NEW YORK--May 13, 2002-- TTR Technologies, Inc. (NASDAQ NM: TTRE; Berlin TEJ), a leading developer of digital anti-piracy technologies, today reported a loss for the first quarter, ended March 31, 2002.
For the three months ended March 31, the company reported an operating loss (not including non-cash stock-based compensation charges and the accrual for the severance of its former chief operating officer) of $865,143 compared to an operating loss of $930,467 in the fourth quarter of 2001 and $1,266,340 for the same period in 2001. The company's net loss for the period was $950,152, or $0.05 per basic and diluted share, compared to a net loss of $1,291,867, or $0.07 per basic and diluted share, for the 2001 period.
TTR had no revenues in the quarter. Cash and short-term investments at March 31, 2002, were $3.96 million. The company has no long-term debt.
TTR recently restructured its management team and moved its headquarters to New York from Israel. Daniel C. Stein, TTR's new chief executive officer, commented, “I am very excited to be joining the TTR team and believe the company is in position to become a major market force in digital security technologies.” Marc Tokayer, chairman and president of TTR, added, “It was crucial to expand management in the United States and move corporate headquarters to New York to support expanded business activity in our new areas of development, as well as become more accessible to our investors and shareholders.”
Conference Call Information
As previously announced, TTR will host a conference call at 9:00 a.m. Eastern Standard Time tomorrow, May 14, 2002, to review first-quarter results and recent developments. The dial-in number for the call is 646-862-1043. 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 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 May 24 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®, 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” 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.
Contacts:
The Company Investor Relations Media Contact
Samuel Brill Erica Catanzareti Stan Froelich
Chief Operating Officer L.G. Zangani, LLC Stern & Co.
(212) 527-7597 (908) 788-9660 (212) 888-0044
samb@ttrtech.com serica@zangani.com sfroelich@sternco.com
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TTR TECHNOLOGIES INC. AND ITS SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
2002 2001
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $ 3,962,385 $ 4,915,269
Accounts receivable - -
Note receivable 130,000 130,000
Prepaid expenses and other current assets 161,012 155,156
Total current assets 4,253,397 5,200,425
Property and equipment – net 201,832 201,453
Investment in ComSign, Ltd. 1,019,088 1,145,519
Other assets 6,300 3,550
Total assets $ 5,480,617 $ 6,550,947
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Current liabilities
Accounts payable $ 184,145 $ 151,400
Accrued expenses 430,083 553,408
Total current liabilities 614,228 704,808
Accrued severance pay 376,883 429,922
Total liabilities 991,111 1,134,730
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
17,593,896 issued and outstanding, 17,594 17,594
respectively
Additional paid-in capital 40,526,583 40,340,966
Other accumulated comprehensive income 28,978 36,934
Deficit accumulated during the development (36,075,830) (35,125,678)
stage
Less: deferred compensation (7,819) (39,216)
Total stockholders' equity 4,489,506 5,416,217
Total liabilities and stockholders' equity $ 5,480,617 $ 6,550,947
TTR TECHNOLOGIES INC. AND ITS SUBSIDIARY
(A DEVELOPMENT STAGE COMPANY)
CONSOLIDATED STATEMENT OF OPERATIONS
3 Months From Inception
Ended (July 14, 1994)
to
March 31, March 31,
2002 2001 2002
(Unaudited) (Unaudited) (Unaudited)
Revenue $ - $ - $ 125,724
Expenses
Research and development (1) 260,459 181,051 5,262,961
Sales and marketing (1) 91,634 109,702 4,389,605
General and administrative (1) 481,653 674,251 8,502,473
Stock-based compensation 31,397 301,336 11,395,806
Total expenses 865,143 1,266,340 29,550,845
Operating loss (865,143) (1,266,340) (29,425,121)
Other (income) expense
Legal settlement - - 232,500
Loss on investment - - 17,000
Other income - - (75,000)
Net losses of affiliate 105,747 135,694 932,994
Amortization of deferred financing costs - - 4,516,775
Interest income (21,220) (111,348) (883,647)
Interest expense 482 1,181 1,910,087
Total other (income) expenses 85,009 25,527 6,650,709
Net loss $ (950,152) $(1,291,867) $ (36,075,830)
Per share data:
Basic and diluted $ (0.05) $ (0.07)
Weighted av. no. of common shares used
in basic and diluted loss per share 17,593,896 17,361,452
(1) Excludes non-cash, stock-based compensation expense as follows:
Research and development $ - $ - $ 456,239
Sales and marketing 30,587 6,563 5,336,558
General and administrative 810 294,773 5,603,009
$ 31,397 $ 301,336 $ 11,395,806 |
