Sorry about the format it is the best I could do. I paid for this, which was a waste of money, but was curious just to see what they were saying since they compared Patriot to 3 other companies in the same financial sector. They provide financial comparisons between Patriot and Tvia, Telesis, and Dynatem. Like I said I paid for it, so don't ask for a link...there isn' one. GLTAL A Wright Investors' Service Research Report Provided By CorporateInformation.com Patriot Scientific Corporation 440 Wheelers Farms Road Milford, CT 06461 U.S.A. BASIC INFORMATION Ticker: PTSC 2005 Sales: 2,982,586 Primary SIC: Semiconductors and related devices (3674) Sector: Information Technology Industry: Semiconductor Equipment & Products Country: United States Currency: U.S. Dollars Fiscal Year ends: May Employees: 6 Exchanges: OTC Share Type: Market Capitalization: 384,918,642 Total Shares Outstanding: 349,926,038 Closely Held Shares: 2,930,879 Wright Comparative Business Analysis Report Report Date: 10/13/06 Company Description Patriot Scientific Corporation. The Group's principal activities are to develop, market and sell microprocessor technology and high-performance high-speed data communication products. These products enable computers and other data processing devices to communicate and can be used to connect to the Internet or other telecommunication networks. Technologies include Ignite microprocessor technology, JUICEtechnology, High-speed data communications technology and radar technology. These are used in wireless devices, smart cards, home appliances, gateways, set top boxes, entertainment technologies, automotive telematics, biomedical devices and industrial controllers. The Group's products and technology licenses are marketed in North America, Europe and Asia through a combination of direct sales and distributors. Competitor Analysis Patriot Scientific Corporation operates within the Semiconductors and related devices sector. This analysis compares Patriot Scientific with three other companies in this sector in the United States: Tvia, Inc. (2005 sales of $3.28 million of which 100% was Streaming Media Integrated Circuits), Telesis Technology Corporation ($2.61 million of which 100% was Aerospace Products), and Dynatem, Inc. ($2.49 million of which 100% was Micro Computers). Sales Analysis Sales increased substantially in 2005: During the year ended May of 2005, sales at Patriot Scientific were $2.98 million. This is an increase of 3,803.0% versus 2004, when the company's sales were $76,417.00 . Recent Sales at Patriot Scientific 0.7 0.3 0.4 0.1 0.1 3.0 2000 2001 2002 2003 2004 2005 (Figures in Millions of U.S. Dollars) The company's sales increased faster in 2005 than at all three comparable companies. While Patriot Scientific enjoyed a sales increase of 3,803.0%, the other companies saw smaller increases: Tvia, Inc. sales were up 42.1%, Telesis Technology Corporation increased 68.8%, and Dynatem, Inc. experienced a sales decline of 44.5%. The company currently employs 6. With sales of $2.98 million , this equates to sales of US$497,098 per employee. This is much higher than the three comparable companies, which had sales between US$16,005 and US$372,517 per employee. Note that some of the figures stated herein could be distorted based on exact classification of employees and subcontractors. Sales Comparisons (Fiscal Year ending 2005) Company Year Ended Sales (mlns) Sales Growth Sales/ Emp (US$) Largest Region Patriot Scientific May 2005 2.983 3,803.0% 497,098 the United States (100.0%) Tvia, Inc. Mar 2005 3.281 42.1% 16,005 Europe (34.0%) Telesis Technology Corporation Dec 2005 2.608 68.8% 372,517 the United States (100.0%) Dynatem, Inc. May 2005 2.487 -44.5% 130,869 the United States (100.0%) Recent Stock Performance In recent years, this stock has performed terribly. In 2000, the stock traded as high as $7.38, versus $1.10 on 10/13/06. (In 2000, the stock retreated significantly from its high, and by the end of the year was at $0.51). The stock price has more than doubled recently: For the 52 weeks ending 10/13/06, the stock of this company was up 1,011.1% to $1.10. During the past 13 weeks, the stock has increased 27.9%. During the past 52 weeks, the stock of Patriot Scientific has outperformed (by a large margin) the three comparable companies, which saw changes between -88.9% and 1.7%. During the 12 months ending 2/28/06, earnings per share totalled $0.07 per share. Thus, the Price / Earnings ratio is 15.71. These 12 month earnings are substantially greater than the earnings per share achieved during the calendar year ending last December, when the company reported earnings of 0.01 per share. This company is currently trading at 129.06 times sales. This is at a much higher ratio than all three comparable companies, which are trading between 0.37 and 8.97 times sales. Patriot Scientific is trading at 17.36 times book value. The company's price to book ratio is significantly higher than that of all three comparable companies, which are trading between 0.69 and 1.97 times book value. Summary of company valuations (as of 10/13/06). Company P/E Price/ Book Price/ Sales 52 Wk Pr Chg Patriot Scientific 15.7 17.36 129.06 1,011.10% Tvia, Inc. N/A 1.97 8.97 -43.84% Telesis Technology Corporation 42.7 0.69 0.37 -88.89% Dynatem, Inc. 30.8 1.22 0.72 1.65% The market capitalization of this company is $384.92 million . Management, directors, and other insiders own less than 2% of the outstanding stock. The capitalization of the floating stock (i.e., that which is not closely held) is $381.69 million . Dividend Analysis During the 12 months ending 2/28/06, Patriot Scientific paid dividends totalling $0.06 per share. Since the stock is currently trading at $1.10, this implies a dividend yield of 5.5%. None of the three comparable companies paid any dividends during the previous 12 months. During the quarter ended 2/28/06, the company paid dividends of $0.04 per share. During the same 12 month period ended 2/28/06, the Company reported earnings of $0.07 per share. Thus, the company paid 85.7% of its profits as dividends. Profitability Analysis The company's earnings before interest, taxes, depreciation and amorization (EBITDA) were $181,774.00 , or 6.1% of sales. This EBITDA margin is better than the company achieved in 2004, when the EBITDA margin was equal to -2,096.3% of sales. The three comparable companies had EBITDA margins that were all less (between -244.9% and -6.2%) than that achieved by Patriot Scientific. In 2005, earnings before extraordinary items at Patriot Scientific were -$2.69 million, or -90.3% of sales. This profit margin is an improvement over the level the company achieved in 2004, when the profit margin was -5,430.7% of sales. The company has reported losses before extraordinary items for each of the past 6 years. The company's return on equity in 2005 was -1,817.8%. (Extraordinary items have been excluded). Research and Development Research and Development Expenses at Patriot Scientific in 2005 were $294,735.00 , which is equivalent to 9.9% of sales. In 2005, R&D expenditures dropped both as a percentage of sales and in actual amounts: In 2004, Patriot Scientific spent $549,756.00 on R&D, which was 719.4% of sales. During each of the previous 4 years, the company has decreased the amount of money it has spent on Research and Development (in 2001, Patriot Scientific spent $2.22 million versus $294,735.00 in 2005). Financial Position As of May 2005, the company's long term debt was $45,942.00 and total liabilities (i.e., all monies owed) were $1.69 million. The long term debt to equity ratio of the company is very low, at only 0.02. This is significantly lower than the long term debt to equity ratio as of in May 2004, when the long term debt to equity ratio stood at 1.55. Patriot Scientific does not appear to be very efficient in collecting payments: As of May 2005, the accounts receivable for the company were $2.00 million, which is equivalent to 245 days of sales. This is sharply higher than at the end of 2004, when Patriot Scientific had 6 days of sales in accounts receivable. The 245 days of accounts receivable at Patriot Scientific are higher than all three comparable companies: Tvia, Inc. had 88 days, Telesis Technology Corporation had 19 days, while Dynatem, Inc. had 41 days outstanding at the end of the fiscal year 2005. Financial Positions Company Year LT Debt/ Equity Days AR R&D/ Sales Patriot Scientific 2005 0.02 245 9.9% Tvia, Inc. 2005 0.02 88 177.7% Telesis Technology Corporation 2005 0.04 19 0.0% Dynatem, Inc. 2005 0.00 41 22.1% Copyright 2001-2006 The Winthrop Corporation Distributed by Wright Investors' Service, Inc. All Rights Reserved Important Legal Notice THIS REPORT IS PROVIDED FOR GENERAL INFORMATION ONLY, IS NOT TO BE CONSIDERED AS INVESTMENT ADVICE AND SHOULD NOT BE RELIED UPON FOR INVESTMENT DECISIONS. NO REPRESENTATION OR WARRANTY IS MADE REGARDING THE ACCURACY, RELIABILITY OR TIMELINESS OF THE CONTENT. 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