American Technology Corporation Announces Second Quarter Results; Company Reports Over $7.5 Million in Order Backlog.SAN DIEGO San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. -- American Technology Corporation  Please help [ improve this article] by expanding it.Further information might be found on the talk page or at requests for expansion. (ATC ATC Air Traffic Control ATC Average Total Cost ATC Certified Athletic Trainer ATC At the Center (Hartford, Maine retreat center) ATC Applied Technology Council ATC All Things Considered ) (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :ATCO ATCO Air Traffic Control Officer ATCO Association of Transport Coordinating Officers (UK) ATCO Air Tanker/Fixed Wing Coordinator ATCO Aviation Transportation Coordination Office ATCO Air Taxi and Commercial Operator ), a leading innovator of commercial, government and military directed sound products and solutions, today announced its results for its second fiscal quarter ended March 31, 2006. For the second quarter of fiscal year 2006, the Company reported revenues of $1.47 million, compared to $2.82 million in the second quarter of fiscal year 2005 and $1.90 million in the first fiscal quarter ended December December: see month. 31, 2005. The decrease in revenues in the second quarter ended March 31, 2006 compared to the same quarter a year ago resulted primarily from a reduction in military sales and the inclusion of product revenues of $1.7 million (part of a $4.9 million order received in December 2004) in the prior year's second quarter. For the second quarter of fiscal year 2006, the Company's gross profit was $188,000 or approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 13% of revenues compared to a gross profit of $1.33 million, or approximately 47% of revenues for the same quarter a year ago, and compared to a gross profit of $1.06 million, or approximately 56% of revenues for the first fiscal quarter ended December 31, 2005. The decrease in gross profit both absolute and as a percentage of revenues to the same quarter a year ago was principally the result of the decreased sales of our higher margin LRAD LRAD Long Range Acoustic Device (non-lethal weapon that creates a directed beam of earsplitting noise) LRAD Long-Range Alpha (Particle) Detection LRAD Licentiate of the Royal Academy of Dance (TM) products. Net loss for the second quarter of fiscal year 2006 was $2.63 million compared to a net loss of $1.61 million for the same quarter a year ago and a net loss of $770,516 for the first fiscal quarter ended December 31, 2005. The second quarter 2006 net loss increased over the same quarter a year ago primarily due to the decrease in revenues and gross profit as a result of reduced LRAD deliveries to government and military customers. Net loss available to common stockholders for the quarter was $(0.11) per share compared to $(0.15) per share for the same quarter last fiscal year and $(0.03) for the first fiscal quarter ended December 31, 2005. For the six months ended March 31, 2006, the Company reported revenues of $3.37 million, compared to $7.23 million for the six months ended March 31, 2005. The decrease in revenues for the six months ended March 31, 2006 compared to the same six months a year ago resulted primarily from a reduction in military sales and the impact of an order totaling $4.9 million reported during the six months ended March 31, 2005. For the first six months of fiscal year 2006, the Company's gross profit was $1.25 million or approximately 37% of revenues, compared to $4.17 million, or approximately 58% of revenues for the same period a year ago. The decrease in gross profit both absolute and as a percentage of revenues was principally the result of the decreased sales of our higher margin LRAD products. Net loss for the first six months of fiscal year 2006 was $3.40 million compared to a net loss of $3.14 million for the same period a year ago. The net loss for the first six months of fiscal 2006 increased over the same period a year ago primarily due to the decrease in revenues and gross profit as a result of reduced LRAD deliveries to government and military customers and significant expense incurred in evaluating the Company's system of internal controls over financial reporting for compliance with Section 404 of the Sarbanes-Oxley Act See SOX. . Net loss available to common stockholders for the first six months of fiscal 2006 was $(0.14) per share compared to $(0.24) per share for the same period last fiscal year. ATC also reported that its research and development expenses decreased to $502,000 for the three months ended March 31, 2006 compared to $1.47 million for the same period a year ago. The company also reported its order backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. was approximately $7.5 million at March 31, 2006 compared to $128,000 at March 31, 2005. "In the second quarter, we experienced several challenges that affected our financial results including material shortages, transitioning to a new contract manufacturer, hiring new members of the management and operations teams, and a company headquarters facility move," said John Zavoli, president and chief operating officer Chief Operating Officer (COO) The officer of a firm responsible for day-to-day management, usually the president or an executive vice-president. of ATC. "With the move behind us and our management and operations positions filled, we are addressing the material shortages and making good progress in ramping up product builds and deliveries with the new contract manufacturer. "We are also driving down our R & D expenses while working on reducing costs, increasing product margins, and growing the markets for our directional In one direction. Contrast with omnidirectional. acoustic acoustic /acous·tic/ (ah-kldbomacs´tik) relating to sound or hearing. a·cous·tic or a·cous·ti·cal adj. Of or relating to sound, the sense of hearing, or the perception of sound. beam forming products and technologies," commented Zavoli. "With $5.7 million of our $7.5 million backlog shippable in this fiscal year per purchase order contracts, year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. sales of $3.4 million, and expected continuing orders during the second half of our fiscal year, dependent on our ability to manufacture to meet demand, we anticipate exceeding fiscal 2005 revenues," concluded Zavoli. About American Technology Corporation American Technology Corporation is Shaping the Future of Sound(R) through its proprietary directed sound products and technologies which include: the award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" HSS HSS Humanities and Social Sciences HSS High Speed Steel HSS Home Subscriber Server (3GPP) HSS Hospital for Special Surgery (New York, NY, USA) HSS Hospital for Special Surgery HSS History of Science Society (R) (HyperSonic hy·per·son·ic adj. Of, relating to, or capable of speed equal to or exceeding five times the speed of sound. hy (R) Sound technology); LRAD(TM) (Long Range Acoustic Device The long range acoustic device (LRAD) is a crowd-control and hailing device developed by American Technology Corporation. The equipment weighs 45 pounds (20 kg) and can emit sound in a 15 to 30° beam (only at high frequency) from a device 33 inches (83 cm) in ) products family; NeoPlanar(R) products family, Sound Vector(TM) technology, and others. The Company is establishing a strong portfolio of patents, trademarks, and intellectual property including over 320 U.S. and foreign patents and pending patent applications to date. For more information on the company and its technologies and products please visit our web site at www.atcsd.com. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. statement under the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995: Except for historical information contained herein, the matters discussed are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. 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 CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . 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 COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. , 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 An assurance, promise, or guaranty by one party that a particular statement of fact is true and may be relied upon by the other party. Warranties are used in a variety of commercial situations. In many instances a business may voluntarily make a 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 here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" . 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended September September: see month. 30, 2005 and Form 10-Q Form 10-Q See 10-Q. for the quarter ended March 31, 2006. American Technology Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated.
American Technology Corporation
Condensed Statements of Operations
(000's omitted except per share amounts)
(Unaudited)
For the three
months ended
March 31,
-----------------------
2006 2005
----------- -----------
Total revenues $1,466 $2,817
Cost of revenues 1,278 1,490
----------- -----------
Gross profit 188 1,327
----------- -----------
Operating expenses:
Selling, general and administrative 2,047 2,044
Research and development 502 1,466
----------- -----------
Total operating expenses 2,549 3,510
----------- -----------
Loss from operations (2,361) (2,183)
----------- -----------
Other income (expense):
Interest income 71 19
Interest expense -- (131)
Unrealized gain (loss) on derivative
revaluation (340) 682
----------- -----------
Total other income (expense) (269) 570
----------- -----------
Net loss (2,630) (1,613)
Dividend requirements on convertible preferred
stock -- 1,519
----------- -----------
Net loss available to common stockholders $(2,630) $(3,132)
=========== ===========
Net loss per share of common stock - basic and
diluted $(0.11) $(0.15)
=========== ===========
Average weighted number of common shares
outstanding 24,382,731 20,665,004
=========== ===========
American Technology Corporation
Condensed Balance Sheets
(000's omitted except per share amounts)
(Unaudited)
March September
31, 30,
2006 2005
ASSETS
Current Assets:
Cash and cash equivalents $5,449 $10,348
Accounts Receivable 1,943 880
Inventories, net of $494 and $691 reserve for
obsolescence 1,648 1,800
Prepaid expenses and other 161 201
-------- ---------
Total current assets 9,201 13,229
Equipment, net 672 607
Patents, net 1,408 1,373
Long term deposits 58 --
-------- ---------
Total assets $11,339 $15,209
======== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $1,435 $1,985
Accrued liabilities 1,014 1,224
Derivative warrant instrument 1 282
Capital lease short-term portion 5 12
-------- ---------
Total current liabilities 2,455 3,503
Long-Term Liabilities:
Derivative warrant instrument 1,153 1,564
-------- ---------
Total liabilities 3,608 5,067
-------- ---------
Total stockholders' equity 7,731 10,142
-------- ---------
Total liabilities and stockholders' equity $11,339 $15,209
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