SAN DIEGO, May 7, 2015 (GLOBE NEWSWIRE) -- LRAD Corporation (Nasdaq:LRAD), the world’s leading provider of long range acoustic hailing devices (AHDs) and advanced mass notification systems, today reported financial results for the fiscal second quarter and six months ended March 31, 2015.
Fiscal Second Quarter 2015 Financial Highlights
- Revenues: Fiscal second quarter 2015 revenues totaled $4.5 million, $901,000 less than the $5.4 million reported in the fiscal second quarter of 2014, due to the timing of the receipt of orders.
- Revenues in the quarter were driven by a number of follow-on orders for Asian navies, coast guards and militaries, as well as mass notification, wildlife protection and police, public safety and security applications.
- Net Income: Net Income of $291,000, or $0.01 per diluted share, decreased by $235,000 from $526,000, or $0.02 per diluted share, reported during the fiscal second quarter of 2014.
- Lower revenues in the quarter were partially offset by higher gross profit margins, due to favorable product mix, and lower operating expenses.
- Balance Sheet: Cash and cash equivalents totaled $19.1 million at March 31, 2015, a decline from $23.9 million reported at September 30, 2014 due to $4.5 million of investments in short and long-term marketable securities. Working capital totaled $26.0 million, compared to $27.7 million, at September 30, 2014, due to the purchase of $2.8 million of long-term marketable securities.
Six Months Ended March 31, 2015 Financial Highlights
- Revenues: Revenues for the six months ended March 31, 2015 totaled $8.9 million, a decline of $338,000 from the $9.2 million reported during the same period in fiscal 2014.
- Net Income: Despite a small decline in revenues year-to-date, net income for the six months ended March 31, 2015 increased by $138,000 to $796,000, or $0.02 per diluted share, from $657,000, or $0.02 per diluted share, reported for the same period in fiscal 2014.
“Revenues from our omnidirectional ONE VOICETM mass notification product line nearly doubled year-over-year and constitute 15% of total revenues,” commented Tom Brown, President and CEO of LRAD Corporation. “While international markets have driven the growth in our mass notification business to date, we are pursuing several domestic opportunities which, if awarded, will also drive domestic growth of our highly intelligible voice life safety systems in coming quarters.”
Select Operating and Business Highlights
- Announced the retention of Foley & Lardner LLC to consult on the development of marketing, strategic planning, and business development strategies for growing LRAD’s domestic mass notification business.
- Received follow-on orders totaling over $2.4 million from multiple Asian customers. The orders included LRAD 1000Xi and LRAD 100X systems to be shipped to a navy and a public security group in Southeast Asia; LRAD 500 systems for public safety from another Asian nation; LRAD 1000Xi systems for Asian fisheries; and LRAD 360X mass notification installations in an Asian country upgrading its tsunami warning system to include LRAD’s highly intelligible voice capability.
- Repurchased 69,213 shares during the fiscal second quarter ended March 31, 2015, bringing the total number of shares repurchased to 346,370 since the initial purchases in December 2013.
“While first half results were comparable to the prior fiscal year, with more governments allocating additional resources for mass notification installations and upgrades, and civil unrest escalating around the world, we expect our second half will be much stronger due to continued international growth and increasing domestic business opportunities for our omnidirectional life safety systems and directed acoustic hailing devices,” Brown concluded.
Webcast and Conference Call Details
Management will host a conference call to discuss fiscal second quarter 2015 financial results this afternoon at 4:30 p.m. E.T. 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=102120. 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 manufactures long range acoustic hailing devices and advanced mass notifications systems to 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 mass notification and public address, fixed and mobile defense deployments, maritime security, critical infrastructure and perimeter security, commercial security, border and port security, law enforcement and emergency responder communications, asset protection, and wildlife control and preservation. 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, 2014. LRAD Corporation disclaims any intent or obligation to update those forward-looking statements, except as otherwise specifically stated.
| LRAD Corporation | |||||||||
| Consolidated Balance Sheets | |||||||||
| (000's omitted) | |||||||||
| March 31, | |||||||||
| 2015 | September 30, | ||||||||
| (Unaudited) | 2014 | ||||||||
| ASSETS | |||||||||
| Current assets: | |||||||||
| Cash and cash equivalents | $ | 19,148 | $ | 23,895 | |||||
| Short-term marketable securities | 1,746 | - | |||||||
| Accounts receivable, net | 2,347 | 4,284 | |||||||
| Inventories, net | 4,562 | 3,896 | |||||||
| Prepaid expenses and other | 693 | 524 | |||||||
| Total current assets | 28,496 | 32,599 | |||||||
| Long-term marketable securities | 2,800 | - | |||||||
| Property and equipment, net | 414 | 360 | |||||||
| Intangible assets, net | 52 | 54 | |||||||
| Prepaid expenses and other - noncurrent | 673 | 766 | |||||||
| Total assets | $ | 32,435 | $ | 33,779 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||
| Current liabilities: | |||||||||
| Accounts payable | $ | 1,037 | $ | 830 | |||||
| Accrued liabilities | 1,495 | 4,088 | |||||||
| Total current liabilities | 2,532 | 4,918 | |||||||
| Other liabilities - noncurrent | 146 | 158 | |||||||
| Total liabilities | 2,678 | 5,076 | |||||||
| Total stockholders' equity | 29,757 | 28,703 | |||||||
| Total liabilities and stockholders' equity | $ | 32,435 | $ | 33,779 | |||||
| LRAD Corporation | ||||||||||||||||
| Consolidated Statements of Income | ||||||||||||||||
| (000's omitted except share and per share amounts) | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| Three months ended | Six months ended | |||||||||||||||
| March 31, | March 31, | |||||||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||||||
| Revenues | $ | 4,486 | $ | 5,387 | $ | 8,872 | $ | 9,210 | ||||||||
| Cost of revenues | 2,189 | 2,658 | 4,216 | 4,536 | ||||||||||||
| Gross profit | 2,297 | 2,729 | 4,656 | 4,674 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Selling, general and administrative | 1,466 | 1,631 | 2,868 | 3,056 | ||||||||||||
| Research and development | 570 | 576 | 1,047 | 969 | ||||||||||||
| Total operating expenses | 2,036 | 2,207 | 3,915 | 4,025 | ||||||||||||
| Income from operations | 261 | 522 | 741 | 649 | ||||||||||||
| Other income | 31 | 5 | 57 | 10 | ||||||||||||
| Income from operations before income taxes | 292 | 527 | 798 | 659 | ||||||||||||
| Income tax expense | 1 | 1 | 2 | 2 | ||||||||||||
| Net income | $ | 291 | $ | 526 | $ | 796 | $ | 657 | ||||||||
| Net income per common share - basic and diluted | $ | 0.01 | $ | 0.02 | $ | 0.02 | $ | 0.02 | ||||||||
| Weighted average common shares outstanding: | ||||||||||||||||
| Basic | 33,253,719 | 33,133,915 | 33,244,929 | 33,080,702 | ||||||||||||
| Diluted | 33,847,965 | 34,040,509 | 33,816,805 | 33,756,467 | ||||||||||||