LRAD Corporation Reports Fiscal Q1 2011 Revenues
Record Quarterly Revenues Expected in Fiscal Q2 2011
SAN DIEGO, CA, Feb 02, 2011 (MARKETWIRE via COMTEX) -- LRAD Corporation (LRAD),
the world leader in acoustic hailing devices (AHDs), today reported fiscal Q1
2011 revenues of $2.2 million and back orders of $12.8 million as of December 31,
2010.
"Although fiscal Q1 revenues were lower than expected, we're scheduled to deliver
the $12.8 million in back orders plus additional LRAD(R) orders this quarter,"
remarked Tom Brown, president and chief executive officer of LRAD Corporation.
"We anticipate that our trend of record fiscal year revenues will remain intact
in 2011 while our quarterly revenues will remain uneven as we build diverse
markets for our proprietary Long Range Acoustic Device(R) systems."
Revenues for fiscal Q1 2011 decreased 58% from $5.2 million recorded in fiscal Q1
2010. The decrease in revenues was primarily attributable to the timing of LRAD
shipments between the first and second quarters of fiscal 2011.
Gross profit for fiscal Q1 2011 was $1.0 million, or 45% of revenues, compared to
$3.0 million, or 58% of revenues, for the quarter ended December 31, 2010. The
decrease in gross profit was primarily due to decreased revenue in the quarter
and lower product margins due to mix, partially offset by higher fixed absorption
due to the increased production levels to fulfill back orders.
Operating expenses for fiscal Q1 2011 decreased by $251,000, or 15%, to $1.4
million, compared to $1.7 million for the same period in the prior year. The
decrease was primarily attributed to $205,000 in lower sales commission, $105,000
in lower business development costs, $70,000 of favorable bonus expense based on
not meeting estimated targets for the quarter, and $21,000 in favorable non-cash
share-based compensation expense, partially offset by $96,000 in salary increases
primarily for business development staff and a $77,000 increase in bad debt.
Net loss for fiscal Q1 2011 was $355,000 or $(0.01) per share, compared to net
income of $1.8 million or $0.06 per diluted share for the same period last year.
The net loss for fiscal Q1 2011 includes net income of $82,000 from discontinued
operations, compared to a net loss in the prior year of $33,000. The decrease in
net income primarily resulted from lower revenues in the quarter and the
reduction of the unrealized gain on derivative revaluation related to warrants of
$597,000 recorded in the prior year, partially offset by lower operating
expenses.
Cash and cash equivalents as of December 31, 2010 decreased $1.8 million to $3.6
million, compared to the balance as of September 30, 2010, due to the
reclassification of $3.0 million during the current quarter from cash and cash
equivalents to restricted cash for amounts pledged to secure bank guarantees
related to a customer sales contract. The Company anticipates $2.4 million of the
restricted cash will be released and return to cash and cash equivalents this
calendar year with the remaining $600,000 being released in calendar year 2012.
"While we grow our business, we continue to manage the balance sheet and control
operating expenses," concluded Brown. "We look forward to discussing our fiscal
Q1 2011 results in tomorrow's conference call."
About LRAD Corporation LRAD Corporation's Long Range Acoustic Device(R) (LRAD(R))
directional communication systems are being used around the world in diverse
applications including fixed and mobile military deployments, maritime security,
critical infrastructure and perimeter security, commercial security, border and
port security, law enforcement and emergency responder communications, and
wildlife preservation and control. For more information about LRAD Corporation
and its long-range directional sound systems, please visit the company's web site
at lradx.com.
Forward-looking Statements: Except for historical information contained herein,
the matters discussed are forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934. 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 fiscal year ended September 30, 2010. LRAD
Corporation disclaims any intent or obligation to update those forward-looking
statements, except as otherwise specifically stated.
LRAD Corporation and Subsidiary
Consolidated Balance Sheets
(000's omitted)
December 31,
2010September 30,
(Unaudited)2010
----------------------------
ASSETS
Current assets:
Cash and cash equivalents$3,608$5,421
Restricted cash2,425-
Accounts receivable, net1,9274,188
Inventories, net5,7912,784
Prepaid expenses and other216205
Current assets of discontinued operations72113
----------------------------
Total current assets14,03912,711
Restricted cash606-
Equipment, net91124
Patents, net268278
Deposits5858
----------------------------
Total assets$15,062$13,171
============================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$2,233$965
Accrued liabilities2,6071,815
Current liabilities of discontinued
operations3253
----------------------------
Total current liabilities4,8722,833
----------------------------
Total stockholders' equity10,19010,338
----------------------------
Total liabilities and stockholders' equity$15,062$13,171
============================
LRAD Corporation and Subsidiary
Consolidated Statements of Operations
(000's omitted except share and per share amounts)
(Unaudited)
Three months ended
December 31,
----------------------------
20102009
--------------------------
Revenues$2,205$5,250
Cost of revenues1,2132,225
--------------------------
Gross profit9923,025
--------------------------
Operating expenses:
Selling, general and administrative1,0541,170
Research and development379514
--------------------------
Total operating expenses1,4331,684
--------------------------
Income from operations(441)1,341
Other income4596
--------------------------
Income (loss) from continuing operations
before income taxes(437)1,937
Provision for income taxes-(85)
--------------------------
Income (loss) from continuing operations(437)1,852
Loss from discontinued operations, net of
taxes82(33)
--------------------------
Net income (loss)$(355) $1,819
==========================
Net income per common share - basic and
diluted:
Continuing operations$(0.01) $0.06
Discontinued operations$-$-
--------------------------
Total net income (loss) per common share -
basic and diluted$(0.01) $0.06
==========================
Weighted average common shares outstanding:
Basic30,633,10930,552,498
==========================
Diluted30,633,10931,130,400
========================== |
