SRS Labs (NASDAQ:SRSL), a leading supplier of surround sound,
audio, and voice technologies, announced today consolidated net
income for the second quarter ended June 30, 2006 increased to $929
thousand or $.06 per diluted shared, compared to $514 thousand or
$.03 per diluted share for the same period in the prior year. The
Company also reported that licensing revenue from continuing
operations for the second quarter ending June 30, 2006, increased
by 20.3 percent to $4.3 million from $3.5 million for the same
period in fiscal 2005. The company reported net income from
continuing operations for the second quarter of $406 thousand, or
$.02 per diluted share, compared to net income of $435 thousand, or
$0.03 per diluted share, for the same period in the prior year.
Revenues in the home entertainment and automotive segments
increased by 39% and 110%, respectively. Total operating expenses
during the second quarter from continuing operations increased from
$3.0 million in 2005 to $3.9 million in 2006. Included in this
increase is $344 thousand related to stock based compensation
expense recorded under FAS 123R. Additional increases in expenses
were noted in sales and marketing due to increased sales personnel,
travel expenses, commissions on higher sales and expanded marketing
activities including increased personnel in North America. General
and Administrative expenses decreased due to lower professional
fees. On June 30, 2006, the Company sold its interest in the
CHS/SRS LLC joint venture to Coming Home Studios, LLC, which
resulted in a gain on sale of $371 thousand. Such amount is
included in discontinued operations. In February 2006, SRS
announced its intention to sell its Hong Kong-based semiconductor
business, Valence Technology Limited. On July 14, 2006, the Company
entered into a definitive Sale and Purchase Agreement ("Purchase
Agreement") to sell Valence to Noblehigh Enterprises Inc.
("Noblehigh"). Noblehigh is owned by Willas Array Electronics
(Holding) Limited, as well as certain members of management of
Valence. The company reported net income from Valence of $151
thousand for the quarter ended June 30, 2006 which is included in
discontinued operations, compared to net income from Valence of $65
thousand for the same period in the prior year. Consolidated net
income for the six months ended June 30, 2006 increased to $1,092
thousand or $.07 per diluted share compared to $735 thousand or
$.05 per diluted share for the same period in the prior year.
Licensing revenue from continuing operations for the six months
ended June 30, 2006, increased by 26.3 percent to $8.6 million from
$6.8 million for the same period in fiscal 2005. "I am pleased with
our 2nd Quarter performance. We achieved the highest licensing
revenue for any 2nd quarter in our Company's history. Combined with
our record Q1 revenue, we have made the first 6 months of 2006 the
best first half in sales for SRS licensing business. Our sales
momentum continues to demonstrate the benefits of our strategy. By
having multiple segments focus, we are able to deliver good results
despite fluctuations in select market segments. As I have noted
previously, the consumer electronics market is characterized by
rapid product changes, short product life cycles and fierce price
competitions. By strategizing our growth, leveraging on five
distinct segments of the market, we are better able to minimize the
risks associated with more concentrated segment focus. Our segment
growth continue to do well in Home entertainment segment,
Automobile segment and held its pace in the Cell phone segment
while the dominance of Apple iPod continues to impact the MP3
market," said Thomas C.K. Yuen, Chairman and CEO of SRS Labs, Inc.
Conference Call SRS will host a conference call and webcast at 2
p.m. Pacific time today (5 p.m. Eastern time) to review its fiscal
2006 second quarter results. The dial-in number for the call is
866-881-1333, ask for "SRS Labs Q2 Results Conference Call" and
enter pass code 943509. An audio replay of the conference call will
be available until August 9 at 6 p.m. Pacific time via telephone.
The audio replay dial-in number is 888-211-2648. The replay pass
code is 943509. The call will also be webcast live over the
Internet. Simply log-on to
http://phx.corporate-ir.net/playerlink.zhtml?c=97327&s=wm&e=1358565.
The webcast will be archived on the company's website for 60 days
following the call. About SRS Labs, Inc. SRS Labs is a recognized
leader in the advancement of audio and voice technology. The
company works with the world's top manufacturers to provide a
richer entertainment experience through patented sound techniques.
SRS Labs' technologies can be heard through products ranging from
televisions, LCD and plasma monitors, cell phones, MP3 players, car
audio systems, and notebook and desktop computers. The company also
offers hardware and software tools to professionals and consumers
for the creation, production and broadcast of content featuring SRS
Labs' technologies. Based in Santa Ana, Calif., the company also
has licensing representation in Hong Kong, Taiwan, Japan, China,
Europe, and Korea. For more information about SRS Labs, Inc. please
visit www.srslabs.com. The information on the aforementioned
website is not incorporated by reference into this press release.
Except for historical information contained in this release,
statements in this release, including those of Mr. Yuen are
forward-looking statements and projections (which include
statements concerning plans and objectives of management for future
operations) that are based on management's belief, as well as
assumptions made by, and information currently available to
management. While the company believes that its expectations are
based upon reasonable assumptions, there can be no assurances that
the company's goals and strategy will be realized. Numerous
factors, including risks and uncertainties, may affect the
company's actual results and may cause results to differ materially
from those expressed in forward-looking statements made by or on
behalf of the company. Some of these factors include uncertainties
related to the sale of Valence Technology, the general market
conditions concerning the semiconductor business, the acceptance of
new SRS Labs' products and technologies, the impact of competitive
products and pricing, the timely development and release of
technologies by the company, general business and economic
conditions, especially in Asia, and other factors detailed in the
company's Form 10-K and other periodic reports filed with the SEC.
SRS Labs specifically disclaims any obligation to update or revise
any forward-looking statement whether as a result of new
information, future developments or otherwise. -0- *T SRS LABS,
INC. CONDENSED CONSOLIDATED BALANCE SHEETS June 30, December 31,
2006 2005 ------------ ------------ (unaudited) ASSETS Current
Assets Cash and cash equivalents $12,071,951 $ 8,752,339 Accounts
receivable, net 1,453,597 1,886,780 Inventories, net 59,518 80,421
Prepaid expenses and other current assets 452,158 522,426
Investments available for sale 11,968,615 -- Assets held for sale
2,264,847 1,859,127 ------------ ------------ Total Current Assets
28,270,686 13,101,093 Investments available for sale 5,099,589
17,077,170 Furniture, fixtures and equipment, net 486,460 425,288
Intangible assets, net 2,108,121 2,015,605 Deferred income taxes
386,412 380,386 Long term assets held for sale 2,113,613 2,065,123
------------ ------------ Total Assets $38,464,881 $35,064,665
============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities Accounts payable $ 898,905 $ 741,811 Accrued
liabilities 852,956 801,898 Deferred revenue 110,254 537,636
Liabilities related to assets held for sale 1,700,706 2,170,701
------------ ------------ Total Current Liabilities 3,562,821
4,252,046 Commitments and contingencies and subsequent events
Stockholders' Equity Preferred stock--$.001 par value; 2,000,000
shares authorized; no shares issued or outstanding -- -- Common
stock--$.001 par value; 56,000,000 shares authorized; 15,584,819
and 14,953,690 shares issued; and 14,910,721 and 14,279,592 shares
outstanding at June 30, 2006 and December 31, 2005, respectively
15,586 14,955 Additional paid-in capital 66,581,360 63,574,518
Accumulated other comprehensive loss (506,046) (496,021)
Accumulated deficit (28,185,395) (29,277,388) Treasury stock at
cost, 674,098 shares at June 30, 2006 and December 31, 2005
(3,003,445) (3,003,445) ------------ ------------ Total
Stockholders' Equity 34,902,060 30,812,619 ------------
------------ Total Liabilities and Stockholders' Equity $38,464,881
$35,064,665 ============ ============ SRS LABS, INC. CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Three Months
Ended Six Months Ended June 30, June 30, -----------------------
----------------------- 2006 2005 2006 2005 ----------- -----------
----------- ----------- Revenues $4,259,839 $3,539,977 $8,595,507
$6,804,072 Cost of sales 35,293 94,838 83,105 151,183 -----------
----------- ----------- ----------- Gross margin 4,224,546
3,445,139 8,512,402 6,652,889 Operating expenses: Sales and
marketing 1,885,416 1,026,477 3,750,785 2,208,924 Research and
development 631,739 547,787 1,286,028 1,123,992 General and
administrative 1,357,789 1,427,501 2,994,997 2,700,352 -----------
----------- ----------- ----------- Total operating expenses
3,874,944 3,001,765 8,031,810 6,033,268 ----------- -----------
----------- ----------- Income from continuing operations 349,602
443,374 480,592 619,621 Other income, net 224,005 160,341 403,718
309,611 ----------- ----------- ----------- ----------- Income from
continuing operations before income tax expense 573,607 603,715
884,310 929,232 Income tax expense 167,745 168,506 327,168 287,530
----------- ----------- ----------- ----------- Income from
continuing operations 405,862 435,209 557,142 641,702 Discontinued
operations: Income from discontinued operations before income tax
expense 151,876 79,088 194,252 99,233 Gain on disposal 371,295 --
371,295 -- Income tax (benefit) expense (385) 563 30,696 5,741
----------- ----------- ----------- ----------- Income from
discontinued operations 523,556 78,525 534,851 93,492 -----------
----------- ----------- ----------- Net income $ 929,418 $ 513,734
$1,091,993 $ 735,194 =========== =========== ===========
=========== Income from continuing operations per common share:
Basic $ 0.03 $ 0.03 $ 0.04 $ 0.05 Diluted $ 0.02 $ 0.03 $ 0.03 $
0.04 Income from discontinued operations per common share: Basic $
0.04 $ 0.01 $ 0.04 $ 0.01 Diluted $ 0.03 $ 0.01 $ 0.03 $ 0.01 Net
income per common share: Basic $ 0.06 $ 0.04 $ 0.08 $ 0.05 Diluted
$ 0.06 $ 0.03 $ 0.07 $ 0.05 Weighted average shares used in the
calculation of net income per common share: Basic 14,622,210
14,076,866 14,523,459 14,043,269 Diluted 16,334,105 14,881,495
16,206,277 14,950,693 *T
Srs Labs (NASDAQ:SRSL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Srs Labs (NASDAQ:SRSL)
Historical Stock Chart
From Jul 2023 to Jul 2024