American Technology Reports Fivefold Increase in Second Quarter Revenues;
Company Achieves
Improved Margins, Reduces Net Loss
SAN DIEGO--(BUSINESS WIRE)--May 5, 2004--American Technology
Corporation (ATC) (Nasdaq:ATCO), an innovator of proprietary sound
reproduction technologies, posted record revenues for the second
quarter of fiscal 2004, ended March 31, 2004. Revenue for the quarter
was $1.493 million compared to $0.238 million in the second quarter of
fiscal 2003, an increase of 526%. The company's Government/Force
Protection Group and Business Group generated revenues of $1.038
million and $0.455 million, respectively, in the second quarter.
Second quarter 2004 revenues increased 92% over the first quarter.
The company reported a gross profit of $0.548 million in the
second quarter compared to a gross loss of $0.113 million for the same
quarter in fiscal 2003. The company also reported a net loss of $1.165
million for the quarter, a 37% reduction from the net loss of $1.855
million for the same period in fiscal 2003. Net loss attributable to
common stockholders after deducting non-cash dividends on preferred
stock was $(0.08) per share compared to $(0.18) per share for the same
quarter last year.
SIX MONTH RESULTS
For the six months ended March 31, 2004, total revenue was $2.268
million compared to $0.662 million for the same period last year, a
243% increase. The company reported a gross profit of $0.914 million
compared to a gross loss of $0.010 million for the same six months in
fiscal 2003. The company had a net loss of $2.302 million during the
six months, a 36% reduction from the net loss of $3.585 million for
the same period in fiscal 2003. Net loss attributable to common
stockholders after deducting non-cash dividends on preferred stock was
$(0.15) per share for the first six months of fiscal 2004 compared to
$(0.31) per share for the same period last year.
MANAGEMENT COMMENTARY
"We are pleased with the record revenues achieved in the second
quarter by the combined efforts of our Business Group and our
Government/Force Protection Group," said Elwood G. Norris, chairman of
American Technology Corporation. "We are experiencing increasing
worldwide demand for our proprietary sound technologies and products
and expect continued revenue growth in the second half of fiscal 2004.
We look forward to providing further revenue guidance at our May 27
annual meeting of stockholders." The Company will be providing a live
webcast of the annual meeting. Details of the webcast will be
announced before the meeting.
"We have made important internal changes to our management and
operations and we are building strategic business relationships to
sell, manufacture, distribute and install our expanding portfolio of
sound products," added Kalani Jones, president and COO of ATC.
"Government Group revenues increased 50% from the first to the second
quarter as a result of increased LRAD(TM) deliveries to government
customers. Business Group revenues reflected increased HSS(R)
shipments and a major NeoPlanar(R) delivery. As a result of increasing
customer demand, we are growing our sales force in both our divisions
and we are adding product development teams to rapidly create new
solutions employing our HSS, LRAD, NeoPlanar and other sound
technologies."
HIGHLIGHTS AND ANNOUNCEMENTS FOR THE SECOND FISCAL QUARTER
-- Announced Long Range Acoustic Device (LRAD) is becoming
increasingly sought after by military and government agencies
for a range of applications because of its ability to be
highly directional while effectively communicating over long
distances.
-- Awarded $1.088 million contract to deliver LRADs(TM) to U.S.
Marine Corps Units.
-- Completed and delivered NeoPlanar(R) speakers for a major Las
Vegas venue.
-- Delivered LRADs to U.S. Marine Corps units as well as other
government/force protection agencies.
-- HSS shipments to new customers and reorders from existing
customers were up sharply in the second quarter. HSS units
have been purchased and are in several advanced trials, with
corporate users targeting thousands of systems each for
2004/2005 rollout. Business Group focusing on
point-of-purchase and digital signage applications, where HSS
is a unique and compelling solution.
-- Increasing media coverage of HSS and LRAD products and
applications is creating marketplace momentum and a strategic
technology position.
-- Promoted Kalani Jones to president.
About American Technology Corporation
American Technology Corporation is Shaping the Future of Sound(R)
by developing, manufacturing and globally distributing its proprietary
sound technologies and products which include: the award-winning
HSS(R) (HyperSonic(R) Sound Technology), NeoPlanar(R) Technology,
LRAD(TM) (Long Range Acoustic Device), PureBass(R) Sub-Woofer
Technology and Stratified Field(R) Technology (SFT(R)). The Company is
establishing a strong portfolio of patents, trademarks and
intellectual property, including over 140 U.S. and foreign patents and
patent filings to date. For more information on the company and its
technologies and products, please visit our web site at www.atcsd.com.
Safe Harbor statement under the Private Securities Litigation
Reform Act of 1995: Except for historical information contained
herein, the matters discussed are forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act. You should
not place undue reliance on these statements. We base these statements
on particular assumptions that we have made in light of our industry
experience and the stage of product and market development, as well as
our perception of historical trends, current market conditions,
current economic data, expected future developments and other factors
that we believe are appropriate under the circumstances. These
statements involve risks and uncertainties that could cause actual
results to differ materially from those suggested in the
forward-looking statements, including but not limited to changes in
the sound reproduction industry, our ability to develop future
products, technology shifts, potential technical or manufacturing
difficulties that could delay products, competition, pricing
pressures, the uncertainty of market acceptance of new products and
services by customers, warranty or other claims, the outcome of
pending or future litigation, general economic factors and other risks
identified and discussed in the Company's filings with the Securities
and Exchange Commission. These forward-looking statements are based on
information and management's expectations as of the date hereof.
Future results may differ materially from the Company's current
expectations. American Technology Corporation disclaims any intent or
obligation to update those forward-looking statements, except as
otherwise specifically stated.
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*T
AMERICAN TECHNOLOGY CORPORATION
Condensed Balance Sheets
(in thousands)
March 31, September 30,
2004 2003 (a)
(unaudited)
--------------- ---------------
ASSETS
Current Assets:
Cash $6,580 $9,850
Accounts receivable 1,406 184
Inventories 624 409
Prepaid expenses and other 82 34
--------------- ---------------
Total current assets 8,692 10,477
Equipment, net 245 200
Patents, net 1,226 1,067
--------------- ---------------
Total assets $10,163 $11,744
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $723 $604
Accrued liabilities 1,035 1,379
Capital lease short-term portion 10 10
--------------- ---------------
Total current liabilities 1,768 1,993
--------------- ---------------
Long-Term Liabilities 17 23
Stockholders' equity 8,378 9,728
--------------- ---------------
Total liabilities and stockholders'
equity $10,163 $11,744
=============== ===============
(a) Derived from audited financial statements as of September 30,
2003.
AMERICAN TECHNOLOGY CORPORATION
Condensed Statements of Operations
(in thousands except per share amounts)
(unaudited)
For the three For the six
months ended months ended
March 31, March 31,
----------------- -----------------
2004 2003 2004 2003
-------- -------- -------- --------
Revenues:
Product sales $1,493 $146 $2,112 $534
Contract and license - 92 156 128
-------- -------- -------- --------
Total revenues 1,493 238 2,268 662
Cost of revenues 945 351 1,354 672
-------- -------- -------- --------
Gross profit 548 (113) 914 (10)
-------- -------- -------- --------
Operating expenses:
Selling, general, and
administrative 1,079 909 2,152 1,665
Research and development 644 727 1,093 1,309
-------- -------- -------- --------
Total operating expenses 1,723 1,636 3,245 2,974
-------- -------- -------- --------
Loss from operations (1,175) (1,749) (2,331) (2,984)
Other income (expense): 10 (106) 29 (601)
-------- -------- -------- --------
Net loss (1,165) (1,855) (2,302) (3,585)
Dividend requirements on
convertible preferred stock 407 810 700 965
-------- -------- -------- --------
Net loss available to common
stockholders $(1,572) $(2,665) $(3,002) $(4,550)
======== ======== ======== ========
Net loss per share of common stock
- basic and diluted $(0.08) $(0.18) $(0.15) $(0.31)
======== ======== ======== ========
Average weighted number of common
shares outstanding 19,508 14,898 19,442 14,629
======== ======== ======== ========
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--30--TM/la*
CONTACT: American Technology Corporation
Investor relations:
Robert Putnam, 858-679-3168
robert@atcsd.com
or
Media inquiries:
Don Mathias, 949-855-4520
dwmath@aol.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: HARDWARE GOVERNMENT AEROSPACE/DEFENSE EARNINGS
SOURCE: American Technology Corporation
May-05-2004 13:20 GMT
Symbols:
DE;TC1 US;ATCO |
