Noise Cancellation Technologies Reports First Quarter Results and
Anticipates Breakeven or Profitable Second Quarter
Business Wire - May 14, 1998 11:50
%NOISE-CANCELLATION-TECH NCTI %MARYLAND %COMPUTERS %ELECTRONICS %COMED %TELECOMMUNICATIONS
%EARNINGS V%BW P%BW
LINTHICUM, Md.--(BUSINESS WIRE)--May 14, 1998--Noise Cancellation Technologies, Inc. (NASDAQ: NCTI)
reported that total revenue for the first quarter of 1998 was $0.7 million compared to $3.3 million in the first quarter of 1997
which included a $3.0 million cross license fee from the Verity Group, plc. First quarter 1998 product sales increased 100% to
$0.4 million compared to $0.2 million in the first quarter 1997.
Technology license fees and royalties were $0.3 million in the first quarter 1998 and for the first time include royalties for
aircraft cabin quieting systems from Ultra Electronics, Ltd. and for integrated noise cancellation passenger headset systems from
suppliers to United Airlines.
The Company reported a net loss of $3.6 million for the first quarter of 1998, compared to a net income of $0.6 million for the
same period a year ago. First quarter 1998 expenses included substantial sales and marketing expenditures related to the
launch of new products in 1998, including the introduction of the Gekko(tm) flat speakers, NoiseBuster(r) communications
headsets and ClearSpeech(tm) products. Based on realized gains from the sale of Verity stock, product sales and royalties, the
Company anticipates a breakeven or profitable second quarter.
NCTI is a leading technology developer with an extensive portfolio of proprietary algorithms and a wide variety of product
offerings for consumer, commercial and industrial applications. The Company specializes in the utilization of sound and signal
waves to reduce noise, improve signal-to-noise ratio and enhance sound quality. For more information, refer to the Company's
World Wide Web site at nct-active.com.
Cautionary Statement Regarding Forward-Looking Statements
Certain statements contained in this press release are forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995 (the "Act"). In order to obtain the benefits of the "safe harbor" provisions of the Act for any such
forward-looking statements, the Company wishes to caution investors and prospective investors about significant factors, which
among others, have in some cases affected the Company's actual results and are in the future likely to affect the Company's
actual results and cause them to differ materially from those expressed in any such forward-looking statements. Investors and
prospective investors should read this press release in conjunction with the Company's reports on Form 10-K and Forms
10-Q as filed with the Securities and Exchange Commission.
Noise Cancellation Technologies, Inc.
(Unaudited)
For the 3 months ended
March 31,
(In millions, except per share amounts) 1997 1998
Total revenues $ 3.3 $ 0.7
Net income (loss) $ 0.6 $ (3.6)
Net income (loss) per share $ 0.01 $(0.04)
Weighted average number of
common shares outstanding 112.0 133.2
CONTACT: Noise Cancellation Technologies, Inc.
Joanna Lipper/Cy Hammond
(203) 961-0500/(410) 636-8700
(203) 348-4106/(410) 636-2141 (fax)
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