Parametric Sound Reports First Quarter 2012 Results
HENDERSON, NV, Jan 26, 2012 (MARKETWIRE via COMTEX) -- Parametric Sound
Corporation (PAMT), a leading innovator of audio products and solutions, today
announced financial results for its first fiscal 2012 quarter ended December 31,
2011.
Q1 2012 Highlights:
--Upgraded HyperSound(TM) technology through introduction of new DSP
and software enhancements resulting in dramatically improved sound
quality whereupon we believe our distortion is comparable or less than
many traditional speakers.
--Appointed Kenneth F. Potashner to the board of directors. Mr.
Potashner, an experienced technology executive, has also commenced a
consultancy arrangement to develop strategies for a range of markets
now possible with our latest HyperSound audio innovations. He has
agreed in principle to thereafter manage company growth by becoming
Executive Chairman at a future date expected to be before March 15,
2012.
--Continued to sell HSS-3000 product line while preparing customers for
Version 2 product upgrade. HSS-3000 V2 products began shipping in
January 2012.
--Acquired all technology and intellectual property covered by a License
and Royalty Agreement with related party Syzygy Licensing LLC. This
terminates all future royalty obligations and assigned to us all
related pending patent applications. We now own 100% of our technology
without royalty obligations and control future licensing.
--Strengthened and expanded IP portfolio and in January filed a new
patent application incorporating recent innovations.
Management Commentary: "Product upgrades developed in Q1 served as the foundation
for January 2012 product announcements and our showcasing at CES of significantly
improved HSS-3000 products," said Elwood G. Norris, President and CEO of
Parametric Sound. "These improvements enhance our prospects to deliver licensable
technology in new targeted consumer markets including computers, video gaming,
televisions, home audio and mobile devices."
"Our upgraded HyperSound technology produces a crisp, clean and robust sound
image enhancing stereo output to produce an enhanced 3D sound image from just two
thin emitters. The enhanced audio we produce results in a distinct sound
experience unattainable from traditional audio. It creates immersive 3D sound
enjoyment not possible from surround systems, 5.1, 7.1 or virtual, or from
headphones or electronic processing. A simple HyperSound 2.1 system, two thin
emitters or speakers and a small subwoofer, offers a novel audio solution for a
range of consumer applications."
"The addition of Ken Potashner to our Board and as a strategic consultant adds
important executive and management experience to pursue the breadth of markets
that can be captured with our new audio technology. He is already making
important contributions as we prepare to rapidly expand market applications for
our audio solutions. And we are very pleased that he has agreed in principle to
manage our future growth by becoming Executive Chairman at a future date expected
to be before March 15, 2012."
"We are pleased by the response to the sound quality of our HSS-3000 V2 products
from customers in North America, Europe and Asia. We commenced limited shipments
in January and have already booked our first volume V2 order. Q1 sales were
affected by the planned product upgrade. We expect revenues to grow with the
introduction of V2 and we are pursuing volume orders worldwide. We are delivering
on our promise to provide economical, high quality directed audio solutions. And
we are pursuing new consumer markets for our novel audio solution."
"We continue to innovate and add to our IP portfolio. For commercial customers
including digital signage, kiosks, POS terminals and slot machines, we are
developing new form factors for our emitters to better meet their audio solution
needs."
Q1 2012 Financial Summary: In the first quarter revenues were slowed as customers
awaited the V2 upgrade released in January. Revenues were $64,781 for the quarter
and there were no comparable revenues during Q1 of the prior year as our HSS-3000
products were under development at that time.
Gross profit margin was 62% and was positively impacted from usage of parts that
had inventory obsolescence and allowances recorded in prior periods and included
a 5% royalty that will not be incurred in future periods due to the technology
assignment completed on December 29, 2011.
Selling, general and administrative expenses for Q1 ended December 31, 2011 were
$338,959, compared to $129,344 during comparable Q1 ended December 31, 2010. The
increase included a $133,000 increase in non-cash share based compensation
expense and a $48,000 increase in professional fees due to increased legal,
auditing, meeting and filing costs.
Research and development expenses for Q1 were $230,705, compared to $126,397 for
Q1 of the prior year. The increase included a $25,000 increase in non-cash share
based compensation expense and a $45,000 increase in prototype related costs due
to work on technology upgrades and new emitter development.
The net loss for Q1 was $531,017, $(0.03) per share, compared to $325,940,
$(0.02) per share, during Q1 of the prior year. The Q1 2012 loss included
$196,000 of non-cash share based compensation expenses.
About Parametric Sound Corporation Parametric Sound Corporation's pioneering
HyperSound technology employs a tightly focused beam of sound to target specific
audiences without the ambient noise of traditional speakers. The Company owns a
substantial body of intellectual property. Recent innovations enhance stereo
output to produce a robust 3D audio image from just two ultra-thin speakers
opening opportunities for consumer markets. For more information about the
Company and its products, please visit: parametricsound.com.
Cautionary note on forward-looking statements This press release includes
forward-looking information and statements. Except for historical information
contained in this release, statements in this release may constitute
forward-looking statements regarding our assumptions, projections, expectations,
targets, intentions or beliefs about future events that are based on management's
belief, as well as assumptions made by, and information currently available to,
management. While we believe that our expectations are based upon reasonable
assumptions, there can be no assurances that our goals and strategy will be
realized. Numerous factors, including risks and uncertainties, may affect our
actual results and may cause results to differ materially from those expressed in
forward-looking statements made by us or on our behalf. Some of these factors
include the acceptance of existing and future products, the impact of competitive
products and pricing, general business and economic conditions, and other factors
detailed in our Annual Report on Form 10-K and other periodic reports filed with
the SEC. We specifically disclaim any obligation to update or revise any
forward-looking statement whether as a result of new information, future
developments or otherwise.
CONTACT:
Jim Barnes
CFO
888-HSS-2150 Ext 3 |
