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Exhibit 99.1



Company Anticipates Strong Finish to Fiscal 2012

SAN DIEGO, CA, August 7, 2012—LRAD Corporation (NASDAQ: LRAD), the world’s leading provider of long range acoustic hailing devices (AHDs), today reported revenues of $3.2 million and net income of $200,000, or $0.01 per diluted share, for its fiscal third quarter ended June 30, 2012. The Company also reported revenues of $9.2 million and net income of $222,000, or $0.01 per diluted share, and positive cash flow of $490,000 for the nine months ended June 30, 2012.

“Our profitable fiscal third quarter performance was due to a pick up in military orders and continuing to manage our business effectively,” commented Tom Brown, president and chief executive officer of LRAD Corporation. “Of note last quarter, we shipped our first omnidirectional LRAD 360XTM order and moved our operations into a new facility with increased manufacturing capacity. Based on expected U.S. military and international orders, we anticipate a strong finish to fiscal 2012.”

Revenues for fiscal Q3 2012 increased 33% from $2.4 million recorded in fiscal Q3 2011. The increase in revenues was primarily attributable to an increase in orders from the U.S. Army.

Gross profit for fiscal Q3 2012 was $1.6 million, or 50% of revenues, compared to $905,000, or 38% of revenues, for the same quarter a year ago. The increase in gross profit was primarily due to the increase in revenue.

Operating expenses for fiscal Q3 2012 decreased to $1.5 million from $1.6 million for the same period in the prior year. The decrease was primarily attributed to decreases of $160,000 in bonus expense as a result of not meeting current year performance targets and $62,000 in commission expense, offset by an increase of $103,000 for non-cash share based compensation expense.

Net income for fiscal Q3 2012 was $200,000, or $0.01 per diluted share, compared to a net loss of $684,000, or $0.02 per share, for the same period last year. The increase in income was primarily attributable to the increase in revenues and gross margin and reduced operating expenses.

For the nine months ended June 30, 2012, revenues decreased 54% to $9.2 million compared to $20.1 million for the nine months ended June 30, 2011. The decrease in revenues was primarily attributable to the lack of orders replacing the delivery of a $12.1 million foreign military order in the quarter ended March 31, 2011. For the first nine months of fiscal 2012, gross profit was $4.6 million, or 51% of revenues, compared to $12.8 million, or 64% of revenues, for the same period a year ago. The decrease in gross profit was primarily due to a higher margin in the prior year as a result of the $12.1 million foreign military order, lower product cost due to volume pricing, and higher fixed absorption due to the increased production levels to fulfill the large foreign military order.

Operating expenses for the nine months ended June 30, 2012 were $4.6 million, a decrease of $3.5 million from the same period a year ago. The decrease was primarily attributed to decreases of $3.0 million in commission expense primarily related to the large foreign military sale and $642,000 in bonus expense as a result of not meeting current year performance targets.

Net income for the nine months ended June 30, 2012 was $222,000, or $0.01 per diluted share, compared to $4.7 million, or $0.15 per diluted share, for the same nine-month period last year. The decrease in income was primarily attributable to the decrease in revenues and gross margin, partially offset by decreased operating expense.

Cash and cash equivalents of $14.4 million at June 30, 2012 were up $490,000 compared to September 30, 2011.

Management is scheduled to discuss the Company’s fiscal Q3 2012 business and financial results on a conference call tomorrow, August 8, 2012, at 4:30 p.m. Eastern Time.

About LRAD Corporation

LRAD Corporation is using long range communication to resolve uncertain situations peacefully and save lives on both sides of its proprietary Long Range Acoustic Device®. Thousands of LRAD® systems are in service 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, asset protection and wildlife preservation and control. For more information about the Company and its LRAD systems, please visit

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. These risks and uncertainties are 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, 2011. LRAD Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated.


Robert Putnam

+1 858.676.0519

LRAD Corporation and Subsidiary

Consolidated Balance Sheets

(000’s omitted)


     June 30,
     September 30,



Current assets:


Cash and cash equivalents

   $ 14,361       $ 13,871   

Restricted cash

     606         606   

Accounts receivable, net

     2,104         5,098   

Inventories, net

     3,117         2,736   

Prepaid expenses and other

     736         664   

Assets of discontinued operations

     —           6   







Total current assets

     20,924         22,981   

Restricted Cash

     39         —     

Equipment, net

     185         75   

Patents, net

     188         226   

Prepaid expenses – noncurrent

     1,110         1,219   







Total assets

   $ 22,446       $ 24,501   









Current liabilities:


Accounts payable

   $ 593       $ 1,040   

Accrued liabilities

     557         2,900   

Liabilities of discontinued operations

     —           9   







Total current liabilities

     1,150         3,949   

Other liabilities – noncurrent

     321         277   







Total liabilities

     1,471         4,226   







Total stockholders’ equity

     20,975         20,275   







Total liabilities and stockholders’ equity

   $ 22,446       $ 24,501   







LRAD Corporation and Subsidiary

Consolidated Statements of Operations

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



     Three months ended
June 30,
    Nine months ended
June 30,
     2012     2011     2012     2011  


   $ 3,161      $ 2,382      $ 9,173      $ 20,090   

Cost of revenues

     1,586        1,477        4,533        7,325   













Gross profit

     1,575        905        4,640        12,765   













Operating expenses:


Selling, general and administrative

     1,120        1,119        3,370        6,563   

Research and development

     415        514        1,225        1,559   













Total operating expenses

     1,535        1,633        4,595        8,122   













(Loss) Income from operations

     40        (728     45        4,643   

Other income

     7        4        26        13   













(Loss) income from continuing operations before income taxes

     47        (724     71        4,656   

Income tax (benefit) expense

     (153     (38     (151     74   













(Loss) income from continuing operations

     200        (686     222        4,582   

Income from discontinued operations, net of taxes

     —          2        —          83   













Net (loss) income

   $ 200      $ (684   $ 222      $ 4,665   













Net (loss) income per common share – basic and diluted:


Continuing operations

   $ 0.01      $ (0.02   $ 0.01      $ 0.15   

Discontinued operations

   $ 0.00      $ 0.00      $ 0.00      $ 0.00   














   $ 0.01      $ (0.02   $ 0.01      $ 0.15   

Weighted average common shares outstanding:



     32,374,499        32,335,846        32,374,499        30,616,660   














     33,492,944        32,335,846        33,168,978        31,560,456