Exhibit 99(a)
NCT Group, Inc.
NEWS RELEASE
CONTACTS: Joanna Lipper
NCT Group, Inc.
(203) 226-4447 ext. 3506
(203) 226-3123 (fax)
jlipper@nctgroupinc.com
FOR IMMEDIATE RELEASE
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NCTI REPORTS YEAR END 2004 RESULTS
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WESTPORT, Conn. April 7, 2005 - NCT Group, Inc. (OTCBB: NCTI) reported that
total revenue for the three months ended December 31, 2004 was $1.4 million
compared to $1.4 million in the same period in 2003. Net loss for the three
months ended December 31, 2004 was $28.4 million compared to a net loss of $13.3
million for the same period a year ago. A significant portion of our net loss
was attributable to interest expense of $13.6 million for the three months ended
December 31, 2004 compared to interest expense of $5.0 million for the same
period a year ago.
The company reported that total revenue for the year ended December 31,
2004 was $5.5 million compared to $4.9 million in the same period in 2003. Net
loss for the year ended December 31, 2004 was $64.6 million compared to a net
loss for the same period a year ago of $30.3 million. Interest expense was $42.7
million for the year ended December 31, 2004 compared to interest expense of
$14.3 million for the same period a year ago.
The increase in interest expense was attributable to both an overall
increase in short-term debt and non-cash and other charges related to the debt.
"We continue to develop new Artera Turbo partnerships to advance our
objectives both in the US and internationally," said Michael J. Parrella,
Chairman and CEO, NCTI. "During the past year, our technology has undergone
extensive third-party testing and validation in support of distribution into the
enterprise market."
Mr. Parrella continued, "We are also developing a new web accelerator brand
and business model that we believe will enable us to compete more effectively in
the residential web accelerator market. We intend to commercially introduce this
new brand in the second quarter of 2005."
About NCT Group, Inc.
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NCTI REPORTS YEAR END 2004 RESULTS - p.2
NCT Group, Inc. is a publicly-traded, high-tech company with a strong technology
base. NCTI is rich in intellectual property with 592 patents and related rights.
The company's major focus is the development of its communications subsidiaries.
Artera Group, Inc. is a provider of breakthrough "last mile" optimization
technology for residential, small business and enterprise applications. We
believe Artera Turbo is the fastest and most comprehensive Web acceleration
service on the market for residential and small business users. For enterprise
applications in the U.S., Artera has partnered with a leading global provider of
communications networks and services for businesses. The enterprise service can
create more capacity on a company's communications network and more than double
data transmission speeds without the need for investing in hardware-based
bandwidth compression systems or network upgrades. Pro Tech Communications, Inc.
(OTCBB: PCTU) is a manufacturer of headsets and other communications products
for a variety of applications. Pro Tech is currently a leader in headsets for
the fast food market and has a strategic agreement with the McDonald's
Corporation. In addition to expanding its product lines to address the
rapidly-growing telephony, multimedia and cellular markets, Pro Tech is
developing products for other applications including consumer audio, industrial
safety, spectator racing, two-way radio communications and aviation. NCTI also
has strategic licensing relationships with manufacturers for integration of
certain NCTI technologies into products and applications. For more information
visit www.nctgroupinc.com.
# # #
NCT GROUP, INC.
(Unaudited)
For The Three Months For The Twelve Months
Ended December 31 Ended December 31,
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(In millions, except per share data) 2003 2004 2003 2004
Total revenue $ 1.4 $ 1.4 $ 4.9 $ 5.5
Operating costs and expenses $ 8.7(a) $ 10.3(b) $ 22.1(c) $ 20.9(d)
Other (income) expense, net $ 1.0 $ 5.9 $ (1.2)(e) $ 6.5(f)
Interest expense, net $ 5.0 $ 13.6 $ 14.3 $ 42.7
Net loss $ (13.3) $ (28.4) $ (30.3) $ (64.6)
Net loss per share $ (0.02)(g) $ (0.052)(h) $ (0.06)(i) $ (0.11)(j)
Weighted average number of 645.0 645.0 563.5 645.0
common shares outstanding
Footnotes:
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(a) Includes approximately $0.1 million for depreciation and amortization and
$0.9 million for the cost of issuing options and warrants for services.
(b) Includes approximately $0.1 million for depreciation and amortization.
NCTI REPORTS YEAR END 2004 RESULTS - p.3
(c) Includes approximately $0.7 million for depreciation and amortization and
$8.3 million for the cost of issuing options and warrants for services.
(d) Includes approximately $0.3 million for depreciation and amortization and
$0.2 million for the cost of issuing options and warrants for services and
$5.9 million impairment of goodwill.
(e) Includes litigation settlements of $5.3 million.
(f) Includes gain on dissolution of Artera Group International Limited of $4.6
million.
(g) The loss per share for the three months ended December 31, 2003 includes
preferred stock dividends of $0.3 million and non-registration charges of
$0.1 million.
(h) The loss per share for the three months ended December 31,, 2004 includes
preferred stock dividends of $0.4 million, non-conversion/exchange charges
of $1.2 million and non-registration charges of $1.2 million.
(i) The loss per share for the twelve months ended December 31, 2003 includes
preferred stock dividends of $1.1 million and non-registration charges of
$1.8 million.
(j) The loss per share for the twelve months ended December 31, 2004 includes
beneficial conversion features of $0.1 million, preferred stock dividends
of $1.1 million, non-conversion/exchange charges of $2.0 million and
non-registration charges of $3.9 million.
Cautionary Statement Regarding Forward-Looking Statements
Statements in this press release that are not historical are forward-looking.
These statements are subject to numerous risks and uncertainties that could
cause actual results to differ materially, including but limited to: NCTI's
ability to generate sufficient funds to execute its business plan; its ability
to obtain additional financing if and when necessary; its ability to repay or
refinance indebtedness as it becomes due; the results of litigation; general
economic and business conditions; the level of demand for NCTI's products and
services; the level and intensity of competition in the technology industry;
NCTI's ability to develop new products and the market's acceptance of those
products; and its ability to manage its operating costs effectively. These
forward-looking statements speak only as of the date of this press release. NCTI
undertakes no obligation to publicly update any forward-looking statements,
whether as a result of new information, future events or otherwise. These and
other factors affecting NCTI's business and prospects are discussed in greater
detail in NCTI's filings with the Securities and Exchange Commission, which are
available online in the EDGAR database at http://www.sec.gov.