American Technology Reports Improved Fiscal Year 2007 Revenue and Operating
Results
Company Expects Significant Revenue Growth in Fiscal 2008
SAN DIEGO, Jan 08, 2008 (BUSINESS WIRE) -- American Technology Corporation (ATC)
(ATCO), a leader in the innovation and production of directed sound products and
technologies, today announced improved revenue and operating results for its
fiscal year ended September 30, 2007 (fiscal 2007).
Revenues for fiscal 2007 increased 10% to $9.9 million compared to $9.0 million
for the fiscal year ended September 30, 2006 (fiscal 2006). The increase in
fiscal 2007 revenues reflected an increase in LRAD(R) revenues from $5.6 million
in fiscal 2006 to $7.7 million in fiscal 2007, due primarily to expanded sales
distribution. HSS(R) revenues decreased from $2.4 million in fiscal 2006 to $1.3
million in fiscal 2007, due to the financial difficulties of key customers in the
digital signage and in-store broadcasting markets. The fiscal 2007 revenue amount
is slightly lower than ATC's earlier estimate of $10.0 million because the
Company was unable to recognize a $286,000 mid-September LRAD shipment that did
not meet revenue recognition criteria until October.
Gross profit for fiscal 2007 was $3.4 million or 34% of revenues, compared to
$2.9 million, or 32% of revenues, for the prior fiscal year. The increase in
gross profit, both absolute and as a percentage of revenues, was principally the
result of increased sales of higher margin LRAD products, offset by an increase
in inventory reserves, primarily related to excess HSS components that were
purchased based on a sales contract with a customer who later experienced
financial difficulty and significantly reduced its requirements.
Selling, general and administrative expenses for the year ended September 30,
2007 decreased $2.5 million to $7.1 million or 71% of total revenues, compared to
$9.5 million, or 106% of total revenues, for the year ended September 30, 2006.
The majority of the decrease came from significantly reduced personnel and
related expenses and lower legal and accounting costs. The reductions were offset
by an increase of $973,000 for non-cash stock-based compensation expense under
SFAS No. 123(R) and $521,000 of costs associated with a voluntary review of
historical stock option and stock grants and the related restatement of financial
statements.
The operating loss for fiscal 2007 decreased to $5.9 million compared to $8.6
million for the prior year ended September 30, 2006. The significant decrease in
loss from operations in fiscal 2007 resulted primarily from an increase in
revenues and gross profit from growing LRAD deliveries and reductions in
operating expenses.
The net loss for fiscal 2007 decreased 28% to $5.6 million or $(0.18) per share,
compared to a net loss of $7.7 million or $(0.31) per share for fiscal 2006.
The Company also announced that on January 3, 2008, it received a Nasdaq Staff
Determination Notice indicating that the Company was not in compliance with the
requirement for continued listing set forth in Nasdaq Marketplace Rule
4310(c)(14) because it had not filed its Form 10-K for the period ended September
30, 2007 as of the date of the Notice, and that its common stock was therefore
subject to delisting from The Nasdaq Capital Market. This delisting notification
is standard procedure when a Nasdaq-listed company fails to complete a required
filing in a timely manner. With the January 7, 2008 filing of its Form 10-K for
the period ended September 30, 2007, ATC believes it has regained compliance with
the continued listing requirements. In the event the Nasdaq Staff were to
determine otherwise, ATC would submit a timely request for a hearing before a
Nasdaq Listing Qualifications Panel, which request will stay any delisting action
pending the hearing and determination by the Panel.
"We expect significant revenue growth in fiscal year 2008 led by growing LRAD
shipments to public and private security firms, the oil and gas industry, and
U.S. and international government and military organizations," commented Tom
Brown, president and chief executive officer of American Technology Corporation.
"We also expect more revenues from our HSS and NeoPlanar(R) directed sound
product lines this fiscal year. Due to the timing of material events, we expect
to host our next conference call in early February in conjunction with the filing
of our Form 10-Q for the period ended December 31, 2007."
About American Technology Corporation
American Technology Corporation is Shaping the Future of Sound(R) by providing
directed audio solutions that place clear, highly intelligible sound exactly
where needed. ATC's Long Range Acoustic Device (LRAD(R)), HyperSonic(R) Sound,
and NeoPlanar(R) product lines make up the core of an expanding portfolio of
directed sound products and technologies. For more information about ATC and its
directed sound solutions please visit the company's web site at
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, the
performance of our management team, market acceptance of our directed sound
technologies and products, entry of competitors, the possibility our intellectual
property protections will not prevent others from marketing products similar to
or competitive with our products, potential technical or manufacturing
difficulties that could delay product deliveries or increase warranty costs, and
other risks identified and discussed in our 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 our current expectations. For more information regarding other
potential risks and uncertainties, see the "Risk Factors" section of the
company's Form 10-K for the year ended September 30, 2007. American Technology
Corporation disclaims any intent or obligation to update those forward-looking
statements, except as otherwise specifically stated.
American Technology Corporation
Condensed Balance Sheets
(000's omitted)
September 30, September 30,
20072006
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents$ 6,415$ 9,896
Accounts receivable, net9381,950
Inventories, net3,8034,450
Prepaid expenses and other259244
------------- -------------
Total current assets11,41516,540
Equipment, net422694
Patents, net1,3641,416
Deposits5858
------------- -------------
Total assets$13,259$18,708
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$722$ 1,904
Accrued liabilities8711,978
------------- -------------
Total current liabilities1,6433,882
Long-term liabilities:
Extended warranty--2
Derivative warrant instrument--1,221
------------- -------------
Total liabilities1,6435,105
------------- -------------
Total stockholders' equity11,61613,603
------------- -------------
Total liabilities and stockholders' equity$13,259$18,708
============= =============
American Technology Corporation
Condensed Statements of Operations
(000's omitted except share and per share amounts)
20072006
------------ ------------
Total revenues$9,901$9,001
Cost of revenues6,5096,150
------------ ------------
Gross profit3,3922,851
------------ ------------
Operating expenses:
Selling, general and administrative7,0529,537
Research and development2,2231,910
------------ ------------
Total operating expenses9,27511,447
------------ ------------
Loss from operations(5,883)(8,596)
------------ ------------
Other income (expense):
Interest income376264
Interest and finance expense--(1)
Loss on asset disposition(54)--
Unrealized gain on derivative revaluation--625
------------ ------------
Total other income322888
------------ ------------
Net loss$(5,561) $(7,708)
============ ============
Net loss per share of common stock - basic
and diluted$(0.18) $(0.31)
============ ============
Average weighted number of common shares
outstanding30,326,05025,149,428
============ ============
SOURCE: American Technology Corporation
American Technology Corporation
Investor Relations:
Robert Putnam, 858-676-0519
robert@atcsd.com |
