HENDERSON, NEVADA, January 26, 2012 – Parametric Sound Corporation (OTCBB: PAMT), a leading innovator of audio products and solutions, today announced financial results for its first fiscal 2012 quarter ended December 31, 2011.
Q1 2012 Highlights:- Upgraded HyperSound technology through introduction of new DSP and software enhancements resulting in dramatically improved sound quality whereupon we believe our distortion is comparable or less than many traditional speakers.
- Appointed Kenneth F. Potashner to the board of directors. Mr. Potashner, an experienced technology executive, has also commenced a consultancy arrangement to develop strategies for a range of markets now possible with our latest HyperSound audio innovations. He has agreed in principle to thereafter manage company growth by becoming Executive Chairman at a future date expected to be before March 15, 2012.
- Continued to sell HSS-3000 product line while preparing customers for Version 2 product upgrade. HSS-3000 V2 products began shipping in January 2012.
- Acquired all technology and intellectual property covered by a License and Royalty Agreement with related party Syzygy Licensing LLC. This terminates all future royalty obligations and assigned to us all related pending patent applications. We now own 100% of our technology without royalty obligations and control future licensing.
- Strengthened and expanded IP portfolio and in January filed a new patent application incorporating recent innovations.
Product upgrades developed in Q1 served as the foundation for January 2012 product announcements and our showcasing at CES of significantly improved HSS-3000 products, said Elwood G. Norris, President and CEO of Parametric Sound. These improvements enhance our prospects to deliver licensable technology in new targeted consumer markets including computers, video gaming, televisions, home audio and mobile devices.
Our upgraded HyperSound technology produces a crisp, clean and robust sound image enhancing stereo output to produce an enhanced 3D sound image from just two thin emitters. The enhanced audio we produce results in a distinct sound experience unattainable from traditional audio. It creates immersive 3D sound enjoyment not possible from surround systems, 5.1, 7.1 or virtual, or from headphones or electronic processing. A simple HyperSound 2.1 system, two thin emitters or speakers and a small subwoofer, offers a novel audio solution for a range of consumer applications.
The addition of Ken Potashner to our Board and as a strategic consultant adds important executive and management experience to pursue the breadth of markets that can be captured with our new audio technology. He is already making important contributions as we prepare to rapidly expand market applications for our audio solutions. And we are very pleased that he has agreed in principle to manage our future growth by becoming Executive Chairman at a future date expected to be before March 15, 2012.
We are pleased by the response to the sound quality of our HSS-3000 V2 products from customers in North America, Europe and Asia. We commenced limited shipments in January and have already booked our first volume V2 order. Q1 sales were affected by the planned product upgrade. We expect revenues to grow with the introduction of V2 and we are pursuing volume orders worldwide. We are delivering on our promise to provide economical, high quality directed audio solutions. And we are pursuing new consumer markets for our novel audio solution.
We continue to innovate and add to our IP portfolio. For commercial customers including digital signage, kiosks, POS terminals and slot machines, we are developing new form factors for our emitters to better meet their audio solution needs.
Q1 2012 Financial Summary:
In the first quarter revenues were slowed as customers awaited the V2 upgrade released in January. Revenues were $64,781 for the quarter and there were no comparable revenues during Q1 of the prior year as our HSS-3000 products were under development at that time.
Gross profit margin was 62% and was positively impacted from usage of parts that had inventory obsolescence and allowances recorded in prior periods and included a 5% royalty that will not be incurred in future periods due the technology assignment completed on December 29, 2011.
Selling, general and administrative expenses for Q1 ended December 31, 2011 were $338,959, compared to $129,344 during comparable Q1 ended December 31, 2010. The increase included a $133,000 increase in non-cash share based compensation expense and a $48,000 increase in professional fees due to increased legal, auditing, meeting and filing costs.
Research and development expenses for Q1 were $230,705, compared to $126,397 for Q1 of the prior year. The increase included a $25,000 increase in non-cash share based compensation expense and a $45,000 increase in prototype related costs due to work on technology upgrades and new emitter development.
The net loss for Q1 was $531,017, $(0.03) per share, compared to $325,940, $(0.02) per share, during Q1 of the prior year. The Q1 2012 loss included $196,000 of non-cash share based compensation expenses.
About Parametric Sound Corporation
Parametric Sound Corporation’s pioneering HyperSound technology employs a tightly focused beam of sound to target specific audiences without the ambient noise of traditional speakers. The Company owns a substantial body of intellectual property. Recent innovations enhance stereo output to produce a robust 3D audio image from just two ultra-thin speakers opening opportunities for consumer markets. For more information about the Company and its products, please visit: www.parametricsound.com.
Cautionary note on forward-looking statementsThis press release includes forward-looking information and statements. Except for historical information contained in this release, statements in this release may constitute forward-looking statements regarding our assumptions, projections, expectations, targets, intentions or beliefs about future events that are based on management’s belief, as well as assumptions made by, and information currently available to, management. While we believe that our expectations are based upon reasonable assumptions, there can be no assurances that our goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect our actual results and may cause results to differ materially from those expressed in forward-looking statements made by us or on our behalf. Some of these factors include the acceptance of existing and future products, the impact of competitive products and pricing, general business and economic conditions, and other factors detailed in our Annual Report on Form 10-K and other periodic reports filed with the SEC. We specifically disclaim any obligation to update or revise any forward-looking statement whether as a result of new information, future developments or otherwise.