American Technology Corporation Reports Record Quarterly Revenues; Company Announces New LRAD Orders, Forecasts Record Revenues for Fiscal 2005.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 record quarterly revenues for its first fiscal quarter of 2005 ended December 31, 2004. Revenues for the quarter were $4.41 million compared to $0.77 million in the first quarter of fiscal 2004, an increase of 469 percent. The company's government/force protection systems group and business group generated revenues of $4.22 million and $0.19 million, respectively, in the first quarter. The company reported a gross profit of $2.88 million in the first quarter compared to $0.36 million for the same quarter in fiscal 2004. The company also reported a loss from operations of $0.58 million for the quarter, compared to a loss from operations of $1.15 million for the same period in fiscal 2004. Due to a $0.95 million non-cash derivative revaluation Revaluation A calculated adjustment to a country's official exchange rate relative to a chosen baseline. The baseline can be anything from wage rates to the price of gold to a foreign currency. In a fixed exchange rate regime, only a decision by a country's government (i.e. expense related to an increase in the fair value of a warrant issued in connection with the company's committed equity financing Equity Financing The act of raising money for company activities by selling common or preferred stock to individual or institutional investors. In return for the money paid, shareholders receive ownership interests in the corporation. facility (CEFF CEFF Colorado Environmental Film Festival ) announced in December 2004, net loss available to common stockholders was $1.53 million compared to $1.14 million for the same quarter last year. After deducting non-cash dividends on preferred stock Stock shares that have preferential rights to dividends or to amounts distributable on liquidation, or to both, ahead of common shareholders. Preferred stock is given preference over common stock. Holders of preferred stock receive dividends at a fixed annual rate. , net loss available to common stockholders was $(0.09) per basic or diluted share compared to $(0.07) per basic or diluted share for the same period last year. The related warrant liability of $1.8 million, as may be further revalued, is expected to be re-classified as equity, upon the effectiveness of the registration statement filed in connection with the CEFF or upon exercise of the warrants. MANAGEMENT COMMENTARY "Growing 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) orders for expanding military, government and commercial applications contributed to record first quarter revenues," said Elwood G. Norris, chairman of American Technology Corporation. "In the first quarter, we reduced our operating losses 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. compared to the first quarter of fiscal 2004 while increasing our commitment to research and development by 225 percent. Due to the growing demand for our proprietary sound reproduction technologies from government/military and commercial customers of our government and force protection systems group, we are projecting a substantial increase in fiscal 2005 revenues having already surpassed fiscal 2004 revenues midway through our second fiscal quarter." "The investment we made last year in improving the reliability of our proprietary sound reproduction products, focusing our sales and marketing efforts, and outsourcing manufacturing to enable us to respond quickly to volume orders, is producing results," explained Kalani Jones, president and COO of ATC. "These results are now evident in our government and force protection systems group. Our business group is making progress and is expected to increase revenues in the fiscal third and fourth quarters this year though orders from digital signage Digital signage is a form of out-of-home advertising in which content and messages displayed on an electronic screen, or digital sign, can be changed without modification to the physical sign, typically with the goal of delivering targeted messages to specific locations at customers in Asia, Europe and North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. ." Announcing recent LRAD orders, ATC's vice president of government and force protection systems, Carl Gruenler, said, "Beyond the $4.9 million U.S. Army order we were awarded in December, we recently received two LRAD orders totaling $631,000. The first is a $286,000 contract from the U.S. Navy for delivery of LRADs with Phraselators from VoxTec (an Annapolis, Maryland-based company, and a division of Marine Acoustics acoustics (ək  `stĭks) [Gr.,=the facts about hearing], the science of sound, including its production, propagation, and effects. , Inc (MAI MAI Mail (File Name Extension)MAI Multilateral Agreement on Investment MAI Maius (Latin: May) MAI Ministerul Administratiei si Internelor (Romanian) )) for new DDG DDG Guided Missile Destroyer DDG Deutsche Diabetes Gesellschaft DDG Deputy Director General DDG Drop Dead Gorgeous DDG Deutsche Dermatologische Gesellschaft (German Society of Dermatologists) Destroyers under construction at Bath Iron Works Bath Iron Works (BIW) is a shipyard located on the Kennebec River in Bath, Maine. Since its foundation in 1884 by Thomas W. Hyde, Bath Iron Works has built private, commercial and military vessels. in Bath, Maine Bath is a city in Sagadahoc County, Maine, in the United States. As of the 2000 census, the city population was 9,266. It is the county seat of Sagadahoc CountyGR6. Located on the Kennebec River, Bath is a port of entry with a good harbor. and Northrop Grumman Ship Systems Northrop Grumman Ship Systems (NGSS) is the division of Northrop Grumman Corporation responsible for building small and medium shipping products. A separate sector of Northrop Grumman, Northrop Grumman Newport News, is responsible for nuclear submarines and supercarriers. located in Pascagoula, Mississippi Pascagoula is a city in Jackson County, Mississippi, United States. It is the principal city of the Pascagoula, Mississippi Metropolitan Statistical Area, as a part of the Gulfport-Biloxi-Pascagoula, Mississippi Combined Statistical Area. . These LRADs will be used to determine intent in host nation languages while at sea, during transits, and at anchor anchored. See also: Anchor or pierside. The second is a $345,000 contract from the U.S. Army Rapid Equipping Force The Rapid Equipping Force is a U.S. Army unit intended to provide solutions to battlefield problems in a short period of time, typically 90 days or less. External links
LRAD is a proprietary long-range hailing and warning, directed acoustic device designed to communicate with authority and exceptionally high intelligibility in·tel·li·gi·ble adj. 1. Capable of being understood: an intelligible set of directions. 2. Capable of being apprehended by the intellect alone. in a 15-30 degree beam. LRAD is used to issue verbal challenges with instructions in excess of 500 hundred yards in a focused beam with a follow up warning tone to influence behavior or determine intent. Effective ranges of over 1,000 yards are being reported from United States Navy United States Navy Major branch of the U.S. military forces, charged with defending the nation at sea and maintaining security on the seas wherever U.S. interests extend. The Continental Navy was established by the Continental Congress in 1775. and Coast Guard vessels stationed in the Persian Gulf Persian Gulf, arm of the Arabian Sea, 90,000 sq mi (233,100 sq km), between the Arabian peninsula and Iran, extending c.600 mi (970 km) from the Shatt al Arab delta to the Strait of Hormuz, which links it with the Gulf of Oman. . Gruenler added, "These orders are indicative of the growing success of LRADs as significant contributors to the force protection of the U.S. Marine Corps, U.S. Navy, U.S. Coast Guard and other agencies for multiple applications and missions. We continue to receive positive operational feedback from deployment in Iraq and other parts of the world." Gruenler concluded, "Governments, agencies and companies are becoming increasingly aware of the capabilities of our LRAD and NeoPlanar(R) technologies and products for both force and commercial asset protection and next generation intelligibility. Our group has a substantial inventory of business opportunities for hailing and warning systems, acoustic non-lethal weapons capabilities, indoor and outdoor public address and mass notification systems, plus custom engineered sound solutions for government and industry, in the U.S. and internationally." Kalani Jones concluded, "While we expect to achieve record revenues this fiscal year through orders for LRAD, 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), NeoPlanar, SoundCluster(TM) and other proprietary sound technologies and products, each quarter's results will be dependent upon the timing of when orders are received and fulfilled. This quarter to date, we have shipped, over $2 million in products with further orders expected to be received and shipped before March 31. In fiscal 2005, we are devoting significant resources to bring to market new devices including smaller LRADs with new features. We are also planning to introduce proprietary products that, for the first time, combine our LRAD and HSS technologies into revolutionary high intensity parametric devices which we expect will generate substantial business interest and further enhance our industry leadership in Shaping the Future of Sound(R)." 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 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 ); NeoPlanar(R), SoundCluster(TM) and others. The Company is establishing a strong portfolio of patents, trademarks and intellectual property including over 160 U.S. and foreign patents and patent filings 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. 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 changes in the sound reproduction industry, the need for market acceptance of our sound reproduction technologies, entry of competitors in the sound reproduction market, 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 products, possible government regulations, warranty or other claims, the outcome of pending or future litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , general economic and political factors which influence buying decisions, 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. 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
months ended
December 31,
---------------
2004 2003
Revenues: ------ ------
Product sales $4,347 $619
Contract and license 62 156
------ ------
Total revenues 4,409 775
Cost of revenues 1,528 409
------ ------
Gross profit 2,881 366
------ ------
Operating expenses:
Selling, general and administrative 1,995 1,072
Research and development 1,461 449
------ ------
Total operating expenses 3,456 1,521
------ ------
Loss from operations (575) (1,155)
------ ------
Other income (expense):
Interest income (expense) (2) 19
Unrealized loss on changes in value of warrant
liability (950) -
------ ------
Total other income (expense) (952) 19
------ ------
Net loss (1,527) (1,136)
Dividend requirements on convertible preferred stock 278 294
------ ------
Net loss available to common stockholders $(1,805) $(1,430)
------ ------
Net loss per share of common stock -- basic and
diluted $(0.09) $(0.07)
------ ------
Average weighted number of common shares outstanding 19,813 19,377
------ ------
AMERICAN TECHNOLOGY CORPORATION
Condensed Balance Sheets
(in thousands)
December September
31, 30,
2004 2004
(unaudited) (a)
ASSETS ------ ------
Current Assets:
Cash $3,829 $4,179
Accounts Receivable 3,602 927
Inventories 923 651
Prepaid expenses and other 192 156
------ ------
Total current assets 8,546 5,913
Equipment, net 585 453
Patents, net 1,296 1,279
Other 898 -
------ ------
Total assets $11,325 $7,645
------ ------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $2,003 $1,300
Accrued liabilities 1,501 1,129
Capital lease short-term portion 11 11
------ ------
Total current liabilities 3,515 2,440
------ ------
Long-Term Liabilities 3,067 12
Stockholders' equity 4,743 5,193
------ ------
Total liabilities and stockholders' equity $11,325 $7,645
------ ------
(a) Derived from the audited financial statements as of
September 30, 2004
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