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
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
