QSound Labs Reports Third Quarter Results for 2004.CALGARY Calgary (kăl`gərē), city (1991 pop. 710,677), S Alta., Canada, at the confluence of the Bow and Elbow rivers. The largest city in Alberta and the fastest-growing major city in Canada, Calgary is a corporate, transportation, and financial , Alberta Alberta (ălbûr`tə), province (2001 pop. 2,974,807), 255,285 sq mi (661,188 sq km), including 6,485 sq mi (16,796 sq km) of water surface, W Canada. -- QSound Labs QSound Labs is primarily a developer and provider of audio enhancement technologies for entertainment and communications devices and software. The company is best known as a pioneer of 3D audio effects, beginning with speaker-targeted positional 3D technology applied to arcade , Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :QSND), a leading developer of audio and voice software solutions, reported revenues for the three months ended September September: see month. 30, 2004 of $600,000 as compared to $466,000 for the same period in FY2003. The 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. for the quarter was $(174,000) or $(0.02) per share as compared to an operating loss of $(383,000) or $(0.05) per share for the same period last year. After allowing for non-cash items such as depreciation, and foreign exchange gains, the net loss for the period was $(293,000) or $(0.03) per share as compared to $(464,000) or $(0.06) per share for the same period in FY2003. Revenues for the nine months ended September 30, 2004 were $1,719,000 compared to $1,680,000 in FY2003. The operating loss was $(883,000) or $(0.11) per share in FY2004 and the operating loss was $(606,000) or $(0.09) per share in FY2003. Net loss for this period was $(1,216,000) or $(0.16) per share as compared to $(703,000) or $(0.10) per share in FY2003. The Company reported a working capital surplus of $1,767,000 at September 30, 2004 of which cash comprised $1,503,000. The Company continued the trend of improving its quarterly operating cash flow Operating cash flow Earnings before depreciation minus taxes. Measures the cash generated from operations, not counting capital spending or working capital requirements. , with a net operating cash outflow for the third quarter of $(62,000) compared to $(321,000) in the second quarter. "During the quarter, we continued to make progress in penetrating penetrating breaching the tissues of the body. the mobile market with our microQ product suite," stated David Gallagher
David Lee Gallagher (born February 9, 1985) is an American actor. He is perhaps best known for his role of Simon Camden on the television series 7th Heaven. , President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of QSound Labs. "The Company added two more design wins to the previously announced microQ design wins with Broadcom Broadcom Corporation is an American supplier of integrated circuits (ICs) for broadband communications. Founded in 1991 by Henry Samueli (chairman and CTO) and Henry Nicholas, it became a public company in 1998 and now employs over 5,000 people worldwide. and Qualcomm (QUALCOMM Incorporated, San Diego, CA, www.qualcomm.com) A wireless communications and software company founded in 1985 by Dr. Irwin Jacobs. Originally involved in satellite tracking and fleet management, QUALCOMM has become widely known for its CDMA technology used in cellphones and . Specifically, the Company completed license agreements with Vodafone Vodafone Group Plc is a mobile network operator headquartered in Newbury, Berkshire, England, UK. It is the largest mobile telecommunications network company in the world by turnover and has a market value of about £84.7 billion (July 2007). for the inclusion of our 3D positional audio solution in their VFX VFX Visual Effects VFX Visual Fixation VFX Virtual Effects reference design and, subsequent to the quarter ending, with PacketVideo for both the ringtone The audible sound made by a telephone to announce that a call is coming in. The traditional ringtone was in the 440-480 Hz range, but as cellphone usage grew, it became obvious that ringtone differentiation would become important. player and 3D positional audio components of microQ. These agreements reflect our strategy of addressing multiple distribution channels; namely chip manufacturers, OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and handset The part of the telephone that contains the speaker and the microphone. On a desktop phone, the part you hold in your hand is the handset. On a cellphone, the entire phone is the handset. See multihandset cordless and headset. manufacturers and video software partners." "With all of these agreements, the target for product delivery to the market place is throughout 2005. At this stage, management expects that recurring re·cur intr.v. re·curred, re·cur·ring, re·curs 1. To happen, come up, or show up again or repeatedly. 2. To return to one's attention or memory. 3. To return in thought or discourse. revenues from some of these contracts will commence in early 2005. The mobile market is in the early stages of multimedia adoption and usage. Advanced markets in Japan and Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. indicate that consumers are willing to pay for multimedia data services. Industry analysts are predicting the same consumer pattern to occur in the rest of the world thus providing a growth market for several years to come. Management believes the Company is currently well situated to take advantage of this opportunity. Competition will, of course, be fierce and it is critical that the Company continues to capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. its first to market advantage by closing more license agreements over the next few months." "Revenues from our PC audio software solution, QVE QVE Quintessential Vocal Ensemble (St. John's, Newfoundland, Canada) QVE Quality Value Engineering QVE Quasi-Vibrational Energy QVE Quinta Vale das Escadinhas (Silgueiros, Portugal wine producer) , remained flat. The Company has continued to seek out new licensees to complement our main licensee licensee n. a person given a license by government or under private agreement. (See: license, licensor) LICENSEE. One to whom a license has been given. 1 M. Q. & S. 699 n. , Philips (company) Philips - A Dutch multinational electronics company. It produces washing machines, consumer electronics, integrated circuits and light bulbs. Together with Sony they set the Compact Disc standard, especially Green Book CD-ROM. Sound Solutions." "VoIP product sales were also flat and will continue as such until new products with a wider application, are available. This is still expected to occur in early FY2005." This release contains 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 the Private Securities 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. Act of 1995 concerning, among other things, expectation of revenues from customers in the mobile device and IP telephony The two-way transmission of voice over a packet-switched IP network, which is part of the TCP/IP protocol suite. The terms "IP telephony" and "voice over IP" (VoIP) are synonymous. markets. Investors are cautioned that such forward-looking statements involve risk and uncertainties, which could cause actual results, performance or achievements of QSound, or industry results to differ materially from those reflected in the forward-looking statements. Such risks and uncertainties include, but are not limited to, risks associated with loss of relationships with companies that do business with QSound, successful product development, introduction and acceptance, QSound's ability to carry out its business strategy and marketing plans, dependence on intellectual property, rapid technological change, competition, general economic and business conditions, continued growth of multimedia usage in the mobile devices market and other risks detailed from time to time in QSound's periodic reports filed with the Securities and Exchange Commission. Forward-looking statements are based on the current expectations, projections and opinions of QSound's management, and QSound undertakes no obligation to publicly release the results of any revisions to such forward-looking statements which may be made, for example to reflect events or 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 after 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" or to reflect the occurrence of unanticipated events.
QSound Labs, Inc.
Consolidated Balance Sheets
As at September 30, 2004 and December 31, 2003
(Expressed in United States dollars, prepared using US GAAP)
September 30, December 31,
2004 2003
(unaudited)
ASSETS
Current assets:
Cash and cash equivalents $ 1,502,746 $ 2,061,093
Accounts receivable 449,466 221,194
Inventory 99,656 107,377
Deposits and prepaid expenses 75,839 82,921
--------------------------------------------------------------------
2,127,707 2,472,585
Capital assets 1,349,070 1,114,992
Intangible assets 176,083 189,002
--------------------------------------------------------------------
$ 3,652,860 $ 3,776,579
--------------------------------------------------------------------
--------------------------------------------------------------------
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities:
Accounts payable and
accrued liabilities $ 229,178 $ 233,198
Deferred revenue 132,160 96,547
--------------------------------------------------------------------
361,338 329,745
--------------------------------------------------------------------
Shareholders' equity:
Share capital
(7,885,824 common shares) 45,339,772 44,279,378
Contributed surplus 1,114,316 1,114,316
Deficit (43,162,566) (41,946,860)
--------------------------------------------------------------------
3,291,522 3,446,834
--------------------------------------------------------------------
$ 3,652,860 $ 3,776,579
--------------------------------------------------------------------
--------------------------------------------------------------------
QSound Labs, Inc.
Consolidated Statements of Operations and Deficit
For the periods ended September 30, 2004 and 2003
(Expressed in United States dollars, prepared using US GAAP)
For three For three For nine For nine
months months months months
ended ended ended ended
September September September September
30, 2004 30, 2003 30, 2004 30, 2003
(unaudited) (unaudited) (unaudited) (unaudited)
REVENUE
Royalties and
license fees $ 383,773 $ 114,879 $ 977,794 $ 691,287
Product sales 216,504 350,788 741,169 988,538
--------------------------------------------------------------------
600,277 465,667 1,718,963 1,679,825
Cost of product
sales 93,320 136,749 380,677 283,762
--------------------------------------------------------------------
506,957 328,918 1,338,286 1,396,063
EXPENSES:
Marketing 261,980 287,549 975,910 866,796
Operations 31,480 45,667 169,720 121,921
Product
engineering 219,691 244,753 680,254 598,703
Administration 167,717 133,723 395,521 414,190
--------------------------------------------------------------------
680,868 711,692 2,221,405 2,001,610
--------------------------------------------------------------------
OPERATING (LOSS)
PROFIT (173,911) (382,774) (883,119) (605,547)
OTHER ITEMS
Depreciation and
amortization (101,433) (74,904) (311,085) (237,628)
Interest and
other income 2,843 11,031 7,068 34,153
Gain (loss) on
sale of capital
assets (13,236) 179 (13,236) (1,729)
Other (6,887) (17,048) (15,334) 108,193
--------------------------------------------------------------------
(118,713) (80,742) (332,587) (97,011)
--------------------------------------------------------------------
NET (LOSS) INCOME
FOR PERIOD (292,624) (463,516) (1,215,706) (702,558)
DEFICIT BEGINNING
OF PERIOD (42,869,942) (38,511,091) (41,946,860) (38,272,049)
--------------------------------------------------------------------
DEFICIT END OF
PERIOD $(43,162,566)$(38,974,607)$(43,162,566)$(38,974,607)
--------------------------------------------------------------------
--------------------------------------------------------------------
INCOME PER
COMMON SHARE $ (0.03)$ (0.06)$ (0.16)$ (0.10)
--------------------------------------------------------------------
--------------------------------------------------------------------
QSound Labs, Inc.
Consolidated Statements of Cash Flows
For the periods ended September 30, 2004 and 2003
(Expressed in United States dollars, prepared using US GAAP)
For three For three For nine For nine
months months months months
ended ended ended ended
September September September September
30, 2004 30, 2003 30, 2004 30, 2003
(unaudited) (unaudited) (unaudited) (unaudited)
Cash provided by
(used in)
OPERATIONS
(Loss) Income for
the period $ (292,624) $ (463,516) $(1,215,706) $ (702,558)
Items not
requiring
(providing) cash:
Depreciation and
amortization 101,433 74,904 311,085 237,628
Provision for
inventory - - 60,000 -
Compensation cost
of options issued
to non-employees - - - 5,864
Loss (gain) on
sale of capital
assets 13,236 - 13,236 1,908
Changes in
working capital
balances 116,132 (154,109) (241,876) 394,536
--------------------------------------------------------------------
(61,823) (542,721) (1,073,261) (62,622)
FINANCING
Issuance of
common shares,
net 68,099 1,645 1,022,775 11,642
--------------------------------------------------------------------
68,099 1,645 1,022,775 11,642
INVESTMENTS
Purchase of
capital assets (227,704) (40,989) (468,792) (51,398)
Purchase of
intangible assets (29,597) (11,902) (39,261) (36,179)
Proceeds from
sale of capital
assets 140 179 192 5,801
--------------------------------------------------------------------
(257,161) (52,712) (507,861) (81,776)
--------------------------------------------------------------------
Increase
(decrease)
in cash (250,885) (593,788) (558,347) (132,756)
Cash and cash
equivalents
beginning of
period 1,753,631 3,082,237 2,061,093 2,621,205
--------------------------------------------------------------------
Cash and cash
equivalents end
of period $ 1,502,746 $ 2,488,449 $ 1,502,746 $ 2,488,449
--------------------------------------------------------------------
--------------------------------------------------------------------
|
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion