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Patriot Scientific Corporation Releases Third Fiscal Quarter Report; Company Addresses Significant Events
Apr 09, 2010 (04:04 PM EDT)
CARLSBAD, Calif., April 9 /PRNewswire-FirstCall/ -- Patriot Scientific Corporation (OTC Bulletin Board: PTSC) today reported the filing of its report on Form 10-Q for its third fiscal 2010 quarter ended February 28, 2010.
For the three and nine month periods ended February 28, 2010, the Company's revenues were $0.2 and $0.3 million, respectively, compared to $1.4 million and $4.6 million, respectively, for the same periods in the prior fiscal year. The decrease in revenues is primarily attributable to the May 2009 deconsolidation of Holocom, Inc., and its exclusion from the consolidated operating results. Results from Patriot's investment in the MMP™ portfolio of microprocessor patents, a joint venture with Phoenix Digital Solutions, LLC (PDS) and The Technology Properties Limited Group (TPL), were $0.4 and $3.9 million in earnings, respectively, for the three and nine-month periods ended February 28, 2010, and a $0.9 loss and $5.7 million in earnings, respectively, for the same periods in the prior fiscal year.
For the three and nine month periods ended February 28, 2010, the Company's net loss totaled $0.9 and $5.7 million, respectively, compared to a $1.5 million net loss and net income of $0.8 million, respectively, for the same periods in the prior fiscal year. At February 28, 2010 the Company's cash, cash equivalents and marketable securities totaled $16.0 million.
The May 2009 change in the manner in which the Company's investment in Holocom is accounted for had no impact on the Company's net operating results for all fiscal periods presented.
"This has been a period where we've enjoyed some accomplishments as well as encountered some new challenges," stated Cliff Flowers, Patriot's interim CEO.
In February, PDSG successfully launched several new product offerings, including the Crossflo DataExchange® (CDX) Connect for N-DEx. This product is believed to be the first and only commercial-off-the-shelf (COTS) solution available to enable data sharing between the FBI's N-DEx database and other agencies, allowing the sharing of information across jurisdictional boundaries and providing new investigative tools that enhance the nation's ability to fight crime and terrorism. Built on the CDX platform, CDX Connect for N-DEx has been successfully deployed, linking the New Jersey State Police Data Exchange (NJ-DEx) with the FBI's N-DEx.
Also launched in February, the CDX 4 Enterprise suite makes significant strides towards automating data sharing, accelerating standards-based initiatives, reducing related costs and preserving legacy investments. Included for the first time with the CDX 4 Enterprise suite are the CDX ExchangeBuilder, which facilitates the design of data exchanges with unprecedented efficiency, and the CDX Portal, which provides agencies with a single point of access to all data sources aggregated by CDX. With over 18,000 separate federal, state, and local law enforcement communities in the U.S., PDSG is positioned to be a significant provider of the critical infrastructure needed to increase interagency communication and coordination.
The Company is continuing to undergo a review of the PDSG subsidiary and hired Attain, LLC (formerly Eclat Consulting, LLC) to provide comprehensive business services. Most recently, these services have focused on expanding the reach of PDSG through identification and development of strategic partnerships capable of providing access to new customer opportunities. This initiative has opened a broader market for PDSG within Federal, State and Local Government.
PTSC's 10-Q also reports that during the February quarter the Company reaffirmed its commitment to the MMP™ portfolio of microprocessor patents by providing two loans totaling $1,950,000 to TPL. One of the loans issued currently is in default causing the Company to take a charge to earnings of $1,000,000 plus interest in the event of its non-collection, while at the same time the Company has asserted certain offsets to amounts claimed to be due TPL but are otherwise in dispute. The Company is working aggressively to resolve this issue and to provide for the resumption of productive license activity from the MMP™ portfolio.
The Company expects to file its next annual report on Form 10-K on Monday, August 16th, 2010.
About Patriot Scientific Corporation
Headquartered in Carlsbad, California, Patriot Scientific Corporation (PTSC) provides data sharing and secure data solutions for a connected world. These activities are funded with revenues generated, in a large part, from the Moore Microprocessor Patent™ Portfolio licensing partnership with The TPL Group. For more information on Patriot Scientific Corporation, visit: www.ptsc.com.
About Patriot Data Solutions Group, Inc.
Patriot Data Solutions Group, Inc. ("PDSG") provides products and solutions that enable data-sharing initiatives. The company's flagship product, the Crossflo DataExchange® solution, helps link systems together and facilitates secure data sharing. The solution has been designed to work directly with a number of national data sharing standards, including NIEM (National Information Exchange Model), and the Global Justice XML Data Model (GJXDM). PDSG's technological innovation is backed by subject matter expertise and proven methodologies, facilitating the rapid exchange of actionable data.
PDSG is the data-sharing group of Patriot Scientific Corporation, which is headquartered in Carlsbad, California (OTCBB: PTSC). For more information on Patriot Data Solutions Group, visit www.pdsg.com.
About the MMP™ Portfolio
The Moore Microprocessor Patent Portfolio contains intellectual property that is jointly owned by the privately-held TPL Group and publicly-held Patriot Scientific Corporation (OTCBB: PTSC – News). The MMP Portfolio includes seven U.S. patents as well as their European and Japanese counterparts. It is widely recognized that the MMP Portfolio protects fundamental technology used in microprocessors, microcontrollers, digital signal processors (DSPs), embedded processors and system-on-chip (SoC) devices. Manufacturers of microprocessor-based products can learn more about how to participate in the MMP Portfolio Licensing Program by contacting: firstname.lastname@example.org .
About Attain, LLC
Based in Vienna, Va., Attain is a professional services company comprised of innovative problem solvers who deliver tangible results to address today's complex public sector challenges. With approximately 200 employees, Attain delivers strategic, operational support, healthcare solutions, and IT security and application services to more than 125 customers in the Federal, state and local government, higher education and nonprofit markets.
For more information about Attain, please visit www.attain.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, patent litigation, technical development risks, seasonality and other risk factors detailed in the company's Securities and Exchange Commission filings.
SOURCE Patriot Scientific Corporation