ATCO 3rd Qtr report..American Technology Reports Record Third Quarter Revenues
SAN DIEGO--(BUSINESS WIRE)--Aug. 4, 2004--American Technology
Corporation (ATC) (Nasdaq:ATCO), an innovator of proprietary sound
reproduction technologies, posted record revenues for the third
quarter of fiscal 2004, ended June 30, 2004. Revenue for the quarter
was $2.107 million compared to $0.314 million in the third quarter of
fiscal 2003, an increase of 572%. The company's Government/Force
Protection Group and Business Group generated revenues of $1.837
million and $0.270 million, respectively, in the third quarter. Third
quarter 2004 revenues increased 41% over the most recent second
quarter.
The company reported a gross profit of $1.101 million in the third
quarter compared to $0.128 million for the same quarter in fiscal
2003. The company also reported a net loss of $1.390 million for the
quarter, a 42% reduction from the net loss of $2.383 million for the
same period in fiscal 2003. Net loss attributable to common
stockholders after deducting non-cash dividends on preferred stock was
$(0.09) per share compared to $(0.19) per share for the same quarter
last year.
Nine Month Results
For the nine months ended June 30, 2004, total revenue was $4.375
million compared to $0.975 million for the same period last year, a
349% increase. The company reported a gross profit of $2.015 million
compared to $0.116 million for the same nine months in fiscal 2003.
The company had a net loss of $3.692 million during the nine months, a
38% reduction from the net loss of $5.969 million for the same period
in fiscal 2003. Net loss attributable to common stockholders after
deducting non-cash dividends on preferred stock was $(0.24) per share
for the first nine months of fiscal 2004 compared to $(0.51) per share
for the same period last year.
Management Commentary
"Three consecutive quarters of record revenues with expected
continued revenue growth this quarter evidence the initial market
traction of our industry-changing sound reproduction technologies,"
said Elwood G. Norris, chairman of American Technology Corporation.
"While our Government/Force Protection Systems Group continues to lead
the way, we are gaining momentum in our Business Group following its
realignment in the June 30 quarter. We are pleased to report we have
received the first HSS(R) Gen III units from our manufacturing
partner, Pemstar. These superior devices deliver higher sound pressure
level (SPL) with lower distortion in a slim, sleek profile."
"With HSS Gen III scheduled for full production this quarter, we
are well positioned to further address the focused audio requirements
of major customers in the rapidly developing digital signage
industry," said Kalani Jones, president and COO of ATC. "While HSS has
significant promise for several industries including, home theater,
automotive and flat panel televisions/monitors, we are primarily
focused on the digital signage industry for the following reasons:
-- Digital signage is expected to be a multi-billion dollar
market within the next five years.
-- Digital signage is a relatively new market being driven by
increasing availability of flat panel displays and
next-generation data networking equipment.
-- Most current and expected digital signage applications require
focused sound to minimize noise pollution and the effect of
multiple audio messages in host installations.
-- Major advertisers are turning to digital signage to counter an
increasingly fragmented broadcast, cable, and satellite
viewing audience.
"With $10 million to $100 million in total expenditures typically
being spent for the larger digital signage programs, the need for HSS
to give these systems a voice is readily apparent," added Jones.
"While the structure of the larger digital signage programs in which
we are engaged are complex, involve several companies, and require
in-depth trials through multiple test installations, the successful
completion of **any one** of these programs can be worth $1-$14 million
dollars each in revenue to ATC over the next six to twenty-four
months."
Jones continued, "We are pleased to report Carl Gruenler and the
Government/Force Protection Systems Group just completed a successful
GOVSEC 2004 (The Government and Security Expo and Conference), and
held favorable product demonstrations for key Department of Defense
and Homeland Security executives in Washington, D.C. last week. GOVSEC
2004, as well as a two-page inside cover advertisement in the
inaugural annual publication of 'The Year in Homeland Security'
currently being sent to over 150,000 federal, state and local
government and law enforcement officials, represent an introduction of
ATC to a much wider audience. These initiatives plus numerous others,
are part of our plan to establish ATC as the new leader in innovative
sound reproduction solutions for force protection, emergency
notification and safety systems throughout government and industry.
"ATC is supporting technology demonstration projects with the
Department of Homeland Security for border protection, law enforcement
for crowd and riot control, the commercial maritime industry for
waterside protection, and major infrastructure force protection
projects in various parts of the world. Additionally, with the recent
issuance of 'urgent needs statements' by multiple services, LRAD(TM)
is positioned as a key force protection tool to compete for
end-of-fiscal-year government funding and 'program of record'
contracts."
Jones concluded, "We will be giving further revenue guidance, and
expect to announce a new leader of our Business Group, later this
quarter."
Highlights and Announcements for the Third Fiscal Quarter
-- Awarded contract to deliver LRAD devices to a U.S. Army
Stryker unit for use in missions in and around Mosul, Iraq.
-- Awarded contract to deliver LRAD devices to the U.S. Navy 5th
Fleet for use in and around the Basra, Iraq fueling terminal.
-- Completed and delivered LRAD remotely operated pan/tilt units
with integrated camera to Naval Surface Warfare Center Crane
for the warship integrated force protection system.
-- Awarded contract to develop and deliver the next generation
aircraft carrier flight deck speaker system for the U.S. Navy.
-- Completed key NeoPlanar(R) projects on the shipyard waterfront
for the Supervisor of Shipbuilding, Bath, Maine, and inside
the new construction aircraft hangar at Naval Air Station
Brunswick, Maine for the Naval Facilities Command.
-- Launched a Government Group new products development
initiative to explore new technology and product
opportunities.
-- Showcased HSS at Wired Nextfest.2004.
-- Held successful showing of HSS at InfoComm 2004 (the largest
professional audio/visual trade show in the U.S.).
-- Announced manufacturing partner, PEMSTAR Inc.
-- Continued press and media coverage of HSS and LRAD products
and applications
-- Announced the hiring of Michael A. Russell as chief financial
officer.
About American Technology Corporation
American Technology Corporation is Shaping the Future of Sound(R)
by developing, manufacturing and globally distributing its proprietary
sound reproduction technologies and products which include: the
award-winning HSS(R) (HyperSonic(R) Sound); LRAD(TM) (Long Range
Acoustic Device); NeoPlanar(R); PureBass(R) Sub-Woofer; and Stratified
Field(R) (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, 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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AMERICAN TECHNOLOGY CORPORATION
Condensed Balance Sheets
(in thousands)
June 30, September
2004 30, 2003
(unaudited) (a)
--------- ---------
ASSETS
Current Assets:
Cash $5,486 $9,850
Accounts receivable 1,387 184
Inventories 898 409
Prepaid expenses and other 255 34
--------- ---------
Total current assets 8,026 10,477
Equipment, net 407 200
Patents, net 1,249 1,067
--------- ---------
Total assets $9,682 $11,744
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $1,034 $604
Accrued liabilities 1,231 1,379
Capital lease short-term portion 11 10
--------- ---------
Total current liabilities 2,276 1,993
--------- ---------
Long-Term Liabilities 15 23
Stockholders' equity 7,391 9,728
--------- ---------
Total liabilities and stockholders' equity $9,682 $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 nine
months ended months ended
June 30, June 30,
---------------- ----------------
2004 2003 2004 2003
------ ------ ------ ------
Revenues:
Product sales $2,089 $275 $4,201 $808
Contract and license $18 39 174 167
------ ------ ------ ------
Total revenues 2,107 314 4,375 975
Cost of revenues 1,006 186 2,360 859
------ ------ ------ ------
Gross profit 1,101 128 2,015 116
Operating expenses:
Selling, general and
administrative 1,614 1,728 3,766 3,394
Research and development 890 714 1,984 2,023
------ ------ ------ ------
Total operating expenses 2,504 2,442 5,750 5,417
------ ------ ------ ------
Loss from operations (1,403) (2,314) (3,735) (5,301)
Other income (expense): 13 (69) 43 (668)
------ ------ ------ ------
Net loss (1,390) (2,383) (3,692) (5,969)
Dividend requirements on
convertible preferred stock 387 628 1,088 1,594
------ ------ ------ ------
Net loss available to common
stockholders $(1,777) $(3,011) $(4,780) $(7,563)
====== ====== ====== ======
Net loss per share of common stock
-- basic and diluted $(0.09) $(0.19) $(0.24) $(0.51)
====== ====== ====== ======
Average weighted number of common
shares outstanding 19,720 15,447 19,534 14,903
====== ====== ====== ======
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--30--CS/la*
CONTACT: American Technology Corporation
Robert Putnam (investor relations), 858-679-3168
robert@atcsd.com
or
Don Mathias (media inquiries), 949-855-4520
dwmath@aol.com
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: MANUFACTURING HARDWARE GOVERNMENT
AEROSPACE/DEFENSE EARNINGS PRODUCT
SOURCE: American Technology Corporation
Aug-04-2004 13:01 GMT
Symbols:
DE;TC1 US;ATCO |
