SAN DIEGO, Calif., May 7, 2014 (GLOBE NEWSWIRE) -- LRAD Corporation (Nasdaq:LRAD), the world's leading provider of long range acoustic hailing devices (AHDs), today reported financial results for the fiscal second quarter and six months ended March 31, 2014.
Fiscal Second Quarter 2014 Financial Highlights
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Revenue: Fiscal second quarter 2014 revenue grew by $2.2 million or 69% to $5.4 million, compared to $3.2 million of revenue in the fiscal second quarter of 2013.
- Revenue grew 69% as a result of continued demand from international markets, including the delivery of a $1.3 million order for a national police force in Southeast Asia.
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Net Income: Net Income of $526,000, or $0.02 per diluted share, increased by $985,000 from a loss of $459,000, or $0.01 per share, reported during the fiscal second quarter of 2013.
- Operating expenses increased by $380,000 or 21%, primarily due to an increase in salaries, travel and consulting fees related to business development personnel and a bonus accrual for meeting forecasted performance targets, partially offset by a decrease in legal expenses due to the lawsuit in the prior year.
- Balance Sheet: Cash totaled $18.5 million at March 31, 2014, an increase of $2.7 million from the $15.8 million reported at September 30, 2013. Working Capital increased to $24.6 million from $23.7 million over the same period.
Six Months Ended March 31, 2014 Financial Highlights
- Revenue: Revenue for the six month period ended March 31, 2014 totaled $9.2 million, representing an increase of $3.0 million, or 49%, from the $6.2 million for the six month period ended March 31, 2013.
- Net Income: Net Income during the six month period ended March 31, 2014 totaled $657,000, or $0.02 per diluted share, a $1.2 million improvement from the $560,000 loss, or $0.02 per diluted share, reported for the six months ended March 31, 2013.
"Strength across international territories continues to drive significant revenue growth which has offset domestic defense budget reductions," commented Tom Brown, President and CEO of LRAD Corporation. "In particular, our Long Range Acoustic Devices® are being accepted throughout Asia and the Middle East, resulting in 75% of our year-to-date revenues coming from international markets."
Select Operating and Business Highlights
- Launched a newly designed mobile mass notification system which includes a self-contained, ruggedized trailer with a LRAD 360X unit mounted on a 30-foot telescoping mast. This product will provide mobility to our mass notification and emergency warning applications.
- Received a $763,000 follow-on order for LRAD devices and accessories to be used for bird mitigation and wildlife preservation and control for an international mining concern.
- Repurchased 80,265 shares of stock at an average price of $1.86, bringing the total number of shares repurchased to 133,073.
"Revenues grew 49% in the first half of the year compared to the prior year. Our investment in new business development personnel has successfully contributed to our expansion into new territories and into the mass notification market. Based on our current outlook, we anticipate a very strong third quarter and second half of the year," Brown concluded.
Webcast and Conference Call Details
Management will host a conference call to discuss fiscal second quarter 2014 financial results this afternoon at 4:30 p.m. ET. The conference call can be accessed by dialing toll-free at 888-567-1602, or toll/international at 862-255-5346. A webcast will also be available at the following link: http://www.visualwebcaster.com/event.asp?id=99123. A replay of the call will be available two hours after the airing of the call, and available for 90 days at the aforementioned webcast link. Questions to management may be submitted during the call by emailing them to: investor@lradx.com.
About LRAD Corporation
LRAD Corporation is using long range communication to peacefully resolve uncertain situations and save lives on both sides of its proprietary Long Range Acoustic Device®. LRAD® systems are being sold into 70 countries 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, emergency warning and mass notification, asset protection and wildlife preservation and control. For more information about the Company and its LRAD systems, please visit 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. 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, 2013. LRAD Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated.
| LRAD Corporation and Subsidiary | ||
| Consolidated Balance Sheets | ||
| (000's omitted) | ||
| March 31, | ||
| 2014 | September 30, | |
| (Unaudited) | 2013 | |
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $ 18,532 | $ 15,805 |
| Accounts receivable, net | 2,760 | 4,958 |
| Inventories, net | 5,495 | 4,588 |
| Prepaid expenses and other | 626 | 1,004 |
| Total current assets | 27,413 | 26,355 |
| Property and equipment, net | 357 | 237 |
| Intangible assets, net | 45 | 52 |
| Prepaid expenses and other - noncurrent | 821 | 915 |
| Total assets | $ 28,636 | $ 27,559 |
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 1,118 | $ 1,597 |
| Accrued liabilities | 1,655 | 1,055 |
| Total current liabilities | 2,773 | 2,652 |
| Other liabilities - noncurrent | 159 | 146 |
| Total liabilities | 2,932 | 2,798 |
| Total stockholders' equity | 25,704 | 24,761 |
| Total liabilities and stockholders' equity | $ 28,636 | $ 27,559 |
| LRAD Corporation and Subsidiary | ||||
| Consolidated Statements of Operations | ||||
| (000's omitted except share and per share amounts) | ||||
| (Unaudited) | ||||
|
Three months ended March 31, |
Six months ended March 31, |
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| 2014 | 2013 | 2014 | 2013 | |
| Revenues | $ 5,387 | $ 3,190 | $ 9,210 | $ 6,170 |
| Cost of revenues | 2,658 | 1,828 | 4,536 | 3,322 |
| Gross profit | 2,729 | 1,362 | 4,674 | 2,848 |
| Operating expenses: | ||||
| Selling, general and administrative | 1,631 | 1,370 | 3,056 | 2,543 |
| Research and development | 576 | 457 | 969 | 878 |
| Total operating expenses | 2,207 | 1,827 | 4,025 | 3,421 |
| Income (loss) from operations | 522 | (465) | 649 | (573) |
| Other income | 5 | 7 | 10 | 15 |
| Income from operations before income taxes | 527 | (458) | 659 | (558) |
| Income tax expense | 1 | 1 | 2 | 2 |
| Net income (loss) | $ 526 | $ (459) | $ 657 | $ (560) |
| Net income (loss) per common share: | ||||
| Basic | $ 0.02 | $ (0.01) | $ 0.02 | $ (0.02) |
| Diluted | $ 0.02 | $ (0.01) | $ 0.02 | $ (0.02) |
| Weighted average common shares outstanding: | ||||
| Basic | 33,133,915 | 32,399,199 | 33,080,702 | 32,397,168 |
| Diluted | 34,040,509 | 32,399,199 | 33,756,467 | 32,397,168 |