(COMTEX) B: Spatializer Audio Laboratories, Inc. Reports Second Quarter
B: Spatializer Audio Laboratories, Inc. Reports Second Quarter Operating
Results The Company Also Announces the Filing of a Registration Statement
Amendment To Continue Its Obligation for the Registration for Resale of
Existing Common Stock and Common Stock Issuable Under Existing Warrants, Which
Represent A 50% Reduction From the Prior Year
SANTA CLARA, Calif., Aug 3, 2001 /PRNewswire via COMTEX/ -- Spatializer Audio
Laboratories, Inc. (OTC Bulletin Board: SPAZ) today announced its financial
results for the second quarter ended June 30, 2001.
(Photo: newscom.com )
Revenues for the second quarter of fiscal 2001 were $485,000, compared to
revenues of $530,000 in the second quarter of fiscal 2000, a decrease of 8%.
Revenues for the six months ended June 30, 2001 were $912,000 compared to
revenues of $1,036,000 in the comparable six-month period last year.
The company reported net loss for the quarter of $98,000, $0.00 basic and
diluted per share, compared with net income of $112,000, $0.00 basic and diluted
per share, in the comparable period last year. Net loss for the six months ended
June 30, 2001 was $92,000, $0.00 basic and diluted per share, compared to net
income of $283,000, $0.00 basic and diluted per share, in the comparable six
month period last year.
The decrease in revenues in the three and six-month periods result primarily
from a flat fee royalty buy-out from a particular customer in the three and
six-month periods ended June 30, 2000, for which there were no revenues from
that customer in the current periods. In addition, the Company earned lower
royalties due to a weakness in the sale of analog ICs by a major account, and
continued weakness in PC sales worldwide and its impact on royalties from
another major account. This was partially offset by increased royalties for
Spatializer N-2-2(TM) from the DVD player market.
The net loss for the three and six month periods are primarily the result of the
decrease in revenue and an increase in operating expenses, primarily for
research and development. The Company previously reported that it had
accelerated its hiring program to capitalize on a brief supply of engineering
talent in the Silicon Valley as a result of industry layoffs. In addition, the
Company stepped up its use of outside consultants to move several projects
closer to completion.
"Our technology portfolio is being well received by prospective licensees as
both a means to enhance audio performance while at the same time reducing
overall component costs," stated Henry R. Mandell, Chairman and CEO of
Spatializer. "As such, we are comfortable making significant increases in our
engineering staff and capabilities, even at the cost of a running at a modest
loss until revenue streams catch up. With technology moving ahead rapidly and
its impact on shortening product lifecycles, a technology company such as ours
simply cannot afford to rest on its laurels. Our focus is clearly on building
for the future, and our future is in new products and technology."
Mandell continued, "We recognize that the market in general is experiencing
softness in IC sales and PC sales. Even the DVD player market, where sales are
running about 50% ahead of last year, is not immune to short-term fluctuations.
We'll keep a watchful eye on these trends and make prudent adjustments along the
way, such as the cost reduction initiatives I outlined two weeks ago. However,
we must keep in mind that Spatializer is, above all else, an intellectual
property developer and licensor. The ultimate strength and value of our Company
is in its intellectual property and its ability to monetize it, which I think
very clearly puts the cost of our R&D program in its proper long-term focus."
Separately, the Company announced that it has filed a post-effective Amendment
No. 2 to Form S-3 on Form S-1 Registration Statement to continue the
registration for resale of approximately 4.4 million shares Common Stock,
comprised of approximately 2.2 million issued shares, which are currently
included in shares outstanding and approximately 2.2 million shares of Common
Stock issuable on the exercise of currently outstanding warrants. The previously
issued common stock is comprised of shares issued in the December, 1999
financing and performance shares held in escrow for employees, directors and
consultants which have been released annually from escrow since 1996, and which
become taxable income to the recipient upon escrow release. The warrants were
primarily issued as part of the April 1998 and December 1999 financing
transactions and are currently exercisable at prices well in excess of the
current market stock price. The current Amendment covers approximately 50% fewer
shares than the prior amendment, reflecting the resale of at least 2 million
shares over the past year. The Company has been obligated to maintain current
registration on all of the common stock and warrants arising from the April,
1998 and December, 1999 financing transactions since their inception.
This press release does not constitute an offer to sell, or a solicitation of an
offer to buy nor shall there be any sale of the Company's capital stock in any
state in which such offer, solicitation or sale would be unlawful prior to
registration or qualification under the securities laws of such state. Copies of
the Company's Post- Effective Amendment No. 2 to Form S-3 on Form S-1
Registration Statement may be inspected and copied at the public reference
section of the Securities and Exchange Commission at 450 Fifth Street, NW.,
Washington, D.C. 20549 and can also be obtained by mail at prescribed rates from
the public reference section of the Commission at the same address.
About Spatializer
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, LG, Zenith and Proton, in PC multimedia systems and peripherals from
Apple and Labtec, in silicon from Matsushita, Texas Instruments, Cirrus Logic,
New Japan Radio Corporation, Zoran, Motorola, C-Cube, Tvia, VM Labs, LinkUp and
Acer Laboratories Inc, and in software compatible with MP3 players such as
WinAmp and embedded with RISC cores from MIPS Technologies. Spatializer stock is
traded on the OTC Bulletin Board under the symbol: SPAZ. The company is
headquartered in Santa Clara, CA, with marketing offices in Tokyo, Japan.
Further information may be obtained from the company's web site,
www.spatializer.com, Spatializer's SEC filings, and by contacting the company's
Investor Relations Department at 408-296-0600 or by writing to
investor@spatializer.com.
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