American Technology Corporation Reports Fiscal 2003 Results
SAN DIEGO, California, December 29, 2003 - American Technology Corporation (NASDAQ: ATCO) (ATC) announced today increased sound product revenue for the fiscal year ended September 30, 2003. Total revenue for fiscal 2003 was $1.3 million compared to $1.0 million in fiscal 2002, an increase of 30%. Sound product and related contract and licensing revenue was $1.2 million or 93% of fiscal 2003 revenues, an 80% increase from $0.67 million or 66% of fiscal 2002 revenues.
The net loss for fiscal 2003 was $8.23 million, comparable to the $8.22 million net loss for fiscal 2002. Deemed dividends ($2.22 million) and 6% accretion ($0.19 million) on preferred stock of $2.41 million in fiscal 2003 and $0.28 million in fiscal 2002 increased the net loss available to common stockholders to $10.6 million ($0.67 per common share) and $8.5 million ($0.60 per common share), respectively. The deemed dividends imputed for the value of warrants issued with preferred stock in fiscal 2003 of $2.22 million are not cash costs or contractual obligations of the Company to pay such imputed dividends.
The net loss for the year included $2.5 million expended on product research and development and also included selling, general and administrative costs of $4.86 million, $0.68 million of interest expense and a $0.23 million gross loss on revenues. Included in the aforementioned costs was $1.2 million for the cost of stock and options charged to expense and $0.4 million of debt amortization recorded as interest expense. The Company had cash and cash equivalents of $9.8 million at September 30, 2003.
Mr. Kalani Jones, chief operating officer commented:
"In fiscal 2003 the Company was in transition from being an advanced development organization to preparing for volume production and sales support. We also incurred significant costs in the introduction and production start-up of new sound products. We made substantial investments in research and development, expanding our intellectual property rights. While our sound products revenue is only in its infancy, as we have just commenced sales of our HSS®, NeoPlanar® and LRAD™ product lines, we are structuring our internal resources to enable significant growth in 2004 and beyond.
Based on current quarter bookings, we expect to report strong revenue growth in our first fiscal 2004 quarter (ending December 31, 2003). Government and Force Protection Systems Group (Government Group) revenue in this quarter is expected to exceed that of the entire previous fiscal year. We remain very optimistic about the prospects for our Government Group and look for a significant contribution from it in fiscal 2004.
With the increasing demand for new directed sound communications and advertising solutions, our Business Group is focused on growing HSS and NeoPlanar revenues with improved margins in fiscal 2004." |
