Parametric Sound Announces Third Quarter Results
SAN DIEGO, CA, Aug 09, 2012 (MARKETWIRE via COMTEX) -- Parametric Sound
Corporation (PAMT), a leading innovator of audio products and solutions, today
announced financial results for its third fiscal 2012 quarter ended June 30,
2012.
During the third fiscal quarter of 2012, the Company launched its licensing
strategy to commercialize HyperSound(TM) directed audio IP across a wide range of
consumer products. The Company believes it has made important progress executing
its licensing strategy. Recent highlights:
--Continued success in achieving positive visibility at targeted
licensing partners.
--Signing its first licensing agreement, which was with Epsilon
Electronics.
--Expanding and strengthening the Company's domestic and international
patent portfolio.
--Growing the business development and engineering teams to support
licensing efforts.
--Completing a public offering in March and April, providing net
proceeds of $8.0 million.
"During this past quarter, we made significant progress in building the
infrastructure we believe is required to aggressively pursue opportunities," said
Kenneth F. Potashner, executive chairman. "The demonstrable appeal of HyperSound
has allowed us to quickly generate interest from global consumer electronics
companies. Completing our first licensing agreement marks a significant milestone
and we are encouraged by the early response from other industry leaders."
Q3 2012 Financial Summary:
Product revenues were $34,392 for the third quarter ended June 30, 2012, and
$158,867 for the nine months ended June 30, 2012. There were no comparable
revenues in the prior periods as the Company's new digital signage products were
under development at that time. The Company is working with customers to
customize digital signage solutions, install and test pilot sites targeting
larger unit orders from end users and their integrators.
Gross profit margin was $15,863, or 46 percent of revenue, for the third quarter
ended June 30, 2012, and was $88,271, or 56 percent of revenue, for the nine
months ended June 30, 2012. Margin for the nine months was positively impacted
from usage of parts valued at $9,915 that had inventory obsolescence and excess
parts allowances recorded in prior years.
Selling, general and administrative expenses for the three months ended June 30,
2012 were $1,325,857, including non-cash share-based compensation expenses of
$777,434. This compares to $146,867, including $24,682 of non-cash share-based
compensation expenses, during the comparable prior-year period ended June 30,
2011. Selling, general and administrative expenses for the nine months ended June
30, 2012 were $2,390,455, including non-cash share-based compensation expenses of
$1,214,023. This compares to $424,202, including $67,881 of non-cash share-based
compensation expenses, during the comparable prior year period ended June 30,
2011. Increases in these expenses were driven primarily by the acceleration of
the Company's licensing strategy including increased personnel costs,
professional fees related to licensing activities and increased public company
costs as a result of the secondary offering and a March 2012 Nasdaq listing.
Research and development expenses for the three months ended June 30, 2012 were
$404,413, compared to $182,015 for the comparable period ended June 30, 2011.
These research and development expenses included non-cash share based
compensation expenses of $71,591 and $30,654, respectively. Research and
development expenses for the nine months ended June 30, 2012 were $902,621,
compared to $460,793 for the nine-month period ended June 30, 2011. These
research and development expenses included non-cash share-based compensation
expenses of $194,853 and $77,770 for the three and nine-month periods ended June
30, 2012, respectively. Increased research and development expenses resulted
primarily from increase staffing and prototype and testing costs.
The net loss for the three months ended June 30, 2012, and 2011 was $1,707,488
(($0.27) per basic and diluted common share) and $484,768 (($0.14) per basic and
diluted common share), respectively. The most recent period loss included
$849,025 of non-cash share-based compensation expenses compared to $55,336 for
the prior year's third quarter. The net loss for the nine months ended June 30,
2012 and 2011 was $3,199,802 (($0.66) per basic and diluted common share) and
$1,186,021 (($0.37) per basic and diluted common share), respectively. The most
recent nine-month period loss included $1,408,876 of non-cash share-based
compensation expenses compared to $145,651 for the prior year's first nine
months.
At June 30, 2012 the Company reported cash of $6.5 million compared to $0.5
million at September 30, 2011. The Company had working capital of $6.7 million
and no long-term debt at June 30, 2012.
The Company said that it plans to regularly hold earnings conference calls to
review financial results commencing when it reports its fiscal fourth quarter
results.
About Parametric Sound Corporation Parametric Sound Corporation is a pioneering
innovator of directed audio solutions. With a substantial body of intellectual
property, Parametric Sound is the foremost authority in the application of
acoustic technology to beam sound to target a specific listening area without the
ambient noise of traditional speakers. The Company is targeting its technology
for new uses in consumer markets including computers, video gaming, televisions,
home audio, health care and mobile devices. For more information, 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 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 the Company believes that its expectations are based upon
reasonable assumptions, there can be no assurances that its goals and strategy
will be realized. Numerous factors, including risks and uncertainties, may affect
actual results and may cause results to differ materially from those expressed in
forward-looking statements made by the Company or on its 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 the Company's Annual Report on Form 10-K and other
periodic reports filed with the SEC. Except as required by law, the Company
specifically disclaims any obligation to update or revise any forward-looking
statement whether as a result of new information, future developments or
otherwise.
Parametric Sound Corporation
Condensed Balance Sheets
(000's omitted except per share amount)
(unaudited)
June 30,September 30,
20122011
$$
ASSETS
Current
Cash6,455492
Inventories, net459273
Prepaid expenses and other current assets8365
------------- -------------
Total current assets6,997830
Property, equipment and tooling, net162145
Intangible assets, net1,327149
------------- -------------
Total assets8,4861,124
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable178164
Accrued liabilities9815
Deferred officer compensation-224
------------- -------------
Total current liabilities276403
Stockholders' equity8,210721
------------- -------------
Total liabilities and stockholders' equity8,4861,124
============= =============
Parametric Sound Corporation
Condensed Statements of Operations
(000's omitted except per share amount)
(unaudited)
For the three monthsFor the nine months
ended June 30,ended June 30,
2012201120122011
$$$$
Revenues3421592
Cost of revenues19-71-
----------------------------------------
Gross profit152882
Operating expenses: (i)
Selling, general and
administrative1,3261472,390424
Research and development404182903461
----------------------------------------
Total operating expenses1,7303293,293885
----------------------------------------
Loss from operations(1,715)(327)(3,205)(883)
Other income (expenses)7(158)5(303)
----------------------------------------
Net loss(1,708)(485)(3,200)(1,186)
========================================
Loss per basic and diluted
common share(0.27)(0.14)(0.66)(0.37)
========================================
Weighted average shares used
to compute net loss per
basic and diluted common
share6,3293,4614,8723,249
========================================
(i) includes share-based compensation
expense as follows:
For the three monthsFor the nine months
ended June 30,ended June 30,
2012201120122011
Selling, general and
administrative777251,21468
Research and development723119578
----------------------------------------
Total share-based
compensation expense849561,409146
========================================
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