American Technology reports 200 percent increase in sales through the third quarter; new AM ear-radio backlog reported at end of profitable third quarter.SAN DIEGO--(BUSINESS WIRE)--July 26, 1995--American Technology Corp. (OTC Bulletin Board OTC Bulletin Board An electronic quotation listing of the bid and asked prices of OTC stocks that do not meet the requirements to be listed on the NASDAQ stock-listing system. :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 ) Wednesday Wednesday: see week. announced record sales through the third quarter of fiscal 1995 ended June June: see month. 30, 1995. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the nine months ended June 30, 1995, were $1,471,000 compared with $491,000 in the same period of 1994, a 200 percent increase. Sales for the third quarter were $432,000, a 59 percent increase over the comparable quarter of the prior year. The company had net income of $22,000, less than 1 cent per share, for the third quarter of 1995 compared with a loss of $67,000, or 1 cent per share, for the third quarter of 1994. Third-quarter results benefited from the security gain of $71,000 in the current quarter. The net loss for the first nine months of 1995 was $302,000, or 4 cents per share Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. , compared with net income of $4,000 for the first nine months of fiscal 1994, which included a gain from the sale of investment securities of $296,000. The company incurred research and development costs of $251,000 during the current nine months compared with $60,000 for the prior period. The significant increase in research and development costs was concentrated toward bringing the AM ear-radio to production in the current quarter and continuing development on other technologies. Robert Putnam Robert David Putnam (born 1941 in Rochester, New York) is a political scientist and professor at Harvard University. Putnam developed the influential two-level game theory that assumes international agreements will only be successfully brokered if they also result in domestic , president, stated: ``We continue to experience excellent response to our FM ear-radio which accounted for substantially all sales during each period. We successfully introduced a terrific miniature AM ear-radio which uses our patented technology to provide great reception and high-quality sound in a tiny 1/2-ounce package fitting comfortably in the ear. First shipments were in late June. ``The AM radio is designed for the rapidly growing talk and sports radio Sports radio (or sports talk radio) is a radio format devoted entirely to discussion and broadcasting of sporting events. A popular format with an almost exclusively male demographic in most areas, sports radio is characterized by an often-boisterous on-air style and markets. Shipments commenced against a 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. of orders of approximately $50,000 at June 30, 1995. The addition of the AM radio broadens our product line, making our offering to retailers more attractive. ``The ability to provide a choice between FM and AM is expected to open new retailers and distribution channels. With this in mind, we are rapidly expanding our representative organization and making plans for added production capacity. Multiple products also spread fixed manufacturing overhead over more products and greater sales should in time improve margins. ``We continue to focus on important research and development projects underway at 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 . With AM development complete we expect to place additional emphasis on several versions of our Wireless Sounds transmitter/receiver technology with the goal of producing the first product in late 1995. ``Wireless Sounds is important to our future as it extends and complements the radio line and has many broad consumer applications. Its higher retail price should contribute to higher overall margins.'' American American, river, 30 mi (48 km) long, rising in N central Calif. in the Sierra Nevada and flowing SW into the Sacramento River at Sacramento. The discovery of gold at Sutter's Mill (see Sutter, John Augustus) along the river in 1848 led to the California gold rush of Technology is a San Diego-based electronics company specializing in the development, manufacture and marketing of proprietary consumer and electronic products. Current consumer products include the World's Smallest Radios, FM Sounds and AM Sounds. -0-
AMERICAN TECHNOLOGY CORP.
STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended Nine Months Ended
June 30, June 30,
1995 1994 1995 1994
Net sales $ 431,611 $ 271,298 $1,471,828 $ 490,553 Cost of goods sold 310,666 174,138 1,111,416 361,170 Gross profit 120,945 97,160 360,412 129,383 Operating expenses: Selling, general and administrative 125,679 126,895 479,786 352,037 Research and development 41,746 32,827 251,471 59,543 Total operating expenses 167,425 159,722 731,257 411,580 Loss from operations (46,480) (62,562) (370,845) (282,197) Other income (expenses) 68,459 (4,420) 68,847 286,243 Income (loss) before taxes on income 21,979 (66,982) (301,998) 4,046 Taxes on income -- -- -- -- Net income (loss) $ 21,979 $ (66,982) $(301,998) $ 4,046 Net income (loss) per share of common stock Nil (1 cent) (4 cents) Nil Average weighted number of common shares outstanding 7,291,228 7,291,228 7,291,228 7,291,228 CONTACT: American Technology Corp., 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. Robert Putnam, 619/679-2114 |
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