LRAD® Corporation Reports Record Fiscal Third Quarter and Nine-Month Revenues
August 12 2019 - 4:05PM
LRAD Corporation (NASDAQ: LRAD), a critical
communications company, today announced financial results for its
fiscal third quarter and first nine months ended June 30, 2019.
Fiscal Third Quarter 2019 Financial
Results
- Revenues were $8.9 million in the
third quarter of fiscal 2019, the highest in any fiscal third
quarter in the Company’s history. Third quarter fiscal 2018
revenues were $7.5 million.
- Gross margin was 51.9% for the
third quarter of fiscal 2019, compared with 49.2% in the same
period last year.
- Net income was $638,000, or $0.02
per diluted share, in the third quarter of fiscal 2019. This
represents an increase of $718,000 over the net loss of $80,000, or
$ (0.00) per share, for the third quarter of fiscal 2018.
“A 66% increase in public safety revenues over
fiscal Q3 2018 and strong defense shipments fueled record fiscal
third quarter revenue results,” said Richard S. Danforth, Chief
Executive Officer of LRAD Corporation. “Bookings for the quarter
were $10.4 million, an increase of more than $3 million from the
third quarter of fiscal 2018.”
First Nine Months Financial
Results
- Revenues were $29.2 million in the
first nine months of fiscal 2019, an increase of 27% when compared
with $23.0 million for the first nine months of fiscal 2018.
- Gross margin was 50.9% for the
first nine months of fiscal 2019, compared with 50.8% in the same
period last year.
- Net income was $2.9 million, or
$0.09 per diluted share, in the first nine months of fiscal 2019,
an increase of $4.2 million when compared with a net loss of $1.3
million, or $(0.04) per share, for the first nine months of fiscal
2018.
- Cash and cash equivalents totaled
$11.3 million at June 30, 2019, up from $11.1 million at September
30, 2018.
“The $29.2 million in revenues is a Company
record for any first nine-month fiscal year period and surpasses
all previous total fiscal year revenue results,” continued Mr.
Danforth. “Bookings for the fiscal first nine-months were strong at
$20.9 million, up $1.4 million from the same period a year
ago.”
Select Fiscal Third Quarter 2019
Operating and Business Highlights
- Received a $4.75 million maintenance agreement for AHDs
deployed by the Indian Navy
- Announced $1.7 million in defense and homeland security
orders
- Received $850,000 in international public safety notification
and wildlife preservation orders
- Announced a $500,000 follow-on Canadian Army order
- Presented a Federal Emergency Management Agency (FEMA) webinar
for emergency managers and demonstrated LRAD’s compatibility with
FEMA’s Integrated Public Alert and Warning System (IPAWS)
- Installed LRAD public safety notification systems packaged with
Genasys software in Mill Valley, CA
“For the fiscal 4th quarter, robust bookings and
backlog have the Company on track for an increase in revenues over
fiscal Q4 2018,” Mr. Danforth concluded. “Growth in public safety,
emergency warning mass notification and defense orders is expected
to drive further increases in bookings and backlog, positioning the
Company for continued revenue growth through fiscal 2020 and
beyond.”
We include in this press release Non-GAAP
operational metric of bookings, which we believe provides helpful
information to investors with respect to evaluating the Company’s
performance. We consider bookings a leading indicator of future
revenues and use this metric to support production planning.
Bookings is an internal, operational metric that measures the total
dollar value of customer purchase orders executed in a period,
regardless of the timing of the related revenue recognition.
Webcast and Conference Call
DetailsManagement will host a conference call to discuss
fiscal third quarter 2019 financial results this afternoon at 4:30
p.m. Eastern Time (1:30 p.m. Pacific Time). To access the
conference call, dial toll-free (888) 390-3967, or international at
(862) 298-0702. A webcast will also be available at the following
link:https://www.webcaster4.com/Webcast/Page/1375/31183.
Questions to management may be submitted before
or during the call by emailing them to: ir@LRAD.com.
A replay of the call will be available
approximately four hours after the conference call and remain
available for 90 days in the Investor section of the Company’s
website at
https://www.lradx.com/investors/events-presentations/.
About LRAD CorporationThe
Company's proprietary Long Range Acoustic Devices® and advanced
Genasys™ mass notification systems and mobile alert solutions are
designed to enable users to safely hail and warn, notify and
direct, prevent misunderstandings, determine intent, establish
large safety zones, resolve uncertain situations, and protect
lives.
LRAD systems are in service in 72 countries
around the world in diverse applications, including public safety,
mass notification, defense, law enforcement, homeland and border
security, critical infrastructure protection, fire rescue, incident
management, maritime and port security, and wildlife control and
preservation. For more information, visit LRAD.com.
Forward-Looking
StatementsExcept for historical information contained
herein, the matters discussed are forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934.
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. These risks
and uncertainties are 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. Future results may differ materially from
our current expectations. For more information regarding other
potential risks and uncertainties, see the “Risk Factors” section
of the Company’s Form 10-K for the fiscal year ended September 30,
2018. LRAD Corporation disclaims any intent or obligation to update
those forward-looking statements, except as otherwise specifically
stated.
Investor Relations ContactsJim
Fanucchi and Satya ChillaraDarrow Associates, Inc.ir@lrad.com
|
LRAD Corporation and Subsidiary |
Condensed Consolidated Balance Sheets |
(000's omitted) |
|
|
June 30, 2019 |
|
September 30, 2018 |
|
(unaudited) |
|
|
|
|
|
|
ASSETS |
|
|
|
Current
assets: |
|
|
|
Cash and cash equivalents |
$ |
11,290 |
|
$ |
11,063 |
Short-term marketable securities |
2,978 |
|
3,592 |
Restricted cash |
370 |
|
404 |
Accounts receivable, net |
6,814 |
|
2,786 |
Inventories, net |
6,413 |
|
6,734 |
Prepaid expenses and other |
759 |
|
3,091 |
Total current
assets |
28,624 |
|
27,670 |
Long-term marketable
securities |
1,500 |
|
1,201 |
Long-term restricted
cash |
435 |
|
340 |
Deferred tax assets,
net |
5,282 |
|
5,957 |
Property and
equipment, net |
2,358 |
|
2,449 |
Goodwill |
2,396 |
|
2,446 |
Intangible assets,
net |
1,297 |
|
1,557 |
Prepaid expenses and
other - noncurrent |
124 |
|
241 |
Total
assets |
$ |
42,016 |
|
$ |
41,861 |
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY |
|
|
|
Current
liabilities: |
|
|
|
Accounts payable |
$ |
813 |
|
$ |
3,083 |
Accrued liabilities |
3,635 |
|
3,200 |
Notes payable, current portion |
291 |
|
297 |
Total current
liabilities |
4,739 |
|
6,580 |
|
|
|
|
Notes payable, less current
portion |
34 |
|
53 |
Other liabilities,
noncurrent |
2,511 |
|
1,739 |
Total
liabilities |
7,284 |
|
8,372 |
|
|
|
|
Total stockholders'
equity |
34,732 |
|
33,489 |
Total liabilities and
stockholders' equity |
$ |
42,016 |
|
$ |
41,861 |
|
|
|
|
|
LRAD Corporation and Subsidiary |
Condensed Consolidated Statements of
Operations |
(000's omitted except share and per share
amounts) |
(Unaudited) |
|
|
Three months ended |
|
Nine months ended |
|
June 30, |
|
June 30, |
|
2019 |
|
2018 |
|
2019 |
|
2018 |
|
|
|
|
|
|
|
|
Revenues |
$ |
8,864 |
|
$ |
7,514 |
|
$ |
29,233 |
|
$ |
23,011 |
Cost of
revenues |
4,262 |
|
3,815 |
|
14,351 |
|
11,319 |
Gross
profit |
4,602 |
|
3,699 |
|
14,882 |
|
11,692 |
|
|
|
|
|
|
|
|
Operating
expenses: |
|
|
|
|
|
|
|
Selling, general and administrative |
2,713 |
|
2,904 |
|
7,939 |
|
7,610 |
Research and development |
1,203 |
|
973 |
|
3,531 |
|
2,665 |
Total operating expenses |
3,916 |
|
3,877 |
|
11,470 |
|
10,275 |
|
|
|
|
|
|
|
|
Income from operations |
686 |
|
(178) |
|
3,412 |
|
1,417 |
Other income and expense,
net |
70 |
|
24 |
|
126 |
|
74 |
Income before income
taxes |
756 |
|
(154) |
|
3,538 |
|
1,491 |
Income tax expense |
118 |
|
(74) |
|
675 |
|
2,794 |
Net income
(loss) |
$ |
638 |
|
$ |
(80) |
|
$ |
2,863 |
|
$ |
(1,303) |
|
|
|
|
|
|
|
|
Net income (loss) per
common share - basic and diluted |
$ |
0.02 |
|
$ |
(0.00) |
|
$ |
0.09 |
|
$ |
(0.04) |
Weighted average
common shares outstanding: |
|
|
|
|
|
|
|
Basic |
32,575,118 |
|
32,306,207 |
|
32,684,311 |
|
32,314,038 |
Diluted |
33,372,777 |
|
32,306,207 |
|
33,341,057 |
|
32,314,038 |
|
|
|
|
|
|
|
|
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