I'm not sure what the street expected for them, but from the looks of it this has to be a positive for LHSPF:
Thursday January 15, 4:43 pm Eastern Time
Company Press Release
SOURCE: Andrea Electronics Corporation
Andrea Electronics Corp. Reports Preliminary Results for Year End 1997
LONG ISLAND CITY, N.Y., Jan. 15 /PRNewswire/ -- Andrea Electronics Corporation (Amex: AND - news) announced
today that based on preliminary results, the Company expects to report revenues for the year ended December 31, 1997, in
excess of $26 million, compared with revenues for the year ended December 31, 1996 of approximately $9.2 million. The
Company anticipates that net income per share for 1997 will be within the range of approximately $0.35 per share to $0.40 per
share on a diluted basis.* This compares with a net loss of $0.05 per share for the 1996 period. Reported earnings for the year
1997 will likely be below analyst estimates primarily due to the timing of anticipated retail orders, which Andrea Electronics
expected to book during the fourth quarter 1997. However, due to the disparate characteristics of the direct retail industry, the
Company anticipates these retail orders to be realized during the first half of 1998. The estimated results in this press release are
preliminary and unaudited. Final results will be announced on January 27, 1998.
Commenting on the preliminary results, John N. Andrea, Co-president of Andrea Electronics Corporation, stated, ''I am proud
to say that 1997 was a very strong year for Andrea Electronics. Toward our ultimate goal of having patented Active Noise
Cancellation (ANC) microphone and Active Noise Reduction (ANR) earphone technologies, recognized as the global audio
standards, we implemented each of the key facets of our long-term growth strategy, and we are excited about reporting what
we believe will be positive results for 1997. Among other things, we introduced new products and technologies to meet market
needs and established and strengthened strategic partnerships with industry leaders. We signed key licensing and procurement
agreements and we devoted considerable attention to expanding our channels of distribution.''
Andrea Electronics' growth is substantially due to the Company's ability to work closely with customers and end-users in order
to identify market trends, constantly improve technology and create products to meet the needs of high-growth markets. During
1997, speech recognition, Internet and Network communications programs realized significant market acceptance, and during
the year, three of the primary speech recognition software publishers -- IBM Corporation (NYSE: IBM - news), Lernout &
Hauspie Speech Products (Nasdaq: LHSPF - news) and Dragon Systems -- chose Andrea Anti-Noise(R) products to be sold
with their speech recognition software. Andrea Anti-Noise products were also endorsed and recommended by Microsoft
(Nasdaq: MSFT - news) for use with its browser, Internet Explorer(R) 4.0, and NetMeeting(TM) 2.0, its premier
videoconferencing software.
Building on its platform of strategic alliances, in 1997, Andrea Electronics combined its application-tailored headsets with
various software in four new retail packages.
''Our initial shipments of products during the fourth quarter 1997 to CompUSA stores sold out faster than we anticipated,'' said
John Andrea. ''The retail market, which we have only begun to penetrate, clearly represents a huge opportunity for Andrea
Electronics to heighten visibility of voice-related computer applications and the Andrea products that enhance them, achieve
greater brand recognition and increase our overall market share. Our penetration of direct retail markets in 1997 proceeded
more slowly than we had originally hoped, and as a result, revenue we had expected in the fourth quarter of 1997 should
instead appear on the books in the first half of 1998. Nevertheless, we are extremely encouraged by our success thus far in the
world of retail, and we are dedicating efforts and capital in 1998 to educating retail buyers not only about our products and the
applications they enhance, but also how these technologies fit into the office/computer superstore concept.''
According to Patrick D. Pilch, Executive Vice President and Chief Financial Officer, one of Andrea Electronics' goals in 1998 is
to broaden its retail distribution to include the nation's top ten computer and office superstores. In addition, the Company
expects to introduce more products targeted to retail audiences to increase shelf space and strengthen brand recognition.
''In focusing on expanding the Company's retail business,'' Patrick Pilch noted, ''we understand that the retail revenue stream,
by nature, is less predictable in terms of timing than that of our other business channels, and as we continue to develop existing
and future relationships in this industry, we believe we will continue to demonstrate the success of our products.''
''Overall, we are extremely encouraged by our current position and future outlook. We are confident that 1998 will prove to be
a very exciting year for Andrea Electronics,'' said John Andrea.
Andrea Electronics Corporation is a developer and manufacturer of audio communications equipment for personal computers,
telecommunications, commercial and military electronics markets. Andrea Electronics Corporation is based in Long Island City,
New York.
This press release contains ''forward-looking statements'' within the meaning of the Private Securities Litigation Reform Act of
1995. Such forward-looking statements involve known and unknown risks, uncertainties or other factors which may cause
actual results, performance or achievements of the Company to be materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements. Factors that might cause such a difference include, but
are not limited to, those discussed under the heading ''Certain Factors That May Affect Future Results'' included in the
Management's Discussion and Analysis of Financial Condition and results of operations in the Company's Annual Report on
Form 10-K and in the Company's 1996 Annual Report to stockholders, and in documents subsequently filed by the Company
with the Securities and Exchange Commission.
* The weighted average number of common equivalent shares outstanding used to calculate diluted earnings per share, reflects
the addition during 1997 of approximately 800,000 shares pursuant to the Company's application of the treasury stock method
as required for the calculation of diluted earnings per share by Statement of Financial Accounting Standards #128. |
