hawk/pdf-file

Patriot Scientific Corporation
6183 Paseo Del Norte, Suite 180, Carlsbad CA 92011
Interim CEO: Rick Goerner, (760) 547-2700
www.ptsc.com and www.hawkassociates.com
Investor Contact: Frank N. Hawkins, Jr. or Ken AuYeung (305) 451-1888
,19(670(17
52),/(
Patriot Scientific Corporation
March 6, 2008
Gerber Scientific Purchases Moore Microprocessor
Patent™ Portfolio License. Patriot Scientific Names Chip
Industry Veteran as Chief Executive Officer.
Company Description
Patriot Scientific is an intellectual property com-
Hawk Associates Inc.
pany established to develop and market innovative and proprietary semiconductor technologies
into the fast-growing hand-held wireless and
smart card markets. Products based on these technologies can be used to connect to the Internet
or other telecommunication networks. The company owns a portfolio of patents that encompass fundamental microprocessor technologies
and includes additional patents pending. The
company’s strategy is to exploit its microprocessor
technologies through product sales, licensing and
strategic alliances. The company also intends to
litigate against those infringing on its patents.
Founded in 1987 with DOD applicable technolo-
gies, Patriot Scientific developed a 32-bit unique
microprocessor architecture in 1994 that evolved
into the IGNITE™ family of microprocessors,
the industry’s smallest and most powerful 32bit RISC microprocessor devices. The IGNITE
technology is based on a unique dual stack architecture that delivers a low-cost, general purpose,
Java environment in a single processor that is
half the size, consumes half the power and delivers twice the performance of other 32-bit RISC
microprocessors.
Fundamentally Different Technology
The company’s technology is fundamentally
different from other microprocessors because it
employs the combined features from both register
and stack designs creating an architecture that
I n v e s t o r
PTSC - OTCBB
Closing Price (03/06/08)
52-Week Range
Market Cap.
Shares Outstanding
Fully Diluted Shares
Average Daily Trading
$0.385
$0.34-$0.94
$150.6 mil.
391.2 mil.
392.6 mil.
1,167,220
FY ’07 Net Income
FY ’07 Diluted EPS
Total Assets (11/30/07)
Total Liabilities (11/30/07)
Insider Ownership
Fiscal Year End
$23.7 mil.
$0.06
$22.7 mil.
$7.4 mil.
2.74%
May 31
improves performance for a wide range of embedded applications.
Due to its innovative and simplistic design, PTSC’s technology enables manufacturers to replace less efficient control devices, add functionality and reduce
cost. These applications also enable manufacturers of cell phones, smart cards,
remote controls, appliances, portable computers and devices, motor controls,
automotive systems and many others to differentiate their products.
According to the Semiconductor Industry Association (SIA), global chip sales
were approximately 255.6 million in 2007, up 3.2% from $247.7 billion in
2006. Based on the outlook for key demand drivers, SIA is projecting a growth
rate of 7.7% for the industry through 2008.
The company has targeted its 32-bit RISC microprocessor for embedded
applications such as smart cards and the mobile hand-held device market. The
Yankee Group predicts the global wireless user base will reach 1.72 billion
subscribers in 2007. Dataquest states cell phone handset applications will be a
major growth area for embedded control systems.
R e l a t i o n s
C o m m u n ic a t i o n s
227 Atlantic Blvd · Key Largo, Fla. 33037 · Tel: (305) 451-1888 · Fax: (305) 451-3100 · E-mail: [email protected] · www.hawkassociates.com
Patriot Scientific Corporation
Recent Key Developments
03/06/08
Gerber Scientific purchases Moore Microprocessor Patent™ portfolio license.
02/29/08
Jim Turley resigns as president and CEO of Patriot
Scientific. Chip industry veteran Rick Goerner
named as interim CEO and President.
02/28/08
Citizen becomes newest microprocessor patent
licensee.
12/18/07
TPL, Patriot Scientific, NEC Electronics America,
Toshiba, Matsushita (Panasonic), and JVC resolve
their dispute over the MMP™ Portfolio.
10/11/07
Patriot Q1 ’08 net income ($1.96 mil.) or ($0.01)
vs. $6.0 mil. or $0.01 per diluted share a year earlier.
08/15/07
Patriot FY ’07 net income $23.7 mil. or $0.06 vs.
$28.7 mil. or $0.07 per diluted share in FY ’06.
04/24/07
Patriot Q3 ’07 net income $9.6 mil. or $0.02 vs.
$24.9 mil. or $0.06 per diluted share a year earlier.
MMP Licensees
• Intel Corp.
• Casio
• Sony
• LEGO
• PENTAX
• Olympus
• Sharp
• Lexmark
• Schneider Electric
• Bull
• DMP Electronics
• NEC
• Daewoo Electronics
• Alpine Electronics
• Humax
• Psion
• Mattel
• Citizen Holdings
Management Team
• Interim CEO and President, Rick Goerner
• CFO, Clifford Flowers
• Director, Helmut Falk, Jr.
• Director, Gloria Felcyn
• Director, Carlton M. Johnson, Jr.
• Director, Nick Tredennick
Website Information
Copies of PTSC press releases, SEC filings, current price
quotes, stock charts and other valuable information for
investors may be found on the following websites:
www.hawkassociates.com, www.americanmicrocaps.com
and www.ptsc.com.
OTCBB: PTSC
Patriot Scientific has emerged as an effective and dynamic
intellectual property licensing company, developing and
marketing innovative and proprietary semiconductor technologies. The company’s portfolio of proprietary designs
encompasses what is believed to be fundamental ultra-lowpower array microprocessor technology, as well as pending
patents designed to protect Patriot’s proprietary technology.
The patent portfolio, marketed as the Moore Microprocessor
Patent™ (MMP) Portfolio, contains intellectual property
jointly owned by Patriot and the privately held TPL Group.
The portfolio encompasses seven U.S. patents as well as their
European and Japanese counterparts. Protected through year
2015, the patents protect techniques used in designing
microprocessors, microcontrollers, Digital Signal Processor
(DSPs), embedded processors and System-on-Chip (SoC)
implementations.
The intellectual property represented by the MMP Portfolio
of patents encompasses building blocks for virtually all digital products being designed and shipped today. This includes
techniques used in devices ranging from TV remote controls
to sophisticated medical diagnostic equipment, portable
media players and complex Internet backbone hardware.
Today’s automobiles have dozens of such devices. Global
sales of end products deploying chips using technologies
protected by the jointly owned patents are estimated to be
greater than $200 billion annually.
The MMP portfolio-licensing program headed by TPL under
the Alliacense brand rewards first movers in their industry
sectors with substantial discounts. By design, the licensing
structure enables early adapter manufacturers to disadvantage their competitors. Alliacense said it has contacted
hundreds of system manufacturers around the globe.
In March, Gerber Scientific joined an expanding roster
including Citizen Holdings, Advanced Medical Optics Mattel,
DIRECTV, Tokyo Electron, Psion, Humax, Verigy, Alpine
Electronics, Lite-On, Daewoo Electronics, TEAC, Royal
Philips Electronics, Denso Wave, DMP Electronics, LEGO,
Bull, Nokia, Sharp, SanDisk, Funai Electric, NEC, Schneider
Electric, Lexmark, Agilent, Kenwood, Olympus, PENTAX,
Seiko Epson, Nikon, Sony, Fujitsu, Casio, Hewlett-Packard,
Intel and AMD as a MMP Portfolio licensee.
Over 220 of an estimated 485 companies placed on written
notice for likely infringement on one or more patents in the
portfolio have engaged in communications with the company’s licensing team. After allocation for expenses, Patriot
saw over $48 million in one-time licensing fees from the
portfolio in fiscal year 2007.
Risk Factors
•Ability to successfully commercialize MMP Portfolio
•Ability to successfully derive additional revenues from patents
•Ability to locate and invest in acquisition(s) that offer opportunity for growth and profitability
The information contained herein is believed to be accurate and is based upon sources which are considered reliable but are not guaranteed by Hawk
Associates or the company mentioned. This information is subject to change without notice. Hawk Associates is not a registered broker dealer. Neither Hawk
Associates nor the company mentioned assumes any responsibility for the information contained herein. The company featured in this report is a client of
Hawk Associates, Inc. This does not represent an offer to buy or sell any security. This profile is protected by applicable copyright laws. No permission is
granted to copy, distribute, modify, or post any text, graphics, design or logos.
Hawk Associates Inc.
• Advanced Micro Devices (AMD)
• Hewlett Packard • Fujitsu
• Nikon
• Seiko Epson
• SanDisk
• Kenwood
• Agilent
• Nokia
• Funai Electric
• Denso Wave
• Royal Philips Electronics • TEAC
• Lite- On
• Verigy • Tokyo Electron
• DIRECTV
• Advanced Medical Optics
• Gerber Scientific
The Outlook