Patriot Scientific Reports Fiscal Q1 Net Income of $5.99M, or $0.014 Diluted EPS
Company Announces Share Buy Back Actions
CARLSBAD, Calif., Oct. 23 /PRNewswire-FirstCall/ -- Patriot Scientific
Corporation (OTC Bulletin Board: PTSC) today reported net income of
$5,990,000 after provision for taxes, or $0.014 per diluted share, for the
first fiscal quarter ended August 31, 2006. A copy of the company's Form
10-Q, filed with the U.S. Securities and Exchange Commission, is available
on the company's newly redesigned website, www.ptsc.com, where visitors can
now sign up for e-mail alerts.
The results included $12,070,198 recorded as the company's 50% share of
the net income of Phoenix Digital Solutions, Patriot's joint venture with
TPL that is responsible for marketing the jointly owned MMP portfolio
license agreements. The company said it had $16,126,000 in current assets
including short-term investments and over $9,600,000 in cash and cash
equivalents at the end of the quarter. Current liabilities of $4,040,000
included a $3,500,000 provision for income taxes. The company has no
long-term debt.
In another matter, the company said it began to buy back stock in July
with the repurchase of 2,075,003 shares at an aggregate cost of $1,839,000.
In September, the company purchased 1,199,824 shares at an aggregate cost
of $934,000. The company said it had 369,536,087 common shares outstanding
on October 2, 2006.
Patriot Scientific chairman and CEO David Pohl said, "These results
reflect solid progress in pursuing our MMP portfolio licensing strategy
through our partnership with TPL. We had a net increase in cash of
$5,695,000 during the quarter as we continued to strengthen our balance
sheet and our financial structure. We have subsequently used some of the
cash for share buy backs in July and September. Shareholders' equity at the
end of the quarter was $16,629,000, up from $10,827,000 on May 31, 2006."
Patriot previously disclosed that from June 1, 2006 through October 3,
2006, Phoenix Digital Solutions entered into MMP portfolio license
agreements with third parties, pursuant to which Phoenix Digital received
aggregate proceeds totaling $32,699,000. The dollar amount for each
licensing deal varies. Each amount is dependent on the relevance of the
patents to each licensee's revenue and the extent to which the patented
technology is incorporated into specific products.
"We are delighted that the strength of our patent portfolio continues
to be validated by the 11 licenses that have been signed thus far with
major electronics companies, nine of them since January," Pohl stated. "We
remain positive in our outlook for continued revenue based on further
progress in licensing more of over 300 companies around the globe that have
been notified they are candidates."
Pohl also noted that Patriot Scientific is actively evaluating sources
and opportunities to create additional recurring revenue through possible
joint ventures or acquisitions, all with the goal of increasing shareholder
value.
Patriot Scientific and The TPL Group are co-owners of the MMP
Portfolio, which Alliacense(TM), a TPL Group enterprise, exclusively
manages. The MMP Portfolio patents, filed in the 1980s, protect design
techniques that have become essential to a myriad of consumer and
commercial digital systems ranging from computers, DVD players, cell phones
and portable music players, to communications infrastructure, medical
equipment and automobiles.
About Patriot Scientific
Patriot Scientific is a leading intellectual property licensing company
that develops, markets and enables innovative technologies to address the
demands in fast-growing markets such as wireless devices, smart cards, home
appliances and gateways, set-top boxes, entertainment technology,
automotive telematics, biomedical devices and industrial controllers.
Headquartered in Carlsbad, Calif., information about the company can be
found at www.ptsc.com.
An investment profile on Patriot Scientific may be found at
www.hawkassociates.com/ptscprofile.aspx .
Copies of Patriot Scientific press releases, current price quotes,
stock charts and other valuable information for investors may be found at
www.hawkassociates.com and www.americanmicrocaps.com .
About the Patent Portfolio
The patent portfolio, marketed as the Moore Microprocessor Patent
Portfolio, contains intellectual property that is jointly owned by the
publicly held Patriot Scientific Corporation and the privately held TPL
Group. The portfolio encompasses seven U.S. patents as well as their
European and Japanese counterparts. Both TPL and Patriot assert that their
jointly owned patents protect techniques used in designing microprocessors,
microcontrollers, Digital Signal Processors (DSPs), embedded processors and
System-on-Chip (SoC) implementations. The MMP Portfolio is exclusively
managed by Alliacense, a TPL Group Enterprise.
Moore Microprocessor Patent, MMP and Alliacense are trademarks of
Technology Properties Limited (TPL). PTSC and Ignite are trademarks of
Patriot Scientific Corporation. All other trademarks belong to their
respective owners.
CONTACTS:
Patriot Media Relations
The Hoffman Agency
David Friedman
(303) 868-9641
dfriedman@hoffman.com
Patriot Investor Relations
Hawk Associates
Frank Hawkins or Ken AuYeung
(305) 451-1888
info@hawkassociates.com
Safe Harbor Statement under the Private Securities Litigation Reform
Act of 1995: Statements in this news release looking forward in time
involve risks and uncertainties, including the risks associated with the
effect of changing economic conditions, trends in the products markets,
variations in the company's cash flow, market acceptance risks, technical
development risks, seasonality and other risk factors detailed in the
company's Securities and Exchange Commission filings.
SOURCE Patriot Scientific Corporation