American Technology Reports Fiscal Q2 2008 Results
Launch of New LRAD(R)-X Products Expected to Increase Q3 and Q4 Revenues and
Improve Operating Results
SAN DIEGO, CA, May 09, 2008 (MARKET WIRE via COMTEX) -- American Technology
Corporation (ATC) (ATCO), a leading provider of directed sound products and
technologies, today announced revenues of $2.0 million and a net loss of $2.1
million, or $(0.07) per share, for the second quarter ended March 31, 2008.
In late March 2008, the Company launched and began shipping its new line of
LRAD-X acoustic hailing and warning devices (AHDs) and accessories, which
represents a significant upgrade in performance and reliability with new
capabilities that the Company expects to appeal to a wider range of customers.
The new LRAD-X product line includes:
--LRAD 1000X - a long distance hailing and warning device featuring
highly intelligible, directional communication at distances of over 500
meters that is being used by the U.S. Navy on their Shipboard Protection
System.
--LRAD 500X - a lightweight, transportable communication, hailing and
warning product that is being used by the U.S. Navy and U.S. Army on small
vessels and vehicles.
--LRAD 100X - an integrated camera/speaker solution ideally suited for
short-range perimeter security featuring highly intelligible, directional
sound/communication and compatible with traditional camera-based security
networks.
--LRAD RX - a remotely operable security solution featuring an LRAD
1000X emitter head, integrated camera, optional high-intensity searchlight,
all driven by ATC's new proprietary, robust, IP-addressable pan and tilt
drive for precise aiming and tracking, that can also be integrated with
radar to provide automated intruder alerts to central command posts.
"The feedback from U.S. military officials and from international customers on
the initial LRAD-X and LRAD RX shipments has been extremely positive," commented
Tom Brown, president and chief executive officer of American Technology
Corporation. "Over the last six months, we invested significant funds and
man-hours upgrading our LRAD product line to enhance our position as the dominant
leader in the growing AHD market. The introduction of our proprietary,
technically advanced pan-and-tilt drive demonstrates our capability to rapidly
respond to the most stringent military specifications and harsh military and
commercial security operating environments."
"As the pioneer and market leader in the emerging and growing AHD market we
intend to continue our record of innovation," added Brown. "We see significant
worldwide growth opportunities in the AHD and related commercial sound markets."
Revenues for fiscal Q2 of $2.0 million were 9% lower than the comparable quarter
of the prior year due to the timing of the launch of the new LRAD(R)-X product
line in late March and lower HSS(R) product shipments. Also, March LRAD shipments
totaling $232,000 were not recorded as revenue in fiscal Q2 due to shipping
terms.
Gross profit for the second fiscal quarter was $731,000 or 36% of revenues
compared to a gross profit of $1.1 million, or 49% of revenues, for the quarter
ended March 31, 2007. The reduction was primarily due to a change in the
Company's warranty estimate in the quarter ended March 31, 2007, which resulted
in a favorable adjustment of $329,000, as well as lower sales associated with the
transition to the LRAD-X product line.
Operating expenses for fiscal Q2 2008 were $2.9 million, an increase of $691,000
from the quarter ended March 31, 2007. This increase was due mainly to increased
research and development on the new LRAD-X product line, including a significant
investment to develop the new pan-and-tilt drive. Fiscal Q2 also reflected a
$329,000 increase in non-cash share-based compensation expenses versus fiscal Q2
of the prior year.
For the six months ended March 31, 2008, the Company reported revenues of $4.6
million, a 26% decrease from $6.2 million for the six months ended March 31,
2007. For the first six months of fiscal 2008, gross profit was $1.9 million, or
41% of revenues, compared to $3.1 million, or 50% of revenues, for the same
period a year ago. Revenues and margins were lower due to the Company's
transition to the LRAD-X product series and product sales mix.
Operating expenses increased to $5.8 million for the six months ended March 31,
2008 from $4.8 million for the same period ended March 31, 2007 due mainly to an
increase of over $900,000 in research and development expenses associated with
the Company's new LRAD-X product line. The operating loss for the six months
ended March 31, 2008 was $3.9 million compared to an operating loss of $1.7
million for the same period a year ago. The increased loss from operations was
attributable to decreased sales, increased research and development expense and
increased share-based compensation expense compared to the prior year. The net
loss for the six months ended March 31, 2008 was $3.9 million, or $(0.13) per
share, compared to a net loss of $1.5 million, or $(0.05) per share, for the six
months ended March 31, 2007.
"Based on increasing LRAD-X product shipments, we expect fiscal Q3 and fiscal Q4
to be much improved over the first two quarters, contributing to higher revenues
and product margins for fiscal year 2008 over 2007," concluded Brown. "We look
forward to discussing important business developments, the fiscal Q2 financial
results, and our outlook for the balance of the year during our May 12th
conference call."
About American Technology Corporation
American Technology Corporation is Shaping the Future of Sound(R) by providing
directed audio solutions that place clear, highly intelligible sound exactly
where needed. ATC's Long Range Acoustic Device (LRAD(R)), HyperSonic(R) Sound,
and NeoPlanar(R) product lines make up the core of an expanding portfolio of
directed sound products and technologies. For more information about ATC and its
directed sound solutions please visit the company's web site at
atcsd.com. 
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995:
Except for historical information contained herein, the matters discussed are
forward-looking statements within the meaning of Section 21E of the Securities
Exchange Act. You should not place undue reliance on these statements. We base
these statements on particular assumptions that we have made in light of our
industry experience, the stage of product and market development as well as our
perception of historical trends, current market conditions, current economic
data, expected future developments and other factors that we believe are
appropriate under the circumstances. These statements involve risks and
uncertainties that could cause actual results to differ materially from those
suggested in the forward-looking statements, including but not limited to, the
performance of our management team, market acceptance of our directed sound
technologies and products, entry of competitors, the possibility our intellectual
property protections will not prevent others from marketing products similar to
or competitive with our products, potential technical or manufacturing
difficulties that could delay product deliveries or increase warranty costs, and
other risks identified and discussed in our filings with the Securities and
Exchange Commission. These forward-looking statements are based on information
and management's expectations as of the date hereof. Future results may differ
materially from our current expectations. For more information regarding other
potential risks and uncertainties, see the "Risk Factors" section of the
Company's Form 10-K for the fiscal year ended September 30, 2007 and Form 10-Q
for the quarter ended March 31, 2008. American Technology Corporation disclaims
any intent or obligation to update those forward-looking statements, except as
otherwise specifically stated.
American Technology Corporation
Condensed Consolidated Balance Sheets
(000's omitted)
March 31,September 30,
20082007
(Unaudited)
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents$4,457 $6,415
Accounts receivable, net1,677938
Inventories, net3,7453,803
Prepaid expenses and other317259
------------- -------------
Total current assets10,19611,415
Equipment, net376422
Patents, net1,2141,364
Deposits5858
------------- -------------
Total assets$11,844 $13,259
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable$1,448 $772
Accrued liabilities1,493871
------------- -------------
Total current liabilities2,9411,643
Total stockholders' equity8,90311,616
------------- -------------
Total liabilities and stockholders' equity$11,844 $13,259
============= =============
American Technology Corporation
Condensed Statements of Operations
(000's omitted except share and per share amounts)
(Unaudited)
For the three monthsFor the six months
ended March 31,ended March 31,
============================================
2008200720082007
========================================
Total revenues$2,048$2,261$4,584$6,166
Cost of revenues1,3171,1542,6993,088
----------------------------------------
Gross profit7311,1071,8853,078
----------------------------------------
Operating expenses:
Selling, general and
administrative1,7541,6853,7833,729
Research and development1,1675451,9771,069
----------------------------------------
Total operating expenses2,9212,2305,7604,798
----------------------------------------
Loss from operations(2,190)(1,123)(3,875)(1,720)
----------------------------------------
Other income (expense):
Interest income5790127206
Finance expense----(109)(33)
----------------------------------------
Total other income
(expense)579018173
----------------------------------------
Net loss$(2,133) $(1,033) $(3,857) $(1,547)
========================================
Net loss per share of common
stock - basic and diluted$(0.07) $(0.03) $(0.13) $(0.05)
========================================
Average weighted number of
common shares outstanding30,535,20730,142,42630,535,20730,115,565
========================================
FOR FURTHER INFORMATION CONTACT:
Investor Relations:
Robert Putnam
(858) 676-0519
Email Contact
SOURCE: American Technology Corporation ATCO |
