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EX-32.1 - CERTIFICATION - Genasys Inc.dex321.htm
EX-31.1 - CERTIFICATION - Genasys Inc.dex311.htm
EX-31.2 - CERTIFICATION - Genasys Inc.dex312.htm
10-Q - FORM 10-Q - Genasys Inc.d10q.htm

Exhibit 99.1

LRAD CORPORATION REPORTS

FISCAL Q1 2011 REVENUES

Record Quarterly Revenues Expected in Fiscal Q2 2011

SAN DIEGO, CA, February 2, 2011 – LRAD Corporation (NASDAQ: LRAD), the world leader in acoustic hailing devices (AHDs), today reported fiscal Q1 2011 revenues of $2.2 million and back orders of $12.8 million as of December 31, 2010.

“Although fiscal Q1 revenues were lower than expected, we’re scheduled to deliver the $12.8 million in back orders plus additional LRAD® orders this quarter,” remarked Tom Brown, president and chief executive officer of LRAD Corporation. “We anticipate that our trend of record fiscal year revenues will remain intact in 2011 while our quarterly revenues will remain uneven as we build diverse markets for our proprietary Long Range Acoustic Device® systems.”

Revenues for fiscal Q1 2011 decreased 58% from $5.2 million recorded in fiscal Q1 2010. The decrease in revenues was primarily attributable to the timing of LRAD shipments between the first and second quarters of fiscal 2011.

Gross profit for fiscal Q1 2011 was $1.0 million, or 45% of revenues, compared to $3.0 million, or 58% of revenues, for the quarter ended December 31, 2010. The decrease in gross profit was primarily due to decreased revenue in the quarter and lower product margins due to mix, partially offset by higher fixed absorption due to the increased production levels to fulfill back orders.

Operating expenses for fiscal Q1 2011 decreased by $251,000, or 15%, to $1.4 million, compared to $1.7 million for the same period in the prior year. The decrease was primarily attributed to $205,000 in lower sales commission, $105,000 in lower business development costs, $70,000 of favorable bonus expense based on not meeting estimated targets for the quarter, and $21,000 in favorable non-cash share-based compensation expense, partially offset by $96,000 in salary increases primarily for business development staff and a $77,000 increase in bad debt.

Net loss for fiscal Q1 2011 was $355,000 or $(0.01) per share, compared to net income of $1.8 million or $0.06 per diluted share for the same period last year. The net loss for fiscal Q1 2011 includes net income of $82,000 from discontinued operations, compared to a net loss in the prior year of $33,000. The decrease in net income primarily resulted from lower revenues in the quarter and the reduction of the unrealized gain on derivative revaluation related to warrants of $597,000 recorded in the prior year, partially offset by lower operating expenses.

Cash and cash equivalents as of December 31, 2010 decreased $1.8 million to $3.6 million, compared to the balance as of September 30, 2010, due to the reclassification of $3.0 million during the current quarter from cash and cash equivalents to restricted cash for amounts pledged to secure bank guarantees related to a customer sales contract. The Company anticipates $2.4 million of the restricted cash will be released and return to cash and cash equivalents this calendar year with the remaining $600,000 being released in calendar year 2012.

“While we grow our business, we continue to manage the balance sheet and control operating expenses,” concluded Brown. “We look forward to discussing our fiscal Q1 2011 results in tomorrow’s conference call.”


About LRAD Corporation

LRAD Corporation’s Long Range Acoustic Device® (LRAD®) directional communication systems are being used around the world in diverse applications including fixed and mobile military deployments, maritime security, critical infrastructure and perimeter security, commercial security, border and port security, law enforcement and emergency responder communications, and wildlife preservation and control. For more information about LRAD Corporation and its long-range directional sound systems, please visit the company’s web site at www.lradx.com.

Forward-looking Statements: Except 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, 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, 2010. LRAD Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated.

FOR FURTHER INFORMATION CONTACT:

Robert Putnam

Investor Relations

(858) 676-0519

robert@lradx.com


LRAD Corporation and Subsidiary

Consolidated Balance Sheets

(000’s omitted)

 

     December 31,
2010
(Unaudited)
     September 30,
2010
 

ASSETS

     

Current assets:

     

Cash and cash equivalents

   $ 3,608       $ 5,421   

Restricted cash

     2,425         —     

Accounts receivable, net

     1,927         4,188   

Inventories, net

     5,791         2,784   

Prepaid expenses and other

     216         205   

Current assets of discontinued operations

     72         113   
                 

Total current assets

     14,039         12,711   

Restricted cash

     606         —     

Equipment, net

     91         124   

Patents, net

     268         278   

Deposits

     58         58   
                 

Total assets

   $ 15,062       $ 13,171   
                 

LIABILITIES AND STOCKHOLDERS’ EQUITY

     

Current liabilities:

     

Accounts payable

   $ 2,233       $ 965   

Accrued liabilities

     2,607         1,815   

Current liabilities of discontinued operations

     32         53   
                 

Total current liabilities

     4,872         2,833   
                 

Total stockholders’ equity

     10,190         10,338   
                 

Total liabilities and stockholders’ equity

   $ 15,062       $ 13,171   
                 


LRAD Corporation and Subsidiary

Consolidated Statements of Operations

(000’s omitted except share and per share amounts)

(Unaudited)

 

     Three months ended
December 31,
 
     2010     2009  

Revenues

   $ 2,205      $ 5,250   

Cost of revenues

     1,213        2,225   
                

Gross profit

     992        3,025   
                

Operating expenses:

    

Selling, general and administrative

     1,054        1,170   

Research and development

     379        514   
                

Total operating expenses

     1,433        1,684   
                

Income from operations

     (441     1,341   

Other income

     4        596   
                

Income (loss) from continuing operations before income taxes

     (437     1,937   

Provision for income taxes

     —          (85
                

Income (loss) from continuing operations

     (437     1,852   

Loss from discontinued operations, net of taxes

     82        (33
                

Net income (loss)

   $ (355   $ 1,819   
                

Net income per common share - basic and diluted:

    

Continuing operations

   $ (0.01   $ 0.06   

Discontinued operations

   $ —        $ —     
                

Total net income (loss) per common share - basic and diluted

   $ (0.01   $ 0.06   
                

Weighted average common shares outstanding:

    

Basic

     30,633,109        30,552,498   
                

Diluted

     30,633,109        31,130,400