American Technology Corporation Reports Fiscal Third Quarter Results.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: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 ), an innovator of proprietary sound reproduction technologies, today reported results for its third fiscal quarter of 2005 ended June June: see month. 30, 2005. Revenues for the quarter were $1.39 million compared to $2.11 million for the third quarter of fiscal 2004, a decrease of 34 percent. The company's mix of business in the third quarter of 2005 was approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 88% government and force protection systems group and 12% commercial products group, compared to 87% and 13% for the three month period ended June 30, 2004. The decrease in revenues in the third quarter resulted primarily from reduced government sales of 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 compared to the same period of 2004. The company's government sales consist of large sales to a limited number of customers and the timing of deliveries can cause quarterly results to fluctuate widely. The company reported a gross profit of $0.40 million for the third quarter compared to $1.10 million for the same quarter in fiscal 2004. The company also reported a loss from operations of $3.75 million for the quarter, compared to a loss from operations of $1.40 million for the same period in fiscal 2004. The third quarter's research and development expenses reflected high levels of prototype Prototype A first or original model of hardware or software. Prototyping involves the production of functionally useful and trustworthy systems through experimentation with evolving systems. costs, temporary staffing and other startup (STARTing UP) "At startup" means when the computer is first turned on or when a program is first loaded. See Startup folder. costs associated with MRAD mrad millirad; one thousandth (10-3) of a rad. mrad millirad. A non-SI unit now replaced by the gray. (TM) and 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) H450 products. Other operating costs operating costs npl → gastos mpl operacionales increased as the company marketed more products and incurred increased public company compliance costs. Net loss available to common stockholders for the third quarter of 2005 was $(0.17) per basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to $(0.09) per basic and diluted share for the same period last year. Revenues for the first nine months of fiscal 2005 were $8.62 million compared to $4.38 million for the first nine months of fiscal 2004, an increase of 97 percent. For the nine month period ended June 30, 2005, the company's mix of business was approximately 95% government and force protection systems group and 5% commercial products group, compared to 82% and 18% for first nine months of fiscal 2004. The company reported a gross profit of $4.65 million for the first nine months of fiscal 2005 compared to $2.02 million for the same period in fiscal 2004. The company also reported a loss from operations of $6.50 million for the first nine months, compared to a loss from operations of $3.73 million for the same period in fiscal 2004. The increased operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. was due to temporary increases in research and development, and increases in selling, general and administrative expenses. For the first six months of fiscal 2005, net loss available to common stockholders including non-cash deemed dividends was $(0.41) per basic and diluted share compared to $(0.24) per basic and diluted share for the same period last year. MANAGEMENT COMMENTARY "We are very excited by both customers' and market reaction to our new HSS H450 and MRAD products reflected in new orders, 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. , increasing product trials and demonstrations," said Kalani Jones, president and chief operations officer of American Technology Corporation. "We now have an impressive line of eight products, protected by over 320 U.S. and foreign patents and pending patent applications, that provide a wide range of directional sound
Directional Sound solutions for current and prospective customers. We expect a significant reduction in research and development expenses in the fourth quarter as we have substantially reduced the number of employees and temporary contractors and have completed related prototyping (1) Creating a demo of a new system. Prototyping is essential for clarifying information requirements. The design of a system (functional specs) must be finalized before the system can be built. and startup costs. "We remain on track for a substantial increase in fiscal 2005 revenues over fiscal 2004, having recorded over $8.62 million in products and services in the first nine months of the fiscal year. While our quarterly revenues will fluctuate due to the early stages of the markets and products in which we are involved and the timing of product deliveries, we expect a major improvement in our operating and financial performance as we focus on sales and maintain a lean organization." Jones concluded, "We expect to record revenues this quarter from our growing backlog of orders for our new HSS H450, our recently announced SoundVector(TM) product license, and from MRAD, LRAD and NeoPlanar(R)-based products sales. We continue to expect approximately $4 million in revenues in fiscal Q4 2005, with significant contributions from both the government and force protection systems group and the commercial products group." About American Technology Corporation American Technology Corporation is Shaping the Future of Sound(R) by developing, manufacturing and globally distributing its proprietary sound technologies and products which include: the award-winning Adj. 1. award-winning - having received awards; "this award-winning bridge spans a distance of five miles" HSS(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, 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 our dependence on a limited number of large orders, the unproven unproven Dubious, nonscientific, not proven, quack, questionable, unscientific adjective Relating to that which has not been validated by reproducible experiments or other scientific methods for determining effect or efficacy markets for many of our sound technologies, changes in the sound reproduction industry, the need for market acceptance of our sound reproduction technologies particularly in our commercial products group, the 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. in our target markets, the possibility our intellectual property protections will not prevent others from marketing products similar to or competitive with our products, our ability to develop future products which maintain a competitive advantage over competing products, pricing pressures, technology shifts, potential technical or manufacturing difficulties that could delay product introductions, possible government regulations, 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. or other claims, general economic and political factors which influence buying decisions, particularly in our government group, and other risks identified and discussed in the 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. 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
(in thousands except per share amounts)
(unaudited)
For the three For the nine
months ended months ended
----------------- -----------------
June 30, June 30,
2005 2004 2005 2004
-------- -------- -------- --------
Revenues:
Product sales $1,379 $2,089 $8,540 $4,201
Contract and license 15 18 80 174
-------- -------- -------- --------
Total revenues 1,394 2,107 8,620 4,375
Cost of revenues 992 1,006 3,973 2,360
-------- -------- -------- --------
Gross profit 402 1,101 4,647 2,015
-------- -------- -------- --------
Operating expenses:
Selling, general and
administrative 2,879 1,614 6,969 3,766
Research and development 1,269 890 4,182 1,984
-------- -------- -------- --------
Total operating expenses 4,148 2,504 11,151 5,750
Loss from operations (3,746) (1,403) (6,504) (3,735)
-------- -------- -------- --------
Other income (expense):
Interest income (expense) (115) 13 (229) 43
Unrealized gain on derivative
revaluation 451 - 183 -
Warrant impairment expense (183) - (183) -
-------- -------- -------- --------
Total other income (expense) 153 13 (229) 43
-------- -------- -------- --------
Net loss (3,593) (1,390) (6,733) (3,692)
Dividend requirements on
convertible preferred stock - 387 1,796 1,088
-------- -------- -------- --------
Net loss available to common
stockholders $(3,593) $(1,777) $(8,529) $(4,780)
-------- -------- -------- --------
Net loss per share of common stock
- basic and diluted $(0.17) $(0.09) $(0.41) $(0.24)
-------- -------- -------- --------
Average weighted number of common
shares outstanding 21,329 19,720 20,599 19,534
-------- -------- -------- --------
AMERICAN TECHNOLOGY CORPORATION
Condensed Balance Sheets
(in thousands)
June 30, September 30,
2005 2004
(unaudited) (a)
----------- -------------
ASSETS
Current Assets:
Cash $2,370 $4,179
Accounts Receivable 507 927
Inventories 1,572 651
Prepaid expenses and other 329 156
Prepaid transaction costs 660 -
----------- -------------
Total current assets 5,438 5,913
Equipment, net 693 453
Patents, net 1,355 1,279
----------- -------------
Total assets $7,486 $7,645
----------- -------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $2,121 $1,300
Accrued liabilities 1,280 1,129
Capital lease short-term portion 12 11
Derivative instrument 660 -
----------- -------------
Total current liabilities 4,073 2,440
----------- -------------
Long-Term Liabilities 1,450 12
Stockholders' equity 1,963 5,193
----------- -------------
Total liabilities and stockholders' equity $7,486 $7,645
----------- -------------
(a) Derived from the audited financial statements as of
September 30, 2004
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