American Technology Corporation Files for Extension of Annual Report on Form 10-K,... [FRHFVVY]
American Technology Corporation Files for Extension of Annual Report on Form 10-K, Expects to File on or before December 29, 2005; Company Expects to Report Revenues of Approximately $10.2 Million for Fiscal Year Ended September 30, 2005
SAN DIEGO--(Business Wire)--Dec. 15, 2005--
American Technology Corporation (ATC) (NASDAQ:ATCO), an
innovator of directed sound products and technologies, announced today
it was not able to file its Form 10-K for the fiscal year ended
September 30, 2005 by the due date of December 14, 2005 without
unreasonable effort or expense because of delays in performing
additional procedures with respect to its year-end financial
statements, and Swenson Advisors, LLP, the company's independent
registered public accounting firm, will require additional time to
complete its audit of such financial statements.
In addition, management requires additional time to complete its
report on management's assessment of the company's internal control
over financial reporting required by Section 404 of the Sarbanes-Oxley
Act of 2002. Audit adjustments to date have resulted in management's
identification of material weaknesses in the company's internal
control over financial reporting. As a result of these material
weaknesses, management will report that the company's internal control
over financial reporting was not effective as of September 30, 2005.
"Like many companies first complying with Sarbanes-Oxley, ATC is
finding that its internal controls are not sufficient to meet the
Sarbanes-Oxley standards," said John Zavoli, ATC's new president and
chief operating officer. "Since my start date last month, I have
worked on adding the resources and controls necessary to address the
deficiencies in our accounting, finance and operations functions. We
are addressing these issues and expect to file our annual report on
Form 10-K on or before December 29, 2005."
ATC expects to report in the Form 10-K revenues of approximately
$10.2 million for the fiscal year ended September 30, 2005 as compared
with the previous fiscal year's revenues of $5.8 million. Gross profit
for fiscal 2005 is expected to be approximately $4.5 million or 44% of
revenues, compared to $2.3 million or 40% of revenues for fiscal 2004.
The increase in revenues and gross profit is principally the result of
an increase of sales of the company's LRAD products. ATC expects
selling, general and administrative expenses to be approximately $9.1
million or 89% of revenues for fiscal 2005, compared with $5.3 million
or 92% of revenues for fiscal 2004. Research and development costs are
expected to be $4.6 million or 45% of revenues for 2005, a 54%
increase from $3.0 million in 2004. ATC made heavy investments in
fiscal 2005 completing new HSS(R), portable LRAD(TM), and
NeoPlanar(R)-based products, and in growing its sales and marketing
organization. Loss from operations is expected to be approximately
$9.3 million for fiscal 2005 compared to $6.0 million for fiscal 2004.
The increase in loss in fiscal 2005 resulted from increases in
selling, general and administrative expenses and research and
development expenses, partially offset by increased gross profit.
Based on the procedures and audit still underway, there may be
additional adjustments to the fiscal 2005 results.
About American Technology Corporation
American Technology Corporation is Shaping the Future of Sound(R)
through its proprietary directed sound products and technologies which
include: the award-winning HSS(R) (HyperSonic(R) Sound technology);
LRAD(TM) (Long Range Acoustic Device) products family; NeoPlanar(R)
products family, Sound Vector(TM) technology, and others. The Company
is establishing a strong portfolio of patents, trademarks, and
intellectual property including over 320 U.S. and foreign patents and
pending patent applications 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: This press release contains forward-looking
statements within the meaning of the Securities Act of 1933 and the
Securities Exchange Act of 1934, including statements relating to the
company's expectation that it will file its 2005 Form 10-K on or
before December 29, 2005 and the company's expected financial results
to be reported in the 2005 Form 10-K. These forward-looking statements
involve a number of risks and uncertainties, including uncertainties
related to the results and completion of the audits of the company's
financial statements and assessment of its internal control over
financial reporting. These and other factors could cause the company's
actual results to differ materially from what it projects in its
forward-looking statements, and could delay the filing of the Form
10-K beyond the December 29, 2005 extended filing deadline. These
forward-looking statements are based on information and management's
expectations as of the date of this press release. For more
information regarding other potential risks and uncertainties, see the
"Business Risks" section of the company's most recent Form 10-Q for
the quarter ended June 30, 2005 and the "Risk Factors" section of the
company's Form 10-K/A for the year ended September 30, 2004. The
company disclaims any intent or obligation to update these
forward-looking statements.
American Technology Corporation
Investor relations:
Robert Putnam, 858-679-3168
robert@atcsd.com
or
Media inquiries:
Don Mathias, 949-855-4520
dwmath@aol.com
Copyright Business Wire 2005
15Dec05 13:00 GMT
Symbols:
de;TC1 us;ATCO |
