TIDMUTK
RNS Number : 8360R
UTEK Corporation
07 May 2009
UTEK Corporation Reports Financial Results for Quarter Ended March 31, 2009
Tampa, FL -- (BUSINESS WIRE) - May 7, 2009 -- UTEK Corporation (NYSE Amex &
LSE-AIM: UTK) today announced financial results for the three months ended March
31, 2009.
Results of Operations
For the quarter ended March 31, 2009, income from operations (revenue) was $2.8
million as compared to $3.7 million for the quarter ended March 31, 2008. Net
income (loss) from operations for the quarter ended March 31, 2009 was ($2.1)
million as compared to ($1.7) million for the quarter ended March 31, 2008.
Approximately 0% and 72% of our income from operations (revenue) was received in
the form of unregistered shares of stock for the quarters ended March 31, 2009
and 2008, respectively.
The net decrease in net assets from operations (including net income (loss) from
operations and realized and unrealized gains and losses on investments) was
($5.0) million or ($0.45) per weighted average diluted share outstanding for the
quarter ended March 31, 2009, as compared to ($6.3) million or ($0.69) per
weighted average diluted share outstanding for the quarter ended March 31, 2008.
The value of the Company's investment portfolio was $10.9 million at March 31,
2009, as compared to $12.4 million at December 31, 2008. Net asset value per
common share outstanding was $3.07 at March 31, 2009 as compared with $3.42 at
December 31, 2008.
Liquidity and Financial Condition
The Company ended the first quarter of 2009 with cash, cash equivalents and
certificates of deposit of $4.3 million, total assets of $43.1 million and net
assets of $34.0 million and debt outstanding of $1.5 million at March 31, 2009.
Weighted average diluted shares outstanding were 10,987,743 and 9,161,046 for
the quarters ended March 31, 2009 and 2008, respectively.
First Quarter 2009 Summary
Throughout the past year, UTEK has made a strong push to position the Company as
a leading provider of innovation services for the Global 2000 marketplace. By
engaging UTEK, companies can now more rapidly develop new products, enter new
markets and avoid commoditization of their existing product lines. We completed
four acquisitions in 2008, and are now selling a unified innovation offering to
prospective clients.
Some of the highlights from our first quarter 2009 include:
* 100% of first quarter revenue was in the form of cash as opposed to securities
of our clients
* Cash income from operations rose to $2.8 million in Q1 2009 from $953,000 in Q1
2008
* More than half of our current technology search clients are from Global 2000
* Managerial expertise enhanced through recent acquisitions
* Q1 2009 cash equity monetization of $400,000
Restatement
On April 22, 2009, the Audit Committee and Board of Directors of UTEK
Corporation concluded that the Company's previously issued financial statements
for the fiscal year 2008 contained in the Company's Annual Report on Form 10-K
for the year ended December 31, 2008 and the financial statements for the
periods ended March 31, 2008, June 30, 2008 and September 30, 2008 contained in
its Quarterly Reports on Form 10-Q should be restated to accrue and report a
severance payment obligation as a liability and an expense in its 2008 financial
statements. The Company plans to file the restated financial statements and
certain financial information as contained in the Company's Form 10-K/A and
Forms 10-Q/A for the aforementioned periods on or before May 8, 2009.
Financial Position Information
The following tables contain comparative selected financial data as of March 31,
2009 and December 31, 2008 and for the three month periods ended March 31, 2009
and 2008:
UTEK Corporation
Consolidated Statements of Assets and Liabilities
+--------------------------------------------------------+--------------+--+--------------+
| | March 31, | | December |
| | 2009 | | 31, |
| | (Unaudited) | | 2008 |
| | | | (Restated) |
+--------------------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------------------+--------------+--+--------------+
| ASSETS | | | |
+--------------------------------------------------------+--------------+--+--------------+
| Investments: | | | |
+--------------------------------------------------------+--------------+--+--------------+
| Non-affiliate investments | $3,645,948 | | $5,603,440 |
| (cost: 2009 - $16,379,928; | | | |
| 2008 - $36,994,463) | | | |
+--------------------------------------------------------+--------------+--+--------------+
| Affiliate investments | 1,963,251 | | 3,477,200 |
| (cost: 2009 - $12,468,076; | | | |
| 2008 - $38,559,629) | | | |
+--------------------------------------------------------+--------------+--+--------------+
| Controlled | 4,636,000 | | 2,987,500 |
| investments (cost: 2009 | | | |
| - $5,831,574; 2008 - | | | |
| $10,637,748) | | | |
+--------------------------------------------------------+--------------+--+--------------+
| U.S. Treasuries and | 686,546 | | 291,581 |
| certificates of deposit | | | |
| (cost: 2009 - $686,546; | | | |
| 2008 - $291,581) | | | |
+--------------------------------------------------------+--------------+--+--------------+
| Total investments | 10,931,745 | | 12,359,721 |
+--------------------------------------------------------+--------------+--+--------------+
| Cash and cash equivalents | 3,611,743 | | 3,922,297 |
+--------------------------------------------------------+--------------+--+--------------+
| Accounts receivable, net of allowance for bad debt | 1,416,133 | | 2,290,363 |
+--------------------------------------------------------+--------------+--+--------------+
| Prepaid expenses and other assets | 678,892 | | 750,502 |
+--------------------------------------------------------+--------------+--+--------------+
| Fixed assets, net | 590,089 | | 653,208 |
+--------------------------------------------------------+--------------+--+--------------+
| Goodwill | 15,629,050 | | 15,246,143 |
+--------------------------------------------------------+--------------+--+--------------+
| Intangible assets, net | 10,249,129 | | 10,663,975 |
+--------------------------------------------------------+--------------+--+--------------+
| TOTAL ASSETS | 43,106,781 | | 45,886,209 |
+--------------------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------------------+--------------+--+--------------+
| LIABILITIES | | | |
+--------------------------------------------------------+--------------+--+--------------+
| Accounts payable | 454,705 | | 575,988 |
+--------------------------------------------------------+--------------+--+--------------+
| Accrued expenses | 1,002,833 | | 995,652 |
+--------------------------------------------------------+--------------+--+--------------+
| Accrued severance payable | 1,794,885 | | 1,651,814 |
+--------------------------------------------------------+--------------+--+--------------+
| Notes payable and other debt | 1,501,491 | | 839,765 |
+--------------------------------------------------------+--------------+--+--------------+
| Deferred revenue | 2,618,950 | | 2,849,270 |
+--------------------------------------------------------+--------------+--+--------------+
| Deferred tax liability | 1,757,003 | | 1,773,441 |
+--------------------------------------------------------+--------------+--+--------------+
| TOTAL LIABILITIES | 9,129,867 | | 8,685,930 |
+--------------------------------------------------------+--------------+--+--------------+
| NET ASSETS | $33,976,914 | | $37,200,279 |
+--------------------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------------------+--------------+--+--------------+
| Commitments and Contingencies | | | |
+--------------------------------------------------------+--------------+--+--------------+
| Composition of net assets: | - | | - |
| Preferred stock, $.01 par value, | | | |
| 1,000,000 shares authorized; none | | | |
| issued and outstanding | | | |
+--------------------------------------------------------+--------------+--+--------------+
| Common stock, $.01 par value, | 110,717 | | $108,800 |
| 29,000,000 shares authorized; | | | |
| 12,287,077 and 12,134,959 shares | | | |
| issued; 11,071,632 and 10,879,900 | | | |
| shares outstanding at March 31, 2009 | | | |
| and December 31, 2008, respectively | | | |
+--------------------------------------------------------+--------------+--+--------------+
| Additional paid-in capital | 76,967,312 | | 75,067,857 |
+--------------------------------------------------------+--------------+--+--------------+
| Accumulated income | | | |
+--------------------------------------------------------+--------------+--+--------------+
| Accumulated net operating income | 21,388,475 | | 23,463,295 |
+--------------------------------------------------------+--------------+--+--------------+
| Net realized loss on investments, net of income | (44,762,871) | | (7,744,736) |
| taxes | | | |
+--------------------------------------------------------+--------------+--+--------------+
| Net unrealized depreciation of investments, net of | (17,825,930) | | (51,921,150) |
| deferred income taxes | | | |
| | | | |
+--------------------------------------------------------+--------------+--+--------------+
| Foreign currency translation adjustment | (1,900,789) | | (1,773,787) |
+--------------------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------------------+--------------+--+--------------+
| Net assets | $33,976,914 | | $37,200,279 |
| | | | |
+--------------------------------------------------------+--------------+--+--------------+
| | | | |
+--------------------------------------------------------+--------------+--+--------------+
| Net asset value per share | $3.07 | | $3.42 |
+--------------------------------------------------------+--------------+--+--------------+
UTEK Corporation
Consolidated Statements of Operations
(Unaudited)
Three Months Ended March 31
+--------------------------------------------------------+--------------+---+--------------+
| | 2009 | | 2008 |
| | | | (Restated) |
+--------------------------------------------------------+--------------+---+--------------+
| Income from operations: | | | |
+--------------------------------------------------------+--------------+---+--------------+
| Innovation consulting services | $1,919,298 | | $ - |
+--------------------------------------------------------+--------------+---+--------------+
| Sale of technology rights | - | | 2,712,380 |
+--------------------------------------------------------+--------------+---+--------------+
| Subscription and other services | 813,759 | | 868,739 |
+--------------------------------------------------------+--------------+---+--------------+
| Investment income, net | 30,664 | | 84,447 |
+--------------------------------------------------------+--------------+---+--------------+
| | | | |
+--------------------------------------------------------+--------------+---+--------------+
| | 2,763,721 | | 3,665,566 |
+--------------------------------------------------------+--------------+---+--------------+
| | | | |
+--------------------------------------------------------+--------------+---+--------------+
| Expenses: | | | |
+--------------------------------------------------------+--------------+---+--------------+
| Direct costs of innovation consulting | 1,987,450 | | - |
| services | | | |
+--------------------------------------------------------+--------------+---+--------------+
| Acquisition of technology rights | - | | 1,184,000 |
+--------------------------------------------------------+--------------+---+--------------+
| Salaries and wages | 984,089 | | 2,857,708 |
+--------------------------------------------------------+--------------+---+--------------+
| Professional fees | 222,920 | | 308,195 |
+--------------------------------------------------------+--------------+---+--------------+
| Sales and marketing | 458,408 | | 648,032 |
+--------------------------------------------------------+--------------+---+--------------+
| General and administrative | 795,441 | | 739,655 |
+--------------------------------------------------------+--------------+---+--------------+
| Amortization and depreciation | 406,678 | | 85,539 |
+--------------------------------------------------------+--------------+---+--------------+
| | | | |
+--------------------------------------------------------+--------------+---+--------------+
| | 4,854,986 | | 5,823,129 |
+--------------------------------------------------------+--------------+---+--------------+
| | | | |
+--------------------------------------------------------+--------------+---+--------------+
| Loss before income taxes | (2,091,265) | | (2,157,563) |
+--------------------------------------------------------+--------------+---+--------------+
| Provision for income tax (benefit) expense | (16,445) | | (503,650) |
+--------------------------------------------------------+--------------+---+--------------+
| Net loss from operations | (2,074,820) | | (1,653,913) |
+--------------------------------------------------------+--------------+---+--------------+
| | | | |
+--------------------------------------------------------+--------------+---+--------------+
| Net realized and unrealized gains (losses): | | | |
+--------------------------------------------------------+--------------+---+--------------+
| Net realized loss on | (37,018,135) | | (126,102) |
| investments, net of income tax | | | |
| benefit | | | |
+--------------------------------------------------------+--------------+---+--------------+
| Net change in unrealized appreciation | 34,095,220 | | (4,550,776) |
| (depreciation) of investments, net of | | | |
| deferred tax benefit | | | |
+--------------------------------------------------------+--------------+---+--------------+
| Net decrease in net assets from operations | $(4,997,735) | | $(6,330,791) |
+--------------------------------------------------------+--------------+---+--------------+
| | | | |
+--------------------------------------------------------+--------------+---+--------------+
| Net decrease in net assets from operations per share: | | | |
+--------------------------------------------------------+--------------+---+--------------+
| Basic | $(0.45) | | $(0.69) |
+--------------------------------------------------------+--------------+---+--------------+
| Diluted | $(0.45) | | $(0.69) |
+--------------------------------------------------------+--------------+---+--------------+
| Weighted average shares: | | | |
+--------------------------------------------------------+--------------+---+--------------+
| Basic | 10,987,743 | | 9,161,046 |
+--------------------------------------------------------+--------------+---+--------------+
| Diluted | 10,987,743 | | 9,161,046 |
+--------------------------------------------------------+--------------+---+--------------+
| | | | |
+--------------------------------------------------------+--------------+---+--------------+
| Dividend declared per share: | - | | - |
+--------------------------------------------------------+--------------+---+--------------+
UTEK Corporation
Consolidated Statements of Cash Flows
(Unaudited)
+------------------------------------------------------------+--------------+---+--------------+
| | Three months ended March 31 |
+------------------------------------------------------------+---------------------------------+
| | 2009 | | 2008 |
| | | | (Restated) |
+------------------------------------------------------------+--------------+---+--------------+
| Operating Activities: | | | |
+------------------------------------------------------------+--------------+---+--------------+
| Net decrease in net assets from operations | $(4,997,735) | | $(6,330,791) |
+------------------------------------------------------------+--------------+---+--------------+
| Adjustments to reconcile | | | |
| net decrease in net assets | | | |
| from operations to net cash | | | |
| flows from operating | | | |
| activities: | | | |
+------------------------------------------------------------+--------------+---+--------------+
| Change in net unrealized (appreciation) depreciation | (34,095,226) | | 7,296,418 |
| of investments | | | |
+------------------------------------------------------------+--------------+---+--------------+
| Loss on sale of investments | 37,018,135 | | 202,184 |
+------------------------------------------------------------+--------------+---+--------------+
| Net proceeds from sale (purchases) of short-term | (394,966) | | (586) |
| investments | | | |
+------------------------------------------------------------+--------------+---+--------------+
| Proceeds received on sale of equity investments | 400,033 | | 1,472,639 |
+------------------------------------------------------------+--------------+---+--------------+
| Net repayment from (investment in) UTEK | - | | 45,322 |
| Real Estate Holdings, Inc. | | | |
+------------------------------------------------------------+--------------+---+--------------+
| Depreciation and amortization | 406,678 | | 85,539 |
+------------------------------------------------------------+--------------+---+--------------+
| Loss on disposal of fixed assets | 15,044 | | 3,603 |
+------------------------------------------------------------+--------------+---+--------------+
| Bad debt expense | 34,360 | | - |
+------------------------------------------------------------+--------------+---+--------------+
| Stock-based compensation | 244,849 | | 172,328 |
+------------------------------------------------------------+--------------+---+--------------+
| Deferred income taxes | (16,445) | | (3,325,374) |
+------------------------------------------------------------+--------------+---+--------------+
| Investment | - | | (2,587,380) |
| securities | | | |
| received | | | |
| in | | | |
| connection | | | |
| with the | | | |
| sale of | | | |
| | | | |
| technology | | | |
| rights | | | |
+------------------------------------------------------------+--------------+---+--------------+
| Consulting | - | | (35,400) |
| and other | | | |
| services | | | |
| rendered | | | |
| in | | | |
| exchange | | | |
| for | | | |
| investment | | | |
| securities | | | |
+------------------------------------------------------------+--------------+---+--------------+
| Changes in operating assets and liabilities: | | | |
+------------------------------------------------------------+--------------+---+--------------+
| Accounts receivable | 924,870 | | 110,837 |
+------------------------------------------------------------+--------------+---+--------------+
| Prepaid expenses and other assets | 71,610 | | (42,534) |
+------------------------------------------------------------+--------------+---+--------------+
| Deferred revenue | (308,232) | | (229,515) |
+------------------------------------------------------------+--------------+---+--------------+
| Accounts payable and accrued expenses | (263,129) | | 1,780,406 |
+------------------------------------------------------------+--------------+---+--------------+
| Net cash flows from operating activities | (960,154) | | (1,382,304) |
+------------------------------------------------------------+--------------+---+--------------+
| | | | |
+------------------------------------------------------------+--------------+---+--------------+
| Investing Activities: | | | |
+------------------------------------------------------------+--------------+---+--------------+
| Purchases of fixed assets | (2,539) | | (13,496) |
+------------------------------------------------------------+--------------+---+--------------+
| Net cash flows from investing activities | (2,539) | | (13,496) |
+------------------------------------------------------------+--------------+---+--------------+
| | | | |
+------------------------------------------------------------+--------------+---+--------------+
| Financing Activities: | | | |
+------------------------------------------------------------+--------------+---+--------------+
| Proceeds from borrowings on bank line of credit | 750,000 | | - |
+------------------------------------------------------------+--------------+---+--------------+
| Payments on notes payable and other debt | (88,274) | | - |
+------------------------------------------------------------+--------------+---+--------------+
| Proceeds from exercise of stock options | | | 112,800 |
| | - | | |
+------------------------------------------------------------+--------------+---+--------------+
| Net cash flows from financing activities | 661,726 | | 112,800 |
+------------------------------------------------------------+--------------+---+--------------+
| | | | |
+------------------------------------------------------------+--------------+---+--------------+
| Foreign currency translation adjustment | (9,587) | | 29,701 |
+------------------------------------------------------------+--------------+---+--------------+
| | | | |
+------------------------------------------------------------+--------------+---+--------------+
| Decrease in cash and cash equivalents | (310,554) | | (1,253,299) |
+------------------------------------------------------------+--------------+---+--------------+
| Cash and cash equivalents at beginning of period | 3,922,297 | | 5,254,576 |
+------------------------------------------------------------+--------------+---+--------------+
| Cash and cash equivalents at end of period | $3,611,743 | | $4,001,277 |
+------------------------------------------------------------+--------------+---+--------------+
| | | | |
+------------------------------------------------------------+--------------+---+--------------+
Conference Call at 10:00 a.m. EDT on Thursday, May 7, 2009
UTEK will hold a live conference call on Thursday, May 7, 2009 at 10:00 a.m. EDT
to discuss its first quarter 2009 results. All interested parties are invited to
attend the conference call.
Conference call dial-in numbers:
US & Canada: 866-672-2663
UK: 0-800-032-3836
Other International Callers: 973-582-2772
Please reference conference ID# 98665745
About UTEK Corporation
UTEK is a leading innovation services company. UTEK's services enable clients
to become stronger innovators, rapidly source externally developed technologies,
create value from their intellectual property and gain foresight into
marketplace and technology developments that affect their business. UTEK is a
business development company. For more information about UTEK, please visit its
website at www.utekcorp.com.
Forward-Looking Statements
Certain matters discussed in this press release are "forward-looking
statements." These forward-looking statements can generally be identified as
such because the context of the statement will include words, such as UTEK
"expects," "should," "believes," "anticipates" or words of similar import. Such
forward-looking statements are subject to certain risks and uncertainties, which
could cause actual results to differ materially from those currently
anticipated. Certain factors could cause results and conditions to differ
materially from those projected in these forward-looking statements, and some of
these factors are discussed below. These factors are not exhaustive. New
factors, risks and uncertainties may emerge from time to time that may affect
the forward-looking statements made herein. These forward-looking statements are
only made as of the date of this press release and UTEK does not undertake any
obligation to publicly update such forward-looking statements to reflect
subsequent events or circumstances.
This press release as well as the Form 10-Q (when filed) will be available on
the Company's website www.utekcorp.com.
Important factors that could cause actual results to differ materially from
those indicated in forward-looking statements, include: the audit and review by
UTEK's registered independent public accounting firm of the results and findings
of UTEK, including the audit and review of UTEK's estimates of amounts to be
restated; the impact, if any, of such results or findings on the financial
statements of UTEK; UTEK's inability to timely file reports with the SEC; risks
of litigation arising out of or related to any of the matters described in this
press release; and risks, uncertainties and changes in financial condition.
Please refer to UTEK's filings with the SEC for other important risks that could
cause actual results to differ materially from those indicated in any
forward-looking statements.
+---------------------------------------+
| Contacts: |
+---------------------------------------+
| UTEK Corporation |
+---------------------------------------+
| USA: |
+---------------------------------------+
| Tania Bernier |
+---------------------------------------+
| 813-754-4330 x223 |
+---------------------------------------+
| UK: |
+---------------------------------------+
| Fairfax I.S. Plc - AIM Nominated |
| Adviser & Broker |
+---------------------------------------+
| Jeremy Porter |
+---------------------------------------+
| + 44 (0)20 7598 5368 |
+---------------------------------------+
This information is provided by RNS
The company news service from the London Stock Exchange
END
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