American Technology Corporation (ATC) (NASDAQ: ATCO), the innovator
and distributor of the Long Range Acoustic Device™ (LRAD®) product
line, today reported record fiscal Q1 revenues of $5.3 million and
a record quarterly profit of $1.8 million, or $0.06 per diluted
share, for its fiscal 2010 first quarter ended December 31, 2009.
"With the solid technology and product foundation we have
implemented, we believe these results are a harbinger of continued
business growth over the next several years," stated Tom Brown,
president and chief executive officer of American Technology
Corporation. "We are continuing to expand our market opportunities
in many diverse applications where our proprietary LRAD systems
have proven effective in communicating over distance to hail and
notify, determine intent, resolve uncertain situations, preserve
and control wildlife, and even save lives on both sides of the Long
Range Acoustic Device."
Revenues for fiscal Q1 2010 increased 114% over the $2.5 million
in revenues recorded in fiscal Q1 2009.
Gross profit for fiscal Q1 2010 was $3.1 million, or 57% of
revenues, compared to $1.1 million, or 46% of revenues, for the
quarter ended December 31, 2008. The increase in gross profit was
due to higher revenue in the quarter, increased absorption of our
fixed costs and decreased product cost resulting from improved
manufacturing efficiencies and savings from higher volume component
purchasing.
Operating expenses for fiscal Q1 2010 decreased by 14% to $1.8
million, compared to $2.0 million for the same period in the prior
year. Non-cash share-based compensation expense decreased by
$421,000, offset by an increase in commission expense of
$173,000.
Net income for fiscal Q1 2010 was $1.8 million or $0.06 per
diluted share, compared to a net loss of $881,000 or $(0.03) per
diluted share for the same period last year. Net income included
$597,000 in non-cash unrealized gain on the revaluation of
derivatives related to warrant instruments resulting from the
adoption of a new accounting pronouncement. On a non-GAAP basis,
excluding the cost of non-cash share-based compensation expense of
$151,000, and excluding the non-cash unrealized gain on derivative
revaluation related to warrants of $597,000, fiscal Q1 2010
resulted in non-GAAP net income of $1.4 million, compared to a
non-GAAP net loss of $313,000 in fiscal Q1 2009 after excluding
$568,000 of non-cash share-based expense.
Brown concluded, "While our quarterly results will remain
uneven, this fiscal year we anticipate a third consecutive year of
record revenue growth and our first profitable fiscal year."
About American Technology Corporation
American Technology Corporation is providing directed audio
solutions that place clear, highly intelligible sound exactly where
needed. ATC's Long Range Acoustic Device™ (LRAD®) and other
directed sound technologies comprise the core of an expanding
portfolio of products being used around the world in diverse
applications including, global military deployments, maritime
security, critical infrastructure and commercial security, border
and port security, law enforcement and emergency responder
communications, and wildlife preservation and control. For more
information about ATC and its directed sound products, please visit
the company's web site at www.atcsd.com.
Non-GAAP Financial Measure
In addition to disclosing financial measures prepared in
accordance with Generally Accepted Accounting Principles (GAAP),
this press release contains a non-GAAP financial measure: non-GAAP
net income (loss). The presentation of this financial information
is not intended to be considered in isolation or as a substitute
for, or superior to, the financial information prepared and
presented in accordance with GAAP. Non-GAAP net income (loss) in
this press release is defined as net income (loss) plus non-cash
share-based compensation expenses and less non-cash unrealized gain
on derivative revaluation.
The Company's management believes its non-GAAP financial measure
provides meaningful supplemental information allowing investors to
evaluate results that management uses internally and, with respect
to the derivative revaluation, for determining employee bonuses in
the current year. Because of varying available valuation
methodologies, subjective assumptions and the variety of award
types that companies can use to compute non-cash share-based
expense, management believes that providing a non-GAAP financial
measure excluding share-based expenses, even though a recurring
expense, allows investors to compare its results with those of
other companies. Management also believes the non-cash derivative
revaluation will not be a recurring item after the current warrants
expire in August 2010.
Safe Harbor statement under the Private Securities Litigation
Reform Act of 1995: Except for historical information contained
herein, the matters discussed are forward-looking statements 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. 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, 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 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. 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, 2009. 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
(000's omitted)
December 31,
2009 September 30,
(Unaudited) 2009
------------- -------------
ASSETS
Current assets:
Cash and cash equivalents $ 4,840 $ 5,103
Accounts receivable, net 2,415 1,463
Inventories, net 3,193 3,068
Prepaid expenses and other 281 194
------------- -------------
Total current assets 10,729 9,828
Equipment, net 192 231
Patents, net 835 897
Deposits 58 58
------------- -------------
Total assets $ 11,814 $ 11,014
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,187 $ 960
Accrued liabilities 1,361 2,010
------------- -------------
Total current liabilities 2,548 2,970
------------- -------------
Total stockholders' equity 9,266 8,044
------------- -------------
Total liabilities and stockholders' equity $ 11,814 $ 11,014
============= =============
American Technology Corporation
Condensed Statements of Operations
(000's omitted except share and per share amounts)
(Unaudited)
For the three months
ended
December 31,
----------------------
2009 2008
---------- ----------
Revenues $ 5,346 $ 2,493
Cost of revenues 2,287 1,351
---------- ----------
Gross profit 3,059 1,142
---------- ----------
Operating expenses:
Selling, general and administrative 1,198 1,587
Research and development 552 452
---------- ----------
Total operating expenses 1,750 2,039
---------- ----------
Gain (loss) from operations 1,309 (897)
Other income 596 16
---------- ----------
Net income (loss) before provision for income taxes 1,905 (881)
Provision for income taxes (86) -
---------- ----------
Net income (loss) $ 1,819 $ (881)
========== ==========
Net income (loss) per common share - basic and
diluted $ 0.06 $ (0.03)
========== ==========
Weighted average common shares outstanding
Basic 30,552,498 30,535,207
========== ==========
Diluted 31,130,400 30,535,207
========== ==========
FOR FURTHER INFORMATION CONTACT: Robert Putnam Investor
Relations (858) 676-0519 Email Contact
American Technology (NASDAQ:ATCO)
Historical Stock Chart
From Apr 2024 to May 2024
American Technology (NASDAQ:ATCO)
Historical Stock Chart
From May 2023 to May 2024
