Parametric Sound Announces Second Quarter Results
POWAY, CA, May 08, 2012 (Menafn - MARKETWIRE via COMTEX) --Parametric Sound Corporation PAMT, a leading innovator ofaudio products and solutions, today announced financial results forits second fiscal 2012 quarter ended March 31, 2012.
"We are making excellent progress increasing visibility of ourtechnology with companies we are targeting as future IP licensingpartners," said Kenneth F. Potashner, Executive Chairman. "Ourrecently completed public offering has provided net proceeds of 8.0million allowing us to aggressively pursue strategic opportunitiesfor the Company."
Q2 2012 Financial Summary:
As a result of the completed public offering, the Company improvedits financial position and ended the second quarter of fiscal 2012with 7.1 million of cash and working capital of 6.95 million. TheMay 2012 underwriter overallotment exercise provided 660,000 ofadditional proceeds.
Revenues were 59,694 for the second quarter ended March 31, 2012with no comparable revenues in the year-ago quarter as the Company'sHSS-3000 products were under development at that time. Revenues forthe six months ended March 31, 2012 were 124,475 with no comparableprior period revenues.
Gross profit margin was 55 percent for the second quarter ended March31, 2012, and 58 percent for the six months ended March 31, 2012, andwas positively impacted by the usage of parts that had inventoryobsolescence and allowances recorded in prior periods.
Selling, general and administrative expenses for the second quarterwere 725,639, compared to 147,991 during the year-ago quarter. Theincrease included a 260,693 increase in non-cash share basedcompensation expense and a 245,000 increase in personnel andconsultant costs resulting from increased staffing added to pursuethe Company's strategic initiatives. Selling, general andadministrative expenses for the six months ended March 31, 2012 were1,064,598 compared to 277,335 for the prior comparable period. Theincrease resulted from a 393,390 increase in non-cash share basedcompensation expense and a 250,000 increase in personnel andconsultant costs.
Research and development expenses for the second quarter were267,503, compared to 152,381 during the year-ago quarter. Theincrease included a 51,516 increase in non-cash share basedcompensation expense. For the six months ended March 31, 2012,research and development expenses were 498,208 compared to 278,778for the prior year's comparable period. The increase included a76,146 increase in non-cash share based compensation expense and an82,000 increase in staffing costs due to increased personnel.
The net loss for the second quarter ended March 31, 2012 was961,297, or (0.22) per share, compared to 375,313, or (0.12) pershare, during the prior year. The net loss for the six months endedMarch 31, 2012 was 1,492,314, or (0.36) per share, compared to701,253, or (0.22) per share. The net loss for each six-monthperiod included 559,851 and 90,315, respectively, of non-cash sharebased compensation expenses.
Q2 2012 Highlights:
--The Company completed a secondary public offering of 1,888,888 shares
of common stock for gross proceeds of 8.5 million and net proceeds of
approximately 7.3 million. In May 2012 the underwriter exercised its
over-allotment option purchasing an additional 164,512 shares for
gross proceeds of 740,304 increasing the total gross proceeds to
9.24 million. The Company is using the proceeds to launch its
licensing and product-based strategies and to further strengthen its
industry-leading IP portfolio.
--At the market opening on March 22, 2012, the Company's Common Stock
began trading on the NASDAQ Capital Market on a split-adjusted basis.
The Company's Common Stock trades under the symbol PAMT.
--The Company appointed Kenneth F. Potashner as its Executive Chairman
to execute the Company's strategic growth initiatives in a diverse
range of consumer and business markets. Mr. Potashner has extensive
executive and director level experience leading high-growth,
advanced-technology organizations with global footprints. The Company
also added to its executive and technical personnel staff to better
equip the Company to create and support licensing and product
strategies.
--The Company expanded its Board of Directors by appointing James L.
Honore and Dr. Andrew Wolfe as new independent members. Mr. Honore
retired as Executive Vice President at Sony Pictures Entertainment in
December 2011. He brings substantial entertainment industry executive
experience and will work to gain exposure of the Company's technology
to key industry participants. Dr. Wolfe is a well-recognized
consultant on IP matters with substantial licensing and IP protection
experience.
--The Company introduced new versions of its technology during the
quarter employing new DSP and software enhancements to produce a
crisp, clean and unique sound image compared to traditional audio
systems. Recent updates have enhanced the volume achievable from a
given emitter size, an important factor to customers with challenging
installation configurations.
About Parametric Sound Corporation Parametric Sound Corporation is apioneering innovator of directed audio solutions. With a substantialbody of intellectual property, Parametric Sound is the foremostauthority in the application of acoustic technology to beam sound totarget a specific listening area without the ambient noise oftraditional speakers. The Company recently introduced improvedHSS-3000 product models targeting digital signage, kiosk and relatedapplications. Recent innovations produce a distinctive 3D audio imagefrom just two speakers opening opportunities for 3D sound solutionsfor computers and entertainment. For more information, visitwww.parametricsound.com.
Cautionary note on forward-looking statements This press releaseincludes forward-looking information and statements. Except forhistorical information contained in this release, statements in thisrelease may constitute forward-looking statements regarding ourassumptions, projections, expectations, targets, intentions orbeliefs about future events that are based on management's belief, aswell as assumptions made by, and information currently available to,management. While we believe that our expectations are based uponreasonable assumptions, there can be no assurances that our goals andstrategy will be realized. Numerous factors, including risks anduncertainties, may affect our actual results and may cause results todiffer materially from those expressed in forward-looking statementsmade by us or on our behalf. Some of these factors include theacceptance of existing and future products, the impact of competitiveproducts and pricing, general business and economic conditions, andother factors detailed in our Annual Report on Form 10-K and otherperiodic reports filed with the SEC. We specifically disclaim anyobligation to update or revise any forward-looking statement whetheras a result of new information, future developments or otherwise.
CONTACT:
Jim Barnes
CFO
888-HSS-2150 Ext 3
Email Contact
or
INVESTOR RELATIONS CONTACT:
Dave Mossberg
Three Part Advisors, LLC
817 310-0051
SOURCE: Parametric Sound Corporation
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