-----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, AjUxXKVgRGNYagB4Dkxj1hfqXQaxjA4ykyPVZThv2r09vOM9PtBVlcJP8mM327FA rHz/7k+zV+HSAUd6pxAmqQ== 0000910680-03-001042.txt : 20031202 0000910680-03-001042.hdr.sgml : 20031202 20031202143040 ACCESSION NUMBER: 0000910680-03-001042 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20031114 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20031202 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: 031032265 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 f8k111403.txt CURRENT REPORT 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): November 14, 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 November 14, 2003 ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION. Cellular Technical Services Company, Inc., announced its third quarter financial results for 2003 on November 14, 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: December 1, 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 November 14, 2003 EX-99 3 ex99_111403.txt PRESS RELEASE EXHIBIT 99.1 CELLULAR TECHNICAL SERVICES REPORTS 2003 THIRD-QUARTER RESULTS Seattle, November 14, 2003 - Cellular Technical Services Company, Inc. (OTC Symbol: CTSC.OB) ("CTS"), today reported its third quarter financial results for 2003.
- ------------------------------- ------------------- --------------------- -------------------- ------------------ (IN 000'S EXCEPT PER SHARE THREE MONTHS THREE MONTHS ENDED NINE MONTHS ENDED NINE MONTHS AMOUNTS) ENDED SEPTEMBER SEPTEMBER 30,2002 SEPTEMBER 30, 2003 ENDED SEPTEMBER 30,2003 30, 2002 - ------------------------------- ------------------- --------------------- -------------------- ------------------ Revenue $25 $3,728 $196 $9,417 - ------------------------------- ------------------- --------------------- -------------------- ------------------ Net Loss ($226) ($ 783) ($ 906) ($2,764) - ------------------------------- ------------------- --------------------- -------------------- ------------------ Basic and Diluted Net Loss ($0.10) ($0.34) ($0.40) ($1.21) Per Share - ------------------------------- ------------------- --------------------- -------------------- ------------------
Revenue decreased to $196,000 in the nine months of 2003 from $9.4 million in the nine months of 2002. CTS reported a quarterly net loss of $226,000 compared to $783,000 in the third quarter of 2002. The $0.6 million reduction in the net loss for the third 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 September 30, 2003 we had $2.5 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 three months of 2003, we forecast incurring less than $200,000 in expenses including compensation, costs of maintaining the business as a public entity and insurance, and also anticipate approximately $100,000 in cash receipts on our outstanding note from GTS Prepaid. We anticipate ending the year with a cash balance of approximately $2.4 million." 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) -------------------------------- -------------------------- --------------------------- September 30, 2003 December 31, 2002 -------------------------------- -------------------------- --------------------------- Cash $2,534 $3,315 -------------------------------- -------------------------- --------------------------- Accounts Receivable, net 19 525 -------------------------------- -------------------------- --------------------------- Due from GTS Prepaid, Inc. 181 -- -------------------------------- -------------------------- --------------------------- Inventories, net -- 95 -------------------------------- -------------------------- --------------------------- Total Assets 2,783 4,144 -------------------------------- -------------------------- --------------------------- Working Capital 2,536 3,252 -------------------------------- -------------------------- --------------------------- Stockholders' Equity 2,543 3,403 -------------------------------- -------------------------- ---------------------------
CELLULAR TECHNICAL SERVICES COMPANY, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in 000's, except per share amounts) (unaudited)
THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30, SEPTEMBER 30, -------------------- -------------------- 2003 2002 2003 2002 -------- -------- -------- -------- REVENUES Phonecards $ 25 $ 3,728 $ 196 $ 9,417 COSTS AND EXPENSES Cost of phonecards -- 3,645 217 9,262 Sales and marketing 1 251 29 788 General and administrative 289 221 950 871 Research and development -- 402 -- 1,217 -------- -------- -------- -------- Total Costs and Expenses 290 4,519 1,196 12,138 -------- -------- -------- -------- LOSS FROM OPERATIONS (265) (791) (1,000) (2,721) OTHER INCOME, net 24 -- 43 5 INTEREST INCOME, net 14 13 50 64 -------- -------- -------- -------- LOSS BEFORE INCOME TAXES $ (227) (778) (907) $ (2,652) INCOME TAX (BENEFIT) PROVISION (1) 5 (1) 12 -------- -------- -------- -------- LOSS BEFORE THE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE (226) (783) (906) (2,664) -------- -------- -------- -------- CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE -- -- -- (100) -------- -------- -------- -------- NET LOSS $ (226) (783) (906) $ (2,764) ======== ======== ======== ======== BASIC AND DILUTED SHARE DATA: Loss before the effect of a change in accounting principle $ (0.10) $ (0.34) $ (0.40) $ (1.17) Cumulative effect of a change in accounting principle -- -- -- (0.04) -------- -------- -------- -------- Loss per share $ (0.10) $ (0.34) $ (0.40) $ (1.21) ======== ======== ======== ======== WEIGHTED AVERAGE SHARES OUTSTANDING: Basic and Diluted 2,292 2,292 2,292 2,292
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