SANTA ANA, Calif., May 6 /PRNewswire-FirstCall/ -- SRS Labs, Inc.
(Nasdaq: SRSL), the industry leader in surround sound, audio and
voice technologies, reported financial results for the first
quarter ended March 31, 2010.
(Logo:
http://www.newscom.com/cgi-bin/prnh/20070322/LATH036LOGO)
Revenues in the first quarter 2010 increased 47% to a record
$8.4 million from $5.7 million in the same period a year ago. The
increase was primarily attributable to increased revenues in the
home entertainment and personal computer markets, as well as,
recoveries of $649,000 of previously
under-reported royalties.
Operating expenses in the first quarter increased 29% to
$6.9 million from $5.3 million in the same quarter a year ago. The
increase was primarily attributable to the continued investment in
additional sales, marketing and engineering infrastructure, higher
bonus and profit sharing and increased participation and promotion
at several trade shows.
Net income in the first quarter increased nearly threefold to
$1.5 million or $0.10 per diluted share, an improvement from a
net income of $386,000 or
$0.03 per diluted share in the first
quarter of 2009.
Quarter-end cash and cash equivalents, and short-term and
long-term investments totaled $41.8
million as of March 31, 2010,
as compared to $41.5 million at the
end of the prior quarter.
Management Commentary
"We are pleased with our record Q1 results which benefited
directly from our prior and ongoing strategic investments.
Moreover, revenues contributing to this record quarter were
derived from our TV, PC and Mobile Phone segments all three of
which parallel the consumer expectations for consistent, compelling
audio and video content across the 3-screens. In addition, with
consumers beginning to welcome 3D TVs to their living rooms, the
desire for a complete 3D experience is expected to fuel demand for
3D audio technologies such as our newly introduced CircleCinema
3D across all segments," said Thomas
C.K. Yuen, President and CEO of SRS Labs, Inc. "The current
and expected robust sales growth of CE products attributable to the
activities driven by these consumer trends bodes well with our
leading revenue segments and validates our revenue growth
expectation."
Conference Call
SRS Labs will hold a conference call later today (May 6, 2010) to discuss these first quarter 2010
financial results. Chairman and CEO Thomas
C.K. Yuen and CFO Ulrich
Gottschling will host the call starting at 5:00 p.m. Eastern time. A question and answer
session will follow management's presentation.
Dial-In Number: 877-353-2262
Conference ID#: 68340415
Please call the conference telephone number 5-10 minutes prior
to the start time. An operator will register your name and
organization and instruct you to wait until the call begins. If you
have any difficulty connecting with the conference call, please
contact the Liolios Group at 949-574-3860.
Investors may also listen to the conference call live online via
a link available on the SRS Labs investor relations home page at
www.srslabs.com.
The website will host a replay of the call available after
8:00 p.m. Eastern time. Investors may
also listen to the replay by dialing 800-642-1687 and entering
conference ID#: 68340415, available until May 20, 2010.
About SRS Labs, Inc.
Founded in 1993, SRS Labs is the industry leader in audio signal
processing for consumer electronics. Beginning with the audio
technologies originally developed at Hughes Aircraft, SRS Labs
holds over 150 worldwide patents and is recognized by the industry
as the foremost authority in research and application of audio post
processing technologies based on the human auditory principles.
Through partnerships with leading global CE companies,
semiconductor manufacturers and software partners, SRS is
recognized as the de facto standard in audio enhancement, surround
sound, volume leveling and voice processing technologies. SRS
solutions have been included in over one billion electronic
products sold worldwide including flat panel HDTVs, STBs, mobile
phones, portable media devices, PCs and automotive entertainment.
SRS Labs supports its partners around the globe with a network of
offices in regions including the U.S., China, Europe, Japan, Korea and Taiwan. For more information, visit
www.srslabs.com. Visit SRS Labs' blog at
http://soundingoff.srslabs.com, on Facebook at
www.facebook.com/srslabs or on Twitter at
www.twitter.com/srslabs.
Safe Harbor Statement
This press release includes forward-looking statements that are
based on our current expectations, estimates and projections about
SRS Labs, Inc., management's beliefs and certain assumptions made
by us, and events beyond our control, all of which are subject to
change. Such forward-looking statements include, but are not
limited to, statements relating to our customers' expectations, and
our future growth opportunities, competitive position, expansion
and investment plans, and operating results and profitability.
Forward-looking statements can often be identified by words such as
"expects," "anticipates," "intends," "plans," "predicts,"
"believes," "seeks," "estimates," "may," "will," "should," "would,"
"could," "likely," "potential," "continue," similar expressions,
and variations or negatives of these words. These forward-looking
statements are not guarantees of future results or the commitments
made by us herein, and they are subject to risks, uncertainties and
assumptions that could cause actual results to differ materially
and adversely from those expressed in any forward-looking
statement. The risks and uncertainties referred to above include,
but are not limited to, the loss of any significant customer; the
acceptance of new SRS Labs products and technologies; our ability
to increase our brand awareness and enter into new or expanded
license arrangements; the impact of competitive products and
pricing; general economic and business conditions that may
adversely impact sales of consumer products incorporating our
technologies or that otherwise may impact our operating results and
future performance; the timely development and release of
technologies by the Company; and such other factors described in
our filings with the Securities and Exchange Commission. The
forward-looking statements in this press release speak only as of
the date they are made. We do not undertake any obligation to
revise or update publicly any forward-looking statement for any
reason.
Company
Contacts:
|
|
Ulrich
Gottschling
|
|
Chief Financial
Officer
|
|
SRS Labs,
Inc.
|
|
Tel
949-442-5596
|
|
ir@srslabs.com
|
|
|
|
Matt
Glover
|
|
Investor
Relations
|
|
Liolios Group,
Inc.
|
|
Tel
949-574-3860
|
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info@liolios.com
|
|
|
SRS LABS, INC. AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
March 31,
2010
|
|
December 31,
2009
|
|
|
ASSETS
|
|
(Unaudited)
|
|
|
|
|
Current Assets
|
|
|
|
|
|
|
Cash
and cash equivalents
|
|
$
21,430,207
|
|
$
27,988,164
|
|
|
Accounts receivable, net
|
|
1,034,843
|
|
179,114
|
|
|
Prepaid expenses and other current
assets
|
|
1,082,615
|
|
1,147,151
|
|
|
Short-term investments
|
|
12,284,000
|
|
12,963,000
|
|
|
Total Current Assets
|
|
35,831,665
|
|
42,277,429
|
|
|
|
|
|
|
|
|
|
Long-term investments
|
|
8,044,000
|
|
538,000
|
|
|
Property and equipment, net
|
|
585,387
|
|
599,794
|
|
|
Intangible assets, net
|
|
2,750,368
|
|
2,702,160
|
|
|
Deferred income taxes, net
|
|
6,390,442
|
|
5,631,442
|
|
|
Total Assets
|
|
$
53,601,862
|
|
$
51,748,825
|
|
|
LIABILITIES AND STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current Liabilities
|
|
|
|
|
|
|
Accounts payable
|
|
$
593,068
|
|
$
583,157
|
|
|
Accrued liabilities
|
|
1,468,869
|
|
1,577,891
|
|
|
Deferred revenue
|
|
994,390
|
|
1,193,454
|
|
|
Total Current
Liabilities
|
|
$
3,056,327
|
|
$
3,354,502
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
|
Preferred stock—$0.001 par value;
2,000,000 shares authorized; no shares issued and
outstanding
|
|
—
|
|
—
|
|
|
Common
stock—$0.001 par value; 56,000,000 shares authorized; 14,592,490
and 14,563,715 shares issued and outstanding at March 31, 2010 and
December 31, 2009, respectively
|
|
14,593
|
|
14,565
|
|
|
Additional paid-in capital
|
|
65,813,177
|
|
65,128,337
|
|
|
Accumulated deficit
|
|
(15,282,235)
|
|
(16,748,579)
|
|
|
Total Stockholders'
Equity
|
|
50,545,535
|
|
48,394,323
|
|
|
Total Liabilities and Stockholders'
Equity
|
|
$
53,601,862
|
|
$
51,748,825
|
|
|
|
|
|
|
|
|
|
|
SRS LABS, INC. AND
SUBSIDIARIES
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
|
2010
|
|
2009
|
|
|
Revenues
|
|
$
8,385,391
|
|
$
5,704,010
|
|
|
Cost
of sales
|
|
64,484
|
|
71,972
|
|
|
Gross
profit
|
|
8,320,907
|
|
5,632,038
|
|
|
|
|
|
|
|
|
|
Operating expenses (i):
|
|
|
|
|
|
|
Sales
and marketing
|
|
3,420,544
|
|
2,664,992
|
|
|
Research and development
|
|
1,889,993
|
|
1,248,814
|
|
|
General and administrative
|
|
1,565,298
|
|
1,432,127
|
|
|
Total
operating expenses
|
|
6,875,835
|
|
5,345,933
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
1,445,072
|
|
286,105
|
|
|
Other
income, net
|
|
29,639
|
|
104,633
|
|
|
Income
before income taxes
|
|
1,474,711
|
|
390,738
|
|
|
Income
taxes
|
|
8,367
|
|
4,936
|
|
|
Net
income
|
|
$
1,466,344
|
|
$
385,802
|
|
|
|
|
|
|
|
|
|
Net
income per common share:
|
|
|
|
|
|
|
Basic
|
|
$
0.10
|
|
$
0.03
|
|
|
Diluted
|
|
$
0.10
|
|
$
0.03
|
|
|
|
|
|
|
|
|
|
Weighted average shares used in the
per common share calculation:
|
|
|
|
|
|
|
Basic
|
|
14,572,269
|
|
14,419,418
|
|
|
Diluted
|
|
15,320,917
|
|
14,648,122
|
|
|
|
|
|
|
|
|
|
|
(i) Includes
share-based compensation expense as follows:
|
|
|
|
Three Months Ended
March 31,
|
|
|
|
2010
|
|
2009
|
|
Sales and marketing
|
|
$
177,195
|
|
$
115,816
|
|
Research and development
|
|
149,508
|
|
107,723
|
|
General and administrative
|
|
254,459
|
|
242,861
|
|
Total share-based compensation expense
|
|
$
581,162
|
|
$
466,400
|
|
|
|
|
|
|
|
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SOURCE SRS Labs, Inc.