Mr. Mark, I've been out of town, hope your dilemma did not create a problem for you. Ran across this piece this am, does anyone have a comment as to how this may play with creaf?
SRS Labs Posts Record Revenues and Earnings For 1997 Year
Audio Technologies From SRS Labs Now Shipping in All Top Ten Computer Brands
SANTA ANA, Calif., Feb. 17 /PRNewswire/ -- SRS Labs, Inc.
(Nasdaq: SRSL) today reported record results for the fourth quarter and year
ended December 31, 1997. For the year ended December 31, 1997, the Company
posted an 87.0% increase in total revenues, to $10,081,283 and a 102.8%
increase in net income, to $3,773,218 or $0.35 per share on 10,852,281 diluted
shares. For the prior year ended December 31, 1996, SRS Labs recorded total
revenues of $5,392,280 and net income of $1,861,009, or $0.21 per share on
8,686,408 diluted shares.
For the fourth quarter ended December 31, 1997, total revenues increased
76.4%, to $3,247,728 from $1,841,556 in the comparable year-earlier period,
and net income increased 59.1%, to $1,147,513 or $0.11 per share on 10,654,982
diluted shares compared to net income of $721,152, or $0.07 per share on
10,973,030 diluted shares recorded for the same period in the prior year.
Thomas C.K. Yuen, Chairman and CEO, commented: "The 1997 year brought SRS
Labs to new benchmarks -- one of SRS Labs' audio technologies is now included
in select models of PCs shipped by all of the Top Ten computer manufacturers
in the world. SRS Labs' TruSurround(TM) became the first virtual audio
technology to ship in the computer market, in Compaq, Gateway 2000 and Micron
PCs.
"In total, SRS technology had been shipped in 23 million products
worldwide by the end of 1997, more than doubling the 10 million-product
milestone reached in 1996. Much of this growth is a reflection of our chip
strategy, which is to offer more SRS and TruSurround technology chip solutions
to the leading consumer product manufacturers, via our numerous chip partners.
Consequently, our chip partners then lead us to new customers. In the third
and fourth quarters, SRS Labs added 50 new customers through its chip
partners.
Mr. Yuen continued: "Also in the fourth quarter, SRS Labs' customers
began shipping products within China, which was one of the stated objectives
of our expansion into international high growth markets. In total, we
approved seventeen new products with SRS technology for shipment within the
domestic China market. Overall, 1997 saw SRS Labs reach record levels; we
expect to continue on this positive track by executing our growth strategies
in terms of technology development and acquisitions, market penetration and
geographic expansion."
In a review of the fourth quarter, Stephen Sedmak, President, noted:
"During the quarter, we were pleased to announce that SRS 3D Sound technology
is shipping in car audio products from Kenwood, Mitsubishi and Pioneer. Then,
in January, NuReality, a leading manufacturer of 3D audio processors,
introduced its VFX 4200, the first car audio product to include SRS Labs'
FOCUS technology. When combined with SRS 3D Sound, FOCUS creates a completely
immersive sound stage in a car from only the front left and right speakers."
Mr. Sedmak continued: "With the launch of SMART Devices, Inc.'s MOD VI
6-Channel Processor with SRS 3D Sound in October, the total number of theaters
worldwide featuring SRS 3D Sound-enhanced products increased to more than
1,500. In the cable set-top box industry, General Instrument Corporation
became the first manufacturer to sign a license agreement for both the core
SRS 3D Sound technology as well as our new virtual audio technology,
TruSurround. The General Instrument products are expected to be introduced in
late 1998.
"Some bellwether announcements for SRS Labs in the PC world included the
choice of the Mpact(TM) media processor with SRS Labs' TruSurround technology
for Compaq Computer Corporation's new PC Theatre 9100 product. In addition,
Cirrus Logic Inc. announced that its CrystalClear(TM) audio chip solution,
which provides SRS 3D Sound enhancement, has been designed into the high-end
IBM ThinkPad 770 notebook computer. CrystalClear was also chosen for the Dell
Latitude CP portable PC.
"In 1997," Mr. Sedmak disclosed, "SRS Labs bolstered its patent portfolio
with the award of both U.S. and foreign patents relating to the core SRS
technology. Also in 1997, we initiated global patent protection relating to
SRS enhancements and other SRS Labs technologies. And, in the first quarter
of 1998, SRS Labs acquired all the rights associated with VIP(TM) technology.
VIP is a powerful, patented voice technology that significantly improves the
intelligibility of the human voice in a variety of listening situations,
especially in high ambient noise environments. This acquisition opened up new
opportunities for SRS Labs in several areas, including the fast-growing
telecommunications, wireless and voice processing markets."
SRS Labs is the leading developer and licenser of premium audio
enhancement technology to consumer electronics and computer OEMs worldwide.
SRS Labs has partnered with leading semiconductor manufacturers, such as AKM
Semiconductor, Chromatic Research, Cirrus Logic, LSI Logic, Medianix,
Mitsubishi Semiconductor, New Japan Radio, Philips, S3, SGS Thomson, Toshiba
Semiconductor and Zoran, to offer a variety of digital and analog chip
solutions of its core SRS 3D Sound technology as well as TruSurround, its
latest virtual audio technology.
Audio technologies from SRS Labs have shipped in more than 23 million
products worldwide, including televisions, home audio receivers, DVD players,
movie theater processors, mini-sound systems, car CD players, computers and
home digital pianos from more than 170 leading manufacturers, including AST,
Acer, Apple, Compaq, Dell, Gateway 2000, Hitachi, IBM, Kawai, Kenwood,
Kurzweil, Micron, Mitsubishi, Nakamichi, Packard Bell, Pioneer, RCA, Samsung,
Sanyo, Sharp, Sony and Toshiba.
For further information on SRS Labs or to download SRS processed sound
files, please visit the SRS Labs website at srslabs.com.
Except for historical information contained herein, the matters set forth
in this press release, such as the statements of Mr. Yuen in paragraphs five
and of Mr. Sedmak in seven and nine of this release include forward-looking
statements and projections (including statements concerning plans and
objectives of management for future operations) 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 the Company's financial goals
will be realized. Numerous factors may affect the Company's actual results
and may cause results to differ materially from those expressed in forward-
looking statements made by or on behalf of the Company. Some of these factors
include the ability of the Company to execute its growth strategies through
development and/or acquisition of new technologies, the successful
introduction of the General Instrument products containing SRS technologies in
late 1998, and the ability of the Company to obtain entry and sales in the
telecommunications, wireless and voice processing industries with VIP
technology. Such forward-looking statements that are subject to risks and
uncertainties include the acceptance of new products and technologies, the
impact of competitive products and pricing, the timely development and release
of products by suppliers and licensees of the Company, general business and
economic conditions, and other risks detailed in the Company's Form 10K and
Form 10Q statements filed with the SEC.
SRS LABS, INC.
STATEMENTS OF INCOME
(UNAUDITED)
Three Months Ended Year Ended
December 31, December 31,
1997 1996 1997 1996
REVENUES
Royalty revenues $2,922,728 $1,594,556 $8,671,283 $4,620,100
Other revenues 325,000 247,000 1,410,000 772,180
Total revenues 3,247,728 1,841,556 10,081,283 5,392,280
COST OF SALES 24,108 42,491 210,348 95,378
GROSS MARGIN 3,223,620 1,799,065 9,870,935 5,296,902
SALES AND MARKETING 921,661 442,694 2,111,839 1,163,409
RESEARCH AND DEVELOPMENT 181,173 176,253 595,689 521,482
GENERAL AND ADMINSTRATIVE773,434 522,248 2,615,706 1,615,648
INCOME FROM OPERATIONS 1,347,352 657,870 4,547,701 1,996,363
INTEREST INCOME, net 282,005 248,765 1,088,717 365,583
INCOME BEFORE PROVISION
FOR INCOME TAXES 1,629,357 906,635 5,636,418 2,361,946
PROVISION FOR INCOME TAXES481,844 185,483 1,863,200 500,937
NET INCOME $1,147,513 $721,152 $3,773,218 $1,861,009
NET INCOME PER COMMON SHARE$0.12 $0.08 $0.39 $0.24
NET INCOME PER COMMON SHARE
ASSUMING DILUTION $0.11 $0.07 $0.35 $0.21
COMMON SHARES USED IN THE
CALCULATION OF NET INCOME
PER COMMON SHARE 9,597,200 9,468,548 9,556,015 7,625,080
COMMON SHARES USED IN THE
CALCULATION OF NET INC0ME
PER COMMON SHARE ASSUMING
DILUTION 10,654,982 10,973,030 10,852,281 8,686,408
SOURCE SRS Labs, Inc.
CO: SRS Labs, Inc.
ST: California
IN: CPR
SU: ERN
02/17/98 06:04 EST prnewswire.com
Dave |
