TTR Technologies Reports Fourth-Quarter Loss
NEW YORK--(BUSINESS WIRE)--March 4, 2002--TTR Technologies, Inc. (Nasdaq NM: TTRE), a leading developer of digital anti-piracy technologies, today reported a loss for the fourth quarter and full year 2001, ended December 31, 2001.
The company's net loss for the period was $1,574,916, or $0.09 per basic and diluted share, which included a $437,000 accrual to cover the severance costs of the company's former chief operating officer, as compared to a net loss of $993,163, or $0.06 per basic and diluted share for the same period in 2000. For the three months ended December 31 2001, the company reported an operating loss (not including non-cash stock-based compensation charges and the accrued severance for its former chief operating officer) of $930,467 compared to an operating loss of $932,749 in the third quarter of 2001 and $557,144 for the fourth quarter of 2000. TTR had no revenues in the fourth quarter or the calendar year. Cash and short-term investments at December 31, 2001, were $4.9 million. The company has no long-term debt.
For the year, the net loss was $5,498,637, or $0.31 per basic and diluted share, compared to a net loss of $4,796,693, or $0.30 per basic and diluted share.
TTR and its strategic alliance partner, Macrovision Corporation (Nasdaq: MVSN), have released SAFEAUDIO(TM) Version 3 to the major recording labels for testing. The new version was designed to address issues raised during initial testing by the labels.
Marc Tokayer, chairman and chief executive officer, commented, "We are continuing to make progress in marketing our SAFEAUDIO(TM) product and are in the final stages of our efforts to sign our first commercial agreement with a major studio.
"ComSign Ltd., a 50% subsidiary of the company, 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. ComSign has made progress in working on pilot projects with major business and governmental entities in Israel."
Conference Call Information
As previously announced, TTR will host a conference call at 9:00 a.m. Eastern Standard Time tomorrow, March 5, 2002, to review fourth-quarter results and recent developments. The dial-in number for the call is 212-341-7081. A live Webcast 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 those Web sites for 90 days. A replay via telephone will be available until March 15 and can be accessed by dialing 800-633-8284 (858-812-6440 outside the U.S.), access code #20391223.
About TTR Technologies, Inc.
TTR (http://www.ttrtech.com) 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. In addition to developing SAFEAUDIO(TM), TTR is investing in infrastructure and security solutions for the DVD-ROM market. TTR has a joint development and marketing agreement for music CD copy protection with Macrovision Corporation (Nasdaq: MVSN). The company also owns 50% of ComSign Ltd., the exclusive Israeli affiliate of VeriSign, Inc. (Nasdaq: VRSN). TTR's shares are listed on the Berlin Stock Exchange (TEJ) and the Nasdaq National Market (TTRE).
Forward-Looking Statements
All statements contained herein, as well as oral statements that may be made by the Company or by officers, directors or employees of the Company acting on the Company's behalf, that are not statements of historical fact, constitute "forward-looking statements" and are made pursuant to the Safe-Harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. Such risks and uncertainties are outlined in the Company's Annual Report on Form 10-K for 2000, its Quarterly Reports on Form-10Q, and such other documents as are filed with the Securities and Exchange Commission from time to time. The Company is not obligated to revise or update any forward-looking statements in order to reflect events or circumstances that may arise after the date of this release.
TTR TECHNOLOGIES INC. AND ITS SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2001 2000
---- ----
ASSETS
Current assets
Cash and cash equivalents $ 4,915,269 $ 8,234,686
Accounts receivable - 1,019
Note receivable 130,000 -
Prepaid expenses and
other current assets 155,156 101,208
------------- -------------
Total current assets 5,200,425 8,336,913
Property and equipment - net 201,453 220,957
Investment in ComSign, Ltd. 1,145,519 1,790,843
Other assets 3,550 -
------------- -------------
Total assets $ 6,550,947 $ 10,348,713
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Current liabilities
Accounts payable $ 151,400 $ 46,726
Accrued expenses 553,408 167,731
------------- -------------
Total current liabilities 704,808 214,457
Accrued severance pay 429,922 137,299
------------- -------------
Total liabilities 1,134,730 351,756
------------- -------------
STOCKHOLDERS' EQUITY
Preferred Stock, $.001 par value;
5,000,000 shares authorized;
none issued and outstanding - -
Common stock, $.001 par value;
50,000,000 shares authorized;
17,593,896 and 17,356,340
issued and outstanding, respectively 17,594 17,357
Additional paid-in capital 40,526,583 40,340,966
Other accumulated comprehensive income 36,934 46,246
Deficit accumulated during
the development stage (35,125,678) (29,627,041)
Less: deferred compensation (39,216) (780,571)
------------- -------------
Total stockholders' equity 5,416,217 9,996,957
------------- -------------
Total liabilities and
stockholders' equity $ 6,550,947 $ 10,348,713
============= =============
TTR TECHNOLOGIES INC. AND ITS SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENT OF OPERATIONS
12 Months Ended Three Months Ended
December 31, December 31,
2001 2000 2001 2000
---- ---- ---- ----
Revenue $ - $ 1,999 $ - $ -
Expenses
Research and
development (1) 949,766 1,111,889 287,085 175,881
Sales and
marketing (1) 399,523 579,006 97,837 85,468
General and
administrative (1) 2,894,616 1,785,434 982,545 295,795
Stock-based
compensation 909,819 1,631,649 124,604 428,857
------------ ----------- ---------- ----------
Total expenses 5,153,724 5,107,978 1,492,071 986,001
------------ ----------- ---------- ----------
Operating loss (5,153,724) (5,105,979) (1,492,071) (986,001)
Other (income) expense
Net losses
of affiliate 618,090 209,157 111,647 134,852
Interest income (276,179) (524,253) (29,391) (128,027)
Interest expense 3,002 5,810 589 337
------------ ----------- ---------- ----------
Total other (income)
expenses 344,913 (309,286) 82,845 7,162
------------ ----------- ---------- ----------
Net loss $(5,498,637) $(4,796,693) $(1,574,916) $(993,163)
============ =========== ========== ==========
Per share data:
Basic and diluted $ (0.31) $ (0.30) $ (0.09) $ (0.06)
============ =========== ========== ==========
Weighted av. no. of
common shares used
in basic and diluted
loss per share 17,560,013 16,006,403 17,593,896 16,934,164
============ =========== ========== ==========
(1) Excludes non-cash,
stock-based
compensation expense
as follows:
Research and
development $ - $ 230,258 $ - $ -
Sales and
marketing 261,463 78,732 122,352 19,668
General and
administrative 648,356 1,322,659 2,252 409,189
------------ ----------- ---------- ----------
$ 909,819 $ 1,631,649 $ 124,604 $ 428,857
============ =========== ========== ==========
CONTACT:
TTR Technologies, Inc.
Matthew L. Cohen, 212/527-7599
matthewc@ttrtech.com
or
Investor Relations
L.G. Zangani, LLC
Erica Catanzareti, 908/788-9660
erica@zangani.com
or
Media
Stern & Co.
Stan Froelich, 212/888-0044
sfroelich@sternco.com
KEYWORD: NEW YORK
BW2671 MAR 04,2002
14:37 PACIFIC
17:37 EASTERN |
