LRAD Corporation Reports Profitable Fiscal Q3 2010 and Record Fiscal Nine-Month
Profit
Company on Track to Record First Profitable Fiscal Year
SAN DIEGO, CA, Aug 04, 2010 (MARKETWIRE via COMTEX) -- LRAD Corporation (LRAD),
the global leader in acoustic hailing devices (AHDs), today reported revenues of
$3.1 million and a quarterly profit of $68,000, or $0.00 per diluted share, for
its fiscal third quarter ended June 30, 2010 (fiscal Q3 2010). The Company also
reported revenues of $12.0 million and a record profit of $2.1 million, or $0.07
per diluted share, for the nine-month period ended June 30, 2010.
"We delivered our third consecutive profitable quarter in spite of delays in
receiving expected orders from the U.S. Military," commented Tom Brown, president
and chief executive officer of LRAD Corporation. "We shipped approximately
$700,000 of the over $3.0 million in U.S. military orders received and reported
in the last two weeks of fiscal Q3. New orders, along with the remaining $2.3
million in fiscal Q3 LRAD(R) orders, are scheduled to ship this quarter (fiscal
Q4 2010) and in our next fiscal year."
Revenues for fiscal Q3 2010 decreased 30% to $3.1 million from $4.4 million
recorded in fiscal Q3 2009 due primarily to delays in receiving orders from the
U.S. Military. Gross profit for fiscal Q3 2010 was $1.5 million, or 49% of
revenues, compared to $2.0 million, or 45% of revenues, for the quarter ended
June 30, 2009, primarily due to reduced revenue.
Operating expenses for fiscal Q3 2010 decreased by 18% to $1.5 million, compared
to $1.9 million for the same period in the prior year. Non-cash share-based
compensation expense decreased by $216,000 and commission expense decreased by
$192,000, offset by an increase of $97,000 for bonus accrual.
Net income for fiscal Q3 2010 was $68,000, or $0.00 per diluted share, compared
to net income of $136,000, or $0.00 per diluted share, for the same period last
year. Net income decreased due to lower revenue partially offset by lower
operating expenses, and a $74,000 unrealized gain on derivative revaluation
related to warrant instruments with re-pricing options.
For the nine months ended June 30, 2010, revenues decreased 6% to $12.0 million
from $12.8 million recorded for the nine months ended June 30, 2009. For the
first nine months of fiscal 2010, gross profit was $6.5 million, or 54% of
revenues, compared to $6.2 million, or 49% of revenues, for the same period a
year ago. Gross profit increased year to date despite a reduction in revenues due
to improved product margins from lower product costs, lower warranty costs,
reduced inventory obsolescence expense, and reduced manufacturing overhead
spending.
Operating expenses for the nine months ended June 30, 2010 were $5.0 million, a
decrease of $1.1 million from the same period a year ago. The reduction from the
prior year was due primarily to decreases of $1.0 million in non-cash share-based
compensation expense, $303,000 in sales commission expense, $96,000 of favorable
accounting and audit services, and $72,000 in lower salaries, offset by $32,000
of increased marketing expenses, $62,000 in higher product development expenses,
and $260,000 for accrued bonuses.
Net income for the nine months ended June 30, 2010 was $2.1 million, or $0.07 per
diluted share, compared to net income of $134,000, or $0.00 per share, for the
same nine-month period last year. The Company's profitable results for the first
nine months of fiscal 2010 were due to improved gross margins, a reduction in
selling, general and administrative expenses, and a $748,000 unrealized gain on
derivative revaluation. Cash and cash equivalents at June 30, 2010 were $5.7
million, compared to $5.1 million at September 30, 2009. The increase was
primarily due to net income during the nine months ended June 30, 2010.
"We remain on course for anticipated record fiscal year revenues, reporting our
fourth consecutive profitable quarter, and our first profitable fiscal year,"
concluded Brown. "We look forward to discussing our fiscal Q3 2010 results and
other business developments on our August 5th conference call."
About LRAD Corporation LRAD Corporation's Long Range Acoustic Device(R) (LRAD(R))
directional sound systems are being used around the world in diverse applications
including, fixed and mobile military deployments, maritime security, critical
infrastructure and perimeter security, commercial security, border and port
security, law enforcement and emergency responder communications, and wildlife
preservation and control. For more information about LRAD Corporation and its
long-range directional sound systems, please visit the company's web site at
lradx.com. |
