American Technology Corporation Reports Record Revenues for Fiscal 2005; Company Recaps Fiscal 2005, Provides Business Update.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 directed sound products and technologies, today reported record revenues for its fiscal year 2005, ended September September: see month. 30, 2005. Revenues for fiscal 2005 increased nearly 77% to $10.2 million compared to $5.8 million in fiscal 2004. The company's government/force protection systems group and commercial products group generated revenues of $9.3 million and $0.9 million, respectively. Gross profit for the fiscal year ended September 30, 2005 increased nearly 100% to $4.6 million for the fiscal year compared to $2.3 million for fiscal year 2004. Net loss for fiscal year 2005 totaled $9.1 million compared to a net loss of $6.0 million for fiscal year 2004. Net loss attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to common stockholders, which includes non-cash dividend requirements 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. , was $(0.50) per share compared to $(0.37) per share last fiscal year. MANAGEMENT COMMENTARY "While making a major transition from focusing on research and development of new directed sound technologies to sales, marketing and licensing of our products and technologies, we achieved record fiscal year revenues," said John Zavoli, president, 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. and interim chief financial officer of American Technology Corporation. "While this transition has been challenging, we are working successfully with U.S. and international companies and organizations to create new markets and integrate our directed sound products and technologies into 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 networks and other commercial and military/government applications. "This past year, we completed the productization of four proprietary directed sound technologies, recording revenues from each," continued Zavoli. "Our 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) H-450 is gaining acceptance from digital signage and networked narrowcasting Narrowcasting has traditionally been understood as the dissemination of information (usually by radio or television) to a narrow audience, not to the general public. Some forms of narrowcasting involve directional signals or use of encryption. display providers as in-store networks proliferate pro·lif·er·ate v. To grow or multiply by rapidly producing new tissue, parts, cells, or offspring. in retail chains throughout the U.S. and abroad. Our government and force protection systems group revenues were 93% higher than last year and we have added new 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) and NeoPlanar(R) products and accessories for our customers. With key additions to our executive management team over the last two months, we believe we are refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar our approach to the sales, marketing and licensing of directed sound to expand our leadership position in this untapped market. "I came to ATC because I firmly believe there are many worldwide market opportunities where directed sound products can be very successful," Zavoli commented. "We believe our accomplishments during this past fiscal year demonstrate that our products are at price and performance points to attract serious market interest. Accelerating our product sales and revenue growth will require organizational discipline, improved customer focus, and a new, sustained marketing push of our company and products. We are focused on these areas of our business while also containing costs. "We expect fiscal 2006 revenues will surpass fiscal 2005 revenues," Zavoli concluded. "Next quarter and throughout 2006, we look forward to announcing agreements and orders for our directed sound products, and to presenting and implementing new and substantially improved marketing of ATC and our full line of directed sound products and technologies." HIGHLIGHTS AND ANNOUNCEMENTS FOR FISCAL/CALENDAR 2005
-- Invested $4.6 million in research and development in fiscal 2005
resulting in:
-- Introduction of HSS H-450 directed sound system for the
digital signage market
-- Creation of our Sound Sentinel(TM) NeoPlanar-based product
designed for Tyco/ADT Security Systems for the mass
notification market
-- Development and introduction of LRAD500(TM) (formerly known as
MRAD(TM)) for portable hailing and warning applications
-- Using feedback from 3 years of successful LRAD deployments in
harsh desert environments in Iraq and in waters around the
Middle East to further harden and improve LRAD for future
military applications
-- Innovation of a new and economical approach to directed sound
warnings, our Sound Vector(TM) technology
-- Production of new Sound Saber(TM) product, based on hardened
NeoPlanar technology, for providing audio intelligibility in
challenging acoustic environments
-- Improvements to our directed sound products and technologies,
expansion of our patent portfolio and development of
accessories making existing products adaptable to growing
market applications
-- Achieved important new orders including:
-- Over $7 million in LRAD orders shipped to the U.S. Army and
U.S. Navy in fiscal 2005
-- Multi-million dollar HSS H-450 purchase agreement from IBN for
their in-store media network located in select first tier
retail chains
-- $356,000 Sound Sentinel order from Tyco/ADT Security Systems
shipped in fiscal 2005
-- Initiated shipping over $1 million in new commercial LRAD and
U.S. Navy NeoPlanar orders in December 2005 (fiscal 2006)
-- Improved existing and developed new distribution and licensing
channels including:
-- Strengthened our LRAD distribution arrangement with ADS
-- Signed a distribution partnership with U.S. Audio Video Group
-- Developed an important Sound Vector licensing agreement with
ECCO Group
-- Created new HSS product line distribution through an agreement
with ActiveLight
-- Corporate developments and activities included:
-- Appointed John Zavoli as president and chief operating
officer, and interim chief financial officer
-- Closed $14 million institutional financing
-- Increased national and international awareness of LRAD as a
result of an LRAD's successful deployment in defending a
luxury cruise ship off the coast of Somalia in November 2005
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(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. ATC 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. 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)
Years Ended September 30,
2005 2004
----------------------------------------------------------------------
Total revenues 10,195 5,753
Cost of revenues 5,624 3,470
------------- -----------
Gross profit 4,571 2,283
------------- -----------
Operating expenses:
Selling, general and administrative 9,333 5,310
Research and development 4,622 2,989
------------- -----------
Total operating expenses 13,955 8,299
------------- -----------
Loss from operations (9,384) (6,016)
------------- -----------
Other income (expense):
Interest income 84 58
Interest expense (837) (3)
Gain (loss) on asset disposition -
Unrealized gain on derivative revaluation 1,233 -
Warrant impairment expense (183) -
Other - -
------------- -----------
Total other income (expense) 297 55
------------- -----------
Net loss (9,087) (5,961)
Dividend requirements on convertible
preferred stock 1,796 1,365
------------- -----------
Net loss available to common stockholders $(10,883) $(7,326)
------------- -----------
Net loss per share of common stock - basic
and diluted $(0.50) $(0.37)
------------- -----------
Average weighted number of common shares
outstanding 21,570,002 19,603,265
------------- -----------
AMERICAN TECHNOLOGY CORPORATION
Condensed Balance Sheets
(000's omitted except per share amounts)
September 30,
2005 2004
----------------------------------------------------------------------
ASSETS
Current Assets:
Cash $10,348 $4,179
Accounts Receivable 880 927
Inventories 1,800 651
Prepaid expenses and other 201 156
--------- --------
Total current assets 13,229 5,913
Equipment, net 607 453
Patents, net 1,373 1,279
--------- --------
Total assets $15,209 $7,645
--------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $1,985 $1,300
Accrued liabilities: 1,224 1,129
Derivative warrant instrument 282 -
Capital lease short-term portion 12 11
--------- --------
Total current liabilities 3,503 2,440
--------- --------
Long-Term Liabilities: -
Derivative warrant instrument 1,564
Capital lease long-term portion - 12
--------- --------
Total liabilities 5,067 2,452
--------- --------
Total stockholders' equity 10,142 5,193
--------- --------
Total liabilities and stockholders' equity $15,209 $7,645
--------- --------
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