LRAD Corporation Announces Fiscal Q3 2011 Results
Company Reports Record Revenues and Profitable Results for First Nine Months of
FY 2011
SAN DIEGO, CA, Aug 09, 2011 (MARKETWIRE via COMTEX) -- LRAD Corporation (LRAD),
the world's leading provider of acoustic hailing devices (AHDs), today announced
revenues of $2.4 million and a net loss of $684,000, or $0.02 per share, for the
quarter ended June 30, 2011. The Company reported record revenues of $20.1
million and net income of $4.7 million, or $0.15 per diluted share, for the nine
months ended June 30, 2011.
"Our fiscal Q3 2011 results reflect reduced military funding caused by the
ongoing U.S. government budget uncertainty as domestic military sales were down
73% as compared to fiscal Q3 2010," commented Tom Brown, president and chief
executive officer of LRAD Corporation. "However, we expect U.S. Military business
to pick up this quarter as our LRAD(R) systems are aligned with current military
initiatives to procure COTS (commercially available off-the-shelf) products that
have passed stringent testing and meet MIL-SPEC standards. LRAD provides military
personnel highly intelligible, long range voice communication to resolve
uncertain situations peacefully and potentially save lives on both sides of the
Long Range Acoustic Device(R)."
Revenues for fiscal Q3 2011 decreased 19% to $2.4 million from $2.9 million
recorded in fiscal Q3 2010. The decrease was primarily attributable to a
reduction in orders from the U.S. Military.
Gross profit for fiscal Q3 2011 was $905,000, or 38% of revenues, compared to
$1.5 million, or 50% of revenues, for the quarter ended June 30, 2010. The
decrease was due to reduced revenue resulting in lower fixed overhead absorption
and increased cost related to the amortization of prepaid expenses to support the
large foreign military sale in the quarter ended March 31, 2011.
Operating expenses for fiscal Q3 2011 increased 12% to $1.6 million, compared to
$1.4 million for the same period in the prior year. The increase was primarily
attributed to increases of $86,000 for staffing, primarily for business
development personnel, $67,000 for bonus expense based on the Company's
expectations of meeting annual performance targets, $41,000 for international
travel, $28,000 for certification testing, and $11,000 for other net increases,
offset by $32,000 in bad debt recovery for collecting on previously reserved
receivables and $20,000 in lower patent impairment costs.
Net loss for fiscal Q3 2011 was $684,000, or $0.02 per share, compared to net
income of $68,000, or $0.00 per share, for the same period last year. The
decrease was primarily the result of lower revenue and gross margin in the
quarter, increased operating expenses, and the reduction of the unrealized gain
on derivative revaluation related to warrant instruments recognized in the
quarter ended June 30, 2010 that was not recognized in the quarter ended June 30,
2011.
For the nine months ended June 30, 2011, revenues increased 75% to $20.1 million
compared to $11.5 million for the nine months ended June 30, 2010. For the first
nine months of fiscal 2011, gross profit was $12.8 million, or 64% of revenues,
compared to $6.3 million, or 55% of revenues, for the same period a year ago. The
increase was primarily due to increased year to date revenue, lower product cost
due to volume pricing, and higher fixed absorption due to the increased
production levels during the first two quarters to fulfill the large foreign
military order in the quarter ended March 31, 2011.
Operating expenses for the nine months ended June 30, 2011 were $8.1 million, an
increase of $3.3 million from the same period a year ago. The increase was
primarily attributed to increases of $2.7 million in sales commission primarily
related to the large foreign military sale, $396,000 in bonus expense based on
the Company's expectations of meeting annual performance targets, $291,000 for
consultants, business development and staff, and $16,000 for other net increases,
offset by reductions of $67,000 in product development costs, primarily for
certification and testing, $50,000 for marketing expenses, and $30,000 in
favorable non-cash share-based compensation expense.
Net income for the nine months ended June 30, 2011 was $4.7 million, or $0.15 per
diluted share, compared to $2.1 million, or $0.07 per diluted share, for the same
nine-month period last year. Profitable results during the first nine months of
fiscal 2011 were primarily attributed to increased revenues and gross margins,
partially offset by increased operating expenses and the reduction of the
unrealized gain on derivative revaluation related to warrant instruments. In
addition, the Company recorded an income tax provision of $74,000 during the nine
months ended June 30, 2011, compared to a provision of $107,000 for the same
period a year ago.
Cash and cash equivalents at June 30, 2011 increased to $13.1 million from $5.4
million at September 30, 2010, primarily due to net income during the nine months
ended June 30, 2011 and $4.3 million from the exercise of warrants. In addition,
at June 30, 2011, the Company had $606,000 in cash pledged to support a bank
guarantee related to a customer sales contract that was previously included as
cash and cash equivalents and reclassified as restricted cash in the quarter
ended December 31, 2010.
Brown concluded, "We're on track for a strong finish to our fiscal year and we
look forward to discussing our fiscal Q3 2011 results on today'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. These risks and uncertainties
are 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)
June 30,
2011September 30,
(Unaudited)2010
--------------------------
ASSETS
Current assets:
Cash and cash equivalents$13,062$5,421
Accounts receivable, net2,2174,188
Inventories, net3,6842,784
Prepaid expenses and other736205
Assets of discontinued operations48113
--------------------------
Total current assets19,74712,711
Restricted cash606-
Equipment, net75124
Patents, net234278
Prepaid expenses - noncurrent1,32458
--------------------------
Total assets$21,986$13,171
==========================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$467$965
Accrued liabilities1,4461,533
Liabilities of discontinued operations2053
--------------------------
Total current liabilities1,9332,551
Other liabilities - noncurrent278282
--------------------------
Total liabilities2,2112,833
--------------------------
Total stockholders' equity19,77510,338
--------------------------
Total liabilities and stockholders' equity$21,986$13,171
==========================
LRAD Corporation and Subsidiary
Consolidated Statements of Operations
(000's omitted except share and per share amounts)
(Unaudited)
Three months endedNine months ended
June 30,June 30,
------------------------------------------------
2011201020112010
--------------------------------------------
Revenues$2,382$2,930$20,090$11,483
Cost of revenues1,4771,4577,3255,158
--------------------------------------------
Gross profit9051,47312,7656,325
--------------------------------------------
Operating expenses:
Selling, general and
administrative1,1199916,5633,417
Research and
development5144611,5591,449
--------------------------------------------
Total operating expenses1,6331,4528,1224,866
--------------------------------------------
Income from operations(728)214,6431,459
Other income47413746
--------------------------------------------
Income from continuing
operations before
income taxes(724)954,6562,205
Provision for income
taxes38(11)(74)(107)
--------------------------------------------
Income from continuing
operations(686)844,5822,098
Income (loss) from
discontinued
operations, net of
taxes2(16)83(47)
--------------------------------------------
Net (loss) income$(684) $68$4,665$2,051
============================================
Net income (loss) per
common share - basic
and diluted:
Continuing operations $(0.02) $0.00$0.15$0.07
Discontinued
operations$0.00$(0.00) $0.00$(0.00)
--------------------------------------------
Total net income (loss)
per common share -
basic and diluted$(0.02) $0.00$0.15$0.07
============================================
Weighted average common
shares outstanding:
Basic32,335,84630,611,45630,616,66030,581,706
============================================
Diluted32,335,84631,104,86431,560,45631,136,608
============================================ |
