CARLSBAD, Calif., April 9 /PRNewswire-FirstCall/ -- Patriot Scientific Corporation ( 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.