American Technology Reports Fivefold Increase in Second Quarter Revenues; Company Achieves Improved Margins, Reduces Net Loss.Business Editors SAN DIEGO--(BUSINESS WIRE)--May 5, 2004 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 reproduction, capacity of all living systems to give rise to new systems similar to themselves. The term reproduction may refer to this power of self-duplication of a single cell or a multicellular animal or plant organism. technologies, posted record revenues for the second quarter of fiscal 2004, ended March 31, 2004. Revenue for the quarter was $1.493 million compared to $0.238 million in the second quarter of fiscal 2003, an increase of 526%. The company's Government/Force Protection Group and Business Group generated revenues of $1.038 million and $0.455 million, respectively, in the second quarter. Second quarter 2004 revenues increased 92% over the first quarter. The company reported a gross profit of $0.548 million in the second quarter compared to a gross loss of $0.113 million for the same quarter in fiscal 2003. The company also reported a net loss of $1.165 million for the quarter, a 37% reduction from the net loss of $1.855 million for the same period in fiscal 2003. Net loss attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to common stockholders 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. was $(0.08) per share compared to $(0.18) per share for the same quarter last year. SIX MONTH RESULTS For the six months ended March 31, 2004, total revenue was $2.268 million compared to $0.662 million for the same period last year, a 243% increase. The company reported a gross profit of $0.914 million compared to a gross loss of $0.010 million for the same six months in fiscal 2003. The company had a net loss of $2.302 million during the six months, a 36% reduction from the net loss of $3.585 million for the same period in fiscal 2003. Net loss attributable to common stockholders after deducting non-cash dividends on preferred stock was $(0.15) per share for the first six months of fiscal 2004 compared to $(0.31) per share for the same period last year. MANAGEMENT COMMENTARY "We are pleased with the record revenues achieved in the second quarter by the combined efforts of our Business Group and our Government/Force Protection Group," said Elwood Elwood, city (1990 pop. 9,494), Madison co., central Ind.; inc. 1872. It has large canneries and plants that make a variety of metal, electrical, and machine goods. Wendell L. Willkie was born there. G. Norris, chairman of American Technology Corporation. "We are experiencing increasing worldwide demand for our proprietary sound technologies and products and expect continued revenue growth in the second half of fiscal 2004. We look forward to providing further revenue guidance at our May 27 annual meeting of stockholders." The Company will be providing a live webcast of the annual meeting. Details of the webcast will be announced before the meeting. "We have made important internal changes to our management and operations and we are building strategic business relationships to sell, manufacture, distribute and install our expanding portfolio of sound products," added Kalani Jones, president and COO (Cell Of Origin) See mobile positioning. of ATC. "Government Group revenues increased 50% from the first to the second quarter as a result of increased 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) deliveries to government customers. Business Group revenues reflected increased 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) shipments and a major NeoPlanar(R) delivery. As a result of increasing customer demand, we are growing our sales force in both our divisions and we are adding product development teams to rapidly create new solutions employing our HSS, LRAD, NeoPlanar and other sound technologies." HIGHLIGHTS AND ANNOUNCEMENTS FOR THE SECOND FISCAL QUARTER -- Announced 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 (LRAD) is becoming increasingly sought after by military and government agencies for a range of applications because of its ability to be highly directional In one direction. Contrast with omnidirectional. while effectively communicating over long distances. -- Awarded $1.088 million contract to deliver LRADs(TM) to U.S. Marine Corps Units. -- Completed and delivered NeoPlanar(R) speakers for a major Las Vegas venue venue In law, the place or county in which the events giving rise to a legal action take place and from which a jury may be drawn to try the case. Venue statutes usually specify that a trial must take place in the district that has jurisdiction over the matter. . -- Delivered LRADs to U.S. Marine Corps units as well as other government/force protection agencies. -- HSS shipments to new customers and reorders from existing customers were up sharply in the second quarter. HSS units have been purchased and are in several advanced trials, with corporate users targeting thousands of systems each for 2004/2005 rollout. Business Group focusing on point-of-purchase and 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 applications, where HSS is a unique and compelling solution. -- Increasing media coverage of HSS and LRAD products and applications is creating marketplace momentum and a strategic technology position. -- Promoted Kalani Jones to president. 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), NeoPlanar(R) Technology, LRAD(TM) (Long Range Acoustic Device), PureBass(R) Sub-Woofer Technology and Stratified stratified /strat·i·fied/ (strat´i-fid) formed or arranged in layers. strat·i·fied adj. Arranged in the form of layers or strata. Field(R) Technology (SFT SFT Statens Forurensningstilsyn (Norwegian Pollution Control Authority) SFT System Fault Tolerance SFT Shaft SFT Secure File Transfer SFT School Food Trust (UK) SFT Societe Francaise des Traducteurs (R)). The Company is establishing a strong portfolio of patents, trademarks and intellectual property, including over 140 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 and 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 changes in the sound reproduction industry, our ability to develop future products, technology shifts, potential technical or manufacturing difficulties that could delay products, competition, pricing pressures, the uncertainty of market acceptance of new products and services by customers, 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, 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 factors and other risks identified and discussed in the Company's 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 the Company's 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 Balance Sheets
(in thousands)
March 31, September 30,
2004 2003 (a)
(unaudited)
--------------- ---------------
ASSETS
Current Assets:
Cash $6,580 $9,850
Accounts receivable 1,406 184
Inventories 624 409
Prepaid expenses and other 82 34
--------------- ---------------
Total current assets 8,692 10,477
Equipment, net 245 200
Patents, net 1,226 1,067
--------------- ---------------
Total assets $10,163 $11,744
=============== ===============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable $723 $604
Accrued liabilities 1,035 1,379
Capital lease short-term portion 10 10
--------------- ---------------
Total current liabilities 1,768 1,993
--------------- ---------------
Long-Term Liabilities 17 23
Stockholders' equity 8,378 9,728
--------------- ---------------
Total liabilities and stockholders'
equity $10,163 $11,744
=============== ===============
(a) Derived from audited financial statements as of September 30,
2003.
AMERICAN TECHNOLOGY CORPORATION
Condensed Statements of Operations
(in thousands except per share amounts)
(unaudited)
For the three For the six
months ended months ended
March 31, March 31,
----------------- -----------------
2004 2003 2004 2003
-------- -------- -------- --------
Revenues:
Product sales $1,493 $146 $2,112 $534
Contract and license - 92 156 128
-------- -------- -------- --------
Total revenues 1,493 238 2,268 662
Cost of revenues 945 351 1,354 672
-------- -------- -------- --------
Gross profit 548 (113) 914 (10)
-------- -------- -------- --------
Operating expenses:
Selling, general, and
administrative 1,079 909 2,152 1,665
Research and development 644 727 1,093 1,309
-------- -------- -------- --------
Total operating expenses 1,723 1,636 3,245 2,974
-------- -------- -------- --------
Loss from operations (1,175) (1,749) (2,331) (2,984)
Other income (expense): 10 (106) 29 (601)
-------- -------- -------- --------
Net loss (1,165) (1,855) (2,302) (3,585)
Dividend requirements on
convertible preferred stock 407 810 700 965
-------- -------- -------- --------
Net loss available to common
stockholders $(1,572) $(2,665) $(3,002) $(4,550)
======== ======== ======== ========
Net loss per share of common stock
- basic and diluted $(0.08) $(0.18) $(0.15) $(0.31)
======== ======== ======== ========
Average weighted number of common
shares outstanding 19,508 14,898 19,442 14,629
======== ======== ======== ========
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