041) (24,830,348)
Less: deferred compensation (780,571) (278,875)
----------- -----------
Total stockholders'
equity (deficit) 9,996,957 (330,996)
--------- ---------
Total liabilities and
stockholders' equity
(deficit) $ 10,348,713 $ 467,867
============= ===============
CONTACT:
TTR Technologies
Emanuel Kronitz, Chief Operating Officer
011 972-9-766-2393
kronitz@ttrtech.com
or
Lippert/Heilshorn & Assoc.
Investor Relations: Harriet Fried/Klea Theoharis
212/838-3777
harriet@lhai.com
or
Lippert/Heilshorn & Assoc.
Media: Chenoa Taitt
212/838-3777
chenoa@lhai.com
KEYWORD: NEW YORK
BW2062 MAR 15,2001
4:30 PACIFIC
7:30 EASTERN |
