-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UtnRQkbgVPk+vO+SeP7Tebjh6njy+X8i2OKfSxIprIktyBAkkJYuuhGoiG3tZm6R ZK/wGk+QgHQX7eDVNuGMNw== 0000910680-03-000752.txt : 20030818 0000910680-03-000752.hdr.sgml : 20030818 20030818165438 ACCESSION NUMBER: 0000910680-03-000752 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030813 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030818 FILER: COMPANY DATA: COMPANY CONFORMED NAME: CELLULAR TECHNICAL SERVICES CO INC CENTRAL INDEX KEY: 0000876378 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-COMPUTER INTEGRATED SYSTEMS DESIGN [7373] IRS NUMBER: 112962080 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-19437 FILM NUMBER: 03853621 BUSINESS ADDRESS: STREET 1: 2815 SECOND AVENUE STREET 2: SUITE 100 CITY: SEATTLE STATE: WA ZIP: 98121 BUSINESS PHONE: 2064436400 MAIL ADDRESS: STREET 1: 2815 SECOND AVENUE STREET 2: SUITE 100 CITY: SEATTLE STATE: WA ZIP: 98121 8-K 1 form8k-08132003.txt 08/13/2003 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ______________ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): August 13, 2003 CELLULAR TECHNICAL SERVICES COMPANY, INC. - -------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) Delaware 0-19437 11-2962080 (State or Other Jurisdiction (Commission (IRS Employer of Incorporation) File No.) Identification No.) 2815 Second Avenue. Suite 100, Seattle, Washington 98121 - -------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code: (206) 443-6400 Not Applicable - -------------------------------------------------------------------------------- (Former Name or Former Address, if Changed Since Last Report) ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS. (a) Exhibits -------- 99.1 Press Release dated August 13, 2003 ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION Cellular Technical Services Company, Inc., announced its second quarter financial results for 2003 on August 13, 2003. SIGNATURES ---------- Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: August 18, 2003 CELLULAR TECHNICAL SERVICES COMPANY, INC. By: /s/ Bruce York ---------------------------------------- Name: Bruce York Title: Vice President and Chief Financial Officer EXHIBIT INDEX ------------- EXHIBIT NO. DESCRIPTION ----------- ----------- 99.1 Press Release dated August 13, 2003 EX-99 3 exh99-1.txt 99.1 EXHIBIT 99.1 CELLULAR TECHNICAL SERVICES REPORTS 2003 SECOND-QUARTER RESULTS Seattle, August 13, 2003 - Cellular Technical Services Company, Inc. (OTC Symbol: CTSC.OB) ("CTS"), today reported its second quarter financial results for 2003.
- ---------------------------- ---------------------- --------------------- -------------------- ------------------ (IN 000'S EXCEPT PER SHARE THREE MONTHS ENDED THREE MONTHS ENDED SIX MONTHS ENDED SIX MONTHS ENDED AMOUNTS) JUNE 30,2003 JUNE 30,2002 JUNE 30, 2003 JUNE 30, 2002 - ---------------------------- ---------------------- --------------------- -------------------- ------------------ Revenue $13 $3,331 $171 $5,689 - ---------------------------- ---------------------- --------------------- -------------------- ------------------ Net Loss ($ 305) ($ 998) ($ 680) ($ 1,981) - ---------------------------- ---------------------- --------------------- -------------------- ------------------ Net Loss Per Share (basic ($0.13) ($0.44) ($0.30) ($0.86) and diluted) - ---------------------------- ---------------------- --------------------- -------------------- ------------------
Revenue decreased to $171,000 in the first half of 2003 from $5.7 million in the first half of 2002. CTS reported a quarterly net loss of $305,000 compared to $998,000 in the second quarter of 2002. The $0.7 million reduction in the net loss for the second quarter of 2003 is primarily due to across-the-board operating expense reductions resulting from the cessation of expenses related to prior Neumobility R&D efforts and ISIS phonecard operations, both of which were closed in late 2002. Steve Katz, CTS Chairman and CEO noted, "At June 30, 2003 we had $2.7 million in working capital and no debt. We are continuing to evaluate business alternatives including several investment opportunities. Today we have one full-time employee remaining. For the remaining six months of 2003, we forecast incurring a total of approximately $0.5 million in expenses including remaining non-cancelable office leases, depreciation, compensation, costs of maintaining the business as a public entity and insurance. We anticipate that approximately one-third of the remaining expenses will be non-cash expenses (prepaid prior to Q3 or depreciation) and also anticipate approximately $0.2 million in cash receipts on our outstanding note from GTS Prepaid." SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS: This press release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties that could cause actual results for CTS or its affiliates to differ materially from those expressed or implied in the applicable statements. These risks and uncertainties include but are not limited to: CTS' ability to acquire or develop future business operations; the uncertainty of its ability to gain acceptance of any new products or services, if such are acquired or developed; the competition for business opportunities and the ability of competitors who are larger or better financed than CTS to acquire such opportunities in lieu of CTS; vulnerability to specific factors such as technological obsolescence, limited customer base and manufacturing difficulties, all of which may be dependent upon the nature of any specific acquisition or development by CTS; dependence on key personnel; the availability of financing; and other risks described in CTS' filings with the Securities and Exchange Commission. -### - CELLULAR TECHNICAL SERVICES COMPANY, INC. ----------------------------------------- SELECTED CONSOLIDATED BALANCE SHEET DATA ---------------------------------------- (in 000's) ----------------------------- ------------------- --------------------- June 30, 2003 December 31, 2002 ----------------------------- ------------------- --------------------- Cash $2,498 $3,315 ----------------------------- ------------------- --------------------- Accounts Receivable, net 5 525 ----------------------------- ------------------- --------------------- Due from GTS Prepaid, Inc. 278 -- ----------------------------- ------------------- --------------------- Inventories, net -- 95 ----------------------------- ------------------- --------------------- Total Assets 2,974 4,144 ----------------------------- ------------------- --------------------- Working Capital 2,676 3,252 ----------------------------- ------------------- --------------------- Stockholders' Equity 2,742 3,403 ----------------------------- ------------------- --------------------- CELLULAR TECHNICAL SERVICES COMPANY, INC. ----------------------------------------- CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS ----------------------------------------------- (in 000's, except per share amounts) (unaudited)
THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, JUNE 30, -------- -------- 2003 2002 2003 2002 ---- ---- ---- ---- REVENUES Phonecards $ 13 $ 3,331 $ 171 $ 5,689 COSTS AND EXPENSES Cost of phonecards 14 3,346 217 5,617 Sales and marketing -- 246 28 537 General and administrative 330 343 661 650 Research and development -- 411 -- 815 --------------- --------------- --------------- ---------------- Total Costs and Expenses 344 4,346 906 7,619 --------------- --------------- --------------- ---------------- LOSS FROM OPERATIONS (331) (1,015) (735) (1,930) OTHER INCOME, net 3 2 19 5 INTEREST INCOME, net 23 22 36 51 --------------- --------------- --------------- ---------------- LOSS BEFORE INCOME TAXES $ (305) (991) (680) $ (1,874) PROVISION FOR INCOME TAXES -- 7 -- 7 --------------- --------------- --------------- ---------------- LOSS BEFORE THE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE (305) (998) (680) (1,881) --------------- --------------- --------------- ---------------- CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE -- -- -- (100) --------------- --------------- --------------- ---------------- NET LOSS $ (305) (998) (680) $ (1,981) =============== =============== =============== ================ BASIC AND DILUTED SHARE DATA: Basic: Loss before the effect of a change in accounting principle $ (0.13) $ (0.44) $ (0.30) $ (0.82) Cumulative effect of a change in accounting principle -- -- -- (0.04) --------------- --------------- --------------- ---------------- Loss per share $ (0.13) $ (0.44) $ (0.30) $ (0.86) =============== =============== =============== ================ Diluted: Loss before the effect of a change in accounting principle $ (0.13) $ (0.44) $ (0.30) $ (0.82) Cumulative effect of a change in accounting principle -- -- -- (0.04) --------------- --------------- --------------- ---------------- Loss per share $ (0.13) $ (0.44) $ (0.30) $ (0.86) =============== =============== =============== ================ WEIGHTED AVERAGE SHARES OUTSTANDING: Basic 2,292 2,292 2,292 2,292 Diluted 2,298 2,292 2,296 2,292
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