(PR NEWSWIRE) Spatializer Audio Laboratories, Inc. Reports 652% Increase In F
Spatializer Audio Laboratories, Inc. Reports 652% Increase In Fourth Quarter
Revenues and Record Profitability
Growth in Fourth Quarter Revenues and Net Income Provides Momentum
As Spatializer Emerges From Turnaround to Growth Mode
Year End Financials Highlight Enhanced Cash Position and Significantly
Improved Balance Sheet Resulting From Recent Financing and Debt Conversion
CEO Mandell Outlines Growth Initiatives, Including Emphasis on Research
To Develop New Audio and Voice Over IP Technologies
WOODLAND HILLS, Calif., March 21 /PRNewswire/ -- Spatializer Audio
Laboratories, Inc. (OTC Bulletin Board: SPAZ) today announced significantly
improved operating results for the fourth quarter and year ended
December 31, 1999. Revenues for the fourth quarter of fiscal 1999 increased
to $684,000 compared to $91,000 in the comparable period last year, an
increase of 652%. Net Income for the fourth quarter ended December 31, 1999
was $308,000, $0.01 per share, compared to a net loss of ($2,655,000),
($0.11) per share in the prior year.
Revenues for the year ended December 31, 1999 were $1,660,000, compared to
$1,680,000 in the prior year, a decrease of 1%. Net Income for the year ended
December 31, 1999 was $355,000, $0.01 per share compared to a net loss of
($5,792,000), ($0.29) per share in the prior year.
Working Capital increased to $395,000 at December 31, 1999 as compared to
a working capital deficit of ($1,975,000) at December 31, 1998. Shareholders'
Equity at December 31, 1999 increased to $768,000 compared to a shareholders'
deficit of ($1,553,000) at December 31, 1998. Cash at December 31,1999
increased to $1,022,000 compared to $264,000 at December 31, 1998. The
improvement in the Company's liquidity result from the private placement of
$1,050,000 of common stock, at no discount to market, profitable operating
results and the conversion of $1 million of short term debt to Series B
Redeemable Convertible Preferred Stock in December 1999.
"Last year at this time, we outlined our plan to refocus Spatializer on
its core competency as a leading provider of audio technology for the consumer
electronics and PC markets and to make the Company profitable. I am pleased
to report in announcing these profitable operating results that we have
successfully achieved our objectives, which sets us apart from our nearest
competitors," stated Henry R. Mandell, Chairman of the Board and Chief
Executive Officer. "In addition to these achievements, we have made
fundamental changes to our business model and corporate culture, expanded the
breadth of our technology offerings and business relationships, and procured
the financial resources to leverage our 1999 success to provide momentum to
aggressively grow our business."
"Specifically," Mr. Mandell continued, "We set out to aggressively exploit
our existing technology to generate immediate new revenue streams. Technology
licensing deals with Apple Computer, Inc., who have incorporated our suite of
technologies across their hardware platforms, Acer Labs, Inc. and several DVD
player design wins with Samsung, LG Electronics, Zenith, Hitachi and Marantz,
among others, were the result of these efforts. Indeed, based on our success
in the DVD player market, we believe that Spatializer N-2-2(TM) is positioned
as the leading virtual surround sound technology in that market with
approximately a 40% market share based on industry reported sales. We
streamlined our overhead structure. In doing so, we were able to restore
profitablity and generate a 21% return on sales. At the same time, we have
transitioned from flat fee licenses, which limited revenue growth, to a
running royalty business model that provides the Company with upside in the
fast growing DVD player and digital audio markets. We laid the ground work to
capitalize on emerging market opportunities, by launching StreamFX(TM), our
streaming audio enhancement product for the Internet, Vi.B.E(TM), our virtual
bass enhancement technology, and by aligning ourselves with VM Labs and their
revolutionary NUON(TM) digital signal processor, targeted at the computer
gaming market. Lastly, we put the Company's liquidity crisis behind us by
obtaining financing, with minimal dilution to the stockholders, to provide the
resources to vigorously pursue growth."
Mr. Mandell concluded, "While we are pleased with the extent of our
turnaround and the resultant profitable operating results, we will not be
satisfied with the status quo. The digital audio revolution is here and
Spatializer's technology portfolio and relationships with world class
manufacturers strategically positions us to capitalize on this revolution. We
have four objectives over the next twelve months. First, to secure the
(PR NEWSWIRE) Spatializer Audio Laboratories, Inc. Reports 652% Increase In F
Spatializer Audio Laboratories, Inc. Reports 652% Increase In Fourth Quarter
Revenues and Record Profitability
Growth in Fourth Quarter Revenues and Net Income Provides Momentum
As Spatializer Emerges From Turnaround to Growth Mode
Year End Financials Highlight Enhanced Cash Position and Significantly
Improved Balance Sheet Resulting From Recent Financing and Debt Conversion
CEO Mandell Outlines Growth Initiatives, Including Emphasis on Research
To Develop New Audio and Voice Over IP Technologies
WOODLAND HILLS, Calif., March 21 /PRNewswire/ -- Spatializer Audio
Laboratories, Inc. (OTC Bulletin Board: SPAZ) today announced significantly
improved operating results for the fourth quarter and year ended
December 31, 1999. Revenues for the fourth quarter of fiscal 1999 increased
to $684,000 compared to $91,000 in the comparable period last year, an
increase of 652%. Net Income for the fourth quarter ended December 31, 1999
was $308,000, $0.01 per share, compared to a net loss of ($2,655,000),
($0.11) per share in the prior year.
Revenues for the year ended December 31, 1999 were $1,660,000, compared to
$1,680,000 in the prior year, a decrease of 1%. Net Income for the year ended
December 31, 1999 was $355,000, $0.01 per share compared to a net loss of
($5,792,000), ($0.29) per share in the prior year.
Working Capital increased to $395,000 at December 31, 1999 as compared to
a working capital deficit of ($1,975,000) at December 31, 1998. Shareholders'
Equity at December 31, 1999 increased to $768,000 compared to a shareholders'
deficit of ($1,553,000) at December 31, 1998. Cash at December 31,1999
increased to $1,022,000 compared to $264,000 at December 31, 1998. The
improvement in the Company's liquidity result from the private placement of
$1,050,000 of common stock, at no discount to market, profitable operating
results and the conversion of $1 million of short term debt to Series B
Redeemable Convertible Preferred Stock in December 1999.
"Last year at this time, we outlined our plan to refocus Spatializer on
its core competency as a leading provider of audio technology for the consumer
electronics and PC markets and to make the Company profitable. I am pleased
to report in announcing these profitable operating results that we have
successfully achieved our objectives, which sets us apart from our nearest
competitors," stated Henry R. Mandell, Chairman of the Board and Chief
Executive Officer. "In addition to these achievements, we have made
fundamental changes to our business model and corporate culture, expanded the
breadth of our technology offerings and business relationships, and procured
the financial resources to leverage our 1999 success to provide momentum to
aggressively grow our business."
"Specifically," Mr. Mandell continued, "We set out to aggressively exploit
our existing technology to generate immediate new revenue streams. Technology
licensing deals with Apple Computer, Inc., who have incorporated our suite of
technologies across their hardware platforms, Acer Labs, Inc. and several DVD
player design wins with Samsung, LG Electronics, Zenith, Hitachi and Marantz,
among others, were the result of these efforts. Indeed, based on our success
in the DVD player market, we believe that Spatializer N-2-2(TM) is positioned
as the leading virtual surround sound technology in that market with
approximately a 40% market share based on industry reported sales. We
streamlined our overhead structure. In doing so, we were able to restore
profitablity and generate a 21% return on sales. At the same time, we have
transitioned from flat fee licenses, which limited revenue growth, to a
running royalty business model that provides the Company with upside in the
fast growing DVD player and digital audio markets. We laid the ground work to
capitalize on emerging market opportunities, by launching StreamFX(TM), our
streaming audio enhancement product for the Internet, Vi.B.E(TM), our virtual
bass enhancement technology, and by aligning ourselves with VM Labs and their
revolutionary NUON(TM) digital signal processor, targeted at the computer
gaming market. Lastly, we put the Company's liquidity crisis behind us by
obtaining financing, with minimal dilution to the stockholders, to provide the
resources to vigorously pursue growth."
Mr. Mandell concluded, "While we are pleased with the extent of our
turnaround and the resultant profitable operating results, we will not be
satisfied with the status quo. The digital audio revolution is here and
Spatializer's technology portfolio and relationships with world class
manufacturers strategically positions us to capitalize on this revolution. We
have four objectives over the next twelve months. First, to secure the
position of Spatializer N-2-2 as the de facto standard for virtual surround
sound in not only the global DVD player market, but in a wide range of
applications including set top boxes, internet appliances and gaming. Second,
to penetrate the market for audio enhancement in portable music devices,
including MP3 players. Third, to significantly expand the E-commerce
opportunities for StreamFX and the use and distribution of our technology over
the Internet. Lastly, we intend to develop new applications and technology to
comprehensively embrace audio and voice enhancement for emerging markets such
as internet telephony, satellite radio, voice over IP and cellular
communications. Quite simply, we intend to emphasize the laboratories aspect
of our corporate name and commit substantial resources in this effort.
Knowing what we have achieved this past year under difficult circumstances,
and now that we are financially unshackled, we are optimistic for achieving
greater success. We look forward to the next twelve months and to reporting
on the Company's progress."
Spatializer Audio Laboratories, Inc. is a leading developer, licensor and
marketer of next-generation technologies for the consumer electronics,
computing and entertainment industries. The company's advanced audio
technology is incorporated into consumer electronics audio, video and DVD
products from global brand leaders including Toshiba, JVC, Panasonic, Hitachi,
Samsung, Acer, Sharp, Sanyo, Goldstar, Emerson, Zenith and Proton, in PC
multimedia systems and peripherals from Apple, Dell, Gateway, Hewlett Packard,
Sony, Fujitsu, Seiko-Epson, NEC, Micron and Labtec, in silicon with
Matsushita, ESS, Zoran, Motorola, C-Cube, Acer Laboratories Inc., VM Labs,
Inc. and OnChip Systems, and in software compatible with MP3 players such as |
