-----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, MMP/Q7DnqFSFLVzNMyctybjy4FB4CIfUFKdCfZbyMCbi9znznTVLyQyFtdSvPTvP F19xL4Rd2BCrOBVViDFCPw== 0000910680-04-000795.txt : 20040802 0000910680-04-000795.hdr.sgml : 20040802 20040802154043 ACCESSION NUMBER: 0000910680-04-000795 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040802 ITEM INFORMATION: ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20040802 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: 04945004 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 f8k080204.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): August 2, 2004 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) 733-8180 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 2, 2004 Item 12. Results of Operations and Financial Condition Cellular Technical Services Company, Inc., announced its second quarter financial results for 2004 on August 2, 2004. 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 2, 2004 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 2, 2004 EX-99 2 ex99_1-f8k080204.txt PRESS RELEASE Exhibit 99.1 Cellular Technical Services Reports 2004 Second-Quarter Results Seattle, August 2, 2004 - Cellular Technical Services Company, Inc. (OTC Symbol: CTSC.OB) ("CTS"), today reported its second quarter financial results for 2004.
- ---------------------------- ---------------------- --------------------- -------------------- ------------------ (in 000's except per share Three Months Ended Three Months Ended Six Months Ended Six Months Ended amounts) June 30,2004 June 30,2003 June 30, 2004 June 30, 2003 - ---------------------------- ---------------------- --------------------- -------------------- ------------------ Revenue $-- $13 $-- $171 - ---------------------------- ---------------------- --------------------- -------------------- ------------------ Net Loss ($ 149) ($ 305) ($ 270) ($ 680) - ---------------------------- ---------------------- --------------------- -------------------- ------------------ Net Loss Per Share (basic ($0.06) ($0.13) ($0.11) ($0.30) and diluted) - ---------------------------- ---------------------- --------------------- -------------------- ------------------
CTS reported losses of $149,000 for the second quarter of 2004 and $270,000 for the first six months of 2004. Both periods reflect no revenue and significant reductions in operating expenses all resulting from the closure of our ISIS phonecard operations and layoffs of personnel. The 2003 periods included recognition of the remaining revenue from our Isis phonecard subsidiary. Steve Katz, CTS Chairman and CEO noted, "At June 30, 2004 we had $2.3 million in cash and no debt. We are continuing to evaluate business alternatives including several investment opportunities. We have concluded the discovery period on our one outstanding litigation matter and expect some resolution during this year. We remain optimistic about the outcome; however, we are unable to assess the likelihood of a positive decision at this time. Our investment in KSI/TruePosition was written down to zero in late 2002. We have had recent discussions concerning this investment and believe that it may have some positive future value for CTS; however, at this time we are unable to determine how much or when. Today we have one full-time employee remaining. For the remaining six months of 2004, we forecast incurring a total of approximately $0.3 million in expenses including employee compensation, remaining amortization of non-cash compensation, costs of maintaining the business as a public entity and insurance." 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. Article I SELECTED CONSOLIDATED BALANCE SHEET DATA
(in 000's) -------------------------------- ---------------------- ------------------------ June 30, 2004 December 31, 2003 -------------------------------- ---------------------- ------------------------ Cash $2,327 $2,651 -------------------------------- ---------------------- ------------------------ Accounts Receivable, net 4 11 -------------------------------- ---------------------- ------------------------ Total Assets 2,405 2,681 -------------------------------- ---------------------- ------------------------ Working Capital 2,266 2,499 -------------------------------- ---------------------- ------------------------ Stockholders' Equity 2,271 2,505 -------------------------------- ---------------------- ------------------------
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, ------- ------------- --------------------- 2004 2003 2004 2003 ------- ------- ------- ------- REVENUES Phonecards $ -- $ 13 $ -- $ 171 COSTS AND EXPENSES Cost of phonecards -- 14 -- 217 Sales and marketing -- -- -- 28 General and administrative 158 330 290 661 ------- ------- ------- ------- Total Costs and Expenses 158 344 290 906 ------- ------- ------- ------- LOSS FROM OPERATIONS (158) (331) (290) (735) OTHER INCOME, net 3 3 6 19 INTEREST INCOME, net 6 23 14 36 ------- ------- ------- ------- LOSS BEFORE INCOME TAXES $ (149) $ (305) (270) (680) PROVISION FOR INCOME TAXES -- -- -- -- ------- ------- ------- ------- NET LOSS $ (149) $ (305) (270) (680) ======= ======= ======= ======= BASIC AND DILUTED SHARE DATA: ------- ------- ------- ------- Loss per share $ (0.06) $ (0.13) $ (0.11) $ (0.30) ======= ======= ======= ======= WEIGHTED AVERAGE SHARES OUTSTANDING: Basic and diluted 2,450 2,292 2,450 2,292
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