Fonix Secures $20 Million Equity Line, Prepares for Continued Growth
May 20, 2003 5:01:00 PM ET
SALT LAKE CITY, May 20 /PRNewswire-FirstCall/ -- Fonix(R) Corporation (OTC Bulletin Board: FNIX), a leading provider of speech interface solutions, has entered into an agreement for a $20 million equity line. This fourth equity line enables Fonix to continue plans to market and deliver speech solutions to partners and customers.
"The new equity line will make it possible for Fonix to continue to move ahead," says Thomas A. Murdock, president and CEO. "Fonix is poised to aggressively market our speech solutions, and this financing supports those efforts."
Fonix continues to experience revenue growth as the demand for speech recognition and speech-based solutions also grows. Award-winning products and a commitment to excellence reinforce Fonix's stellar reputation with customers and partners. Fonix speech solutions are available for mobile phones, wireless devices, PCs, telephony systems and automobiles. With increasing demand for these solutions, Fonix anticipates continued quarterly revenue gains.
"The quality of our products and the determination of our team are evident in Fonix's increasing quarterly revenues," says Roger D. Dudley, executive vice president and CFO. "As revenue and cash from operations continues to grow, we will use less of the equity line to fund current operations. However, the equity line will assist the company to reduce its accrued liabilities and payables."
In connection with this equity line, the company filed a registration statement with the Securities and Exchange Commission to register the resale of the shares Fonix will issue in connection with draws on the line. This fourth equity line replaces the third equity line, and no further funds will be drawn against the prior equity line.
Visit www.fonix.com for an introduction to Fonix's complete suite of speech solutions.
About Fonix Corporation
Fonix Corporation (OTC Bulletin Board: FNIX) is a leading provider of natural-user speech interface solutions for wireless and mobile devices, telephony systems, and vehicle telematics. Leading chip manufacturers, independent software and hardware vendors, and service providers incorporate Fonix speech solutions to provide their customers with an easier and more convenient user experience. For additional information, visit www.fonix.com , or contact a Fonix representative at (801) 553-6600.
Investor Contact, Michelle Aamodt, (801) 553-6600, invrel@fonix.com .
Media Contact, Elizabeth Sweeten, (801) 553-6600, mediarel@fonix.com .
Note: The statements released by Fonix Corporation that are not purely historical are forward-looking within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995, include statements regarding the Company's expectations, hopes, intentions, and strategies for the future. Investors are cautioned that forward-looking statements involve risk and uncertainties that may affect the Company's business prospects and performance. It is important to note that the Company's actual results could differ materially from those in such forward-looking statements. Risk factors include general economic, competitive, governmental, and technological factors as discussed in the Company's filings with the SEC on Forms 10-K, 10-Q and 8-K. The Company does not undertake any responsibility to update the forward-looking statements contained in this release.
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