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
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
