Parametric Sound Corporation Reports Year-End Fiscal 2012

Parametric Sound Corporation Reports Year-End Fiscal 2012 Results 
Company Announces It Has Signed More Than 20 NDAs With Strategic
Business Prospects 
SAN DIEGO, CA -- (Marketwire) -- 11/28/12 --  Parametric Sound
Corporation (NASDAQ: PAMT), a leading innovator of audio technology
and solutions, today announced financial results for its fiscal year
ended September 30, 2012. During the fiscal fourth quarter and year
2012, the Company continued to execute its strategy to license and
commercialize its HyperSound(TM) directed audio IP across a wide
range of consumer products.  
Recent Operational Highlights: 

--  Continued progress with targeted licensing partners - The Company is
    in various stages of negotiation with leading OEMs in the video
    gaming, television, personal computer, home theater, casino gaming and
    mobile device markets and believes it is on target to reach business
    agreements with two to three major OEMs in these markets prior to the
    end of its March 2013 quarter. The Company is working on
    co-development projects and developing market vertical prototypes.
--  Building indirect channels to address market opportunity in digital
    signage - The Company expanded its direct sales force to address
    increased interest from regional and national retailers, as well as
    other multi-location customers. In addition to its direct sales
    efforts, the Company signed agreements with three established
    distributors/systems integrators in the digital signage market: Ingram
    Micro, Inc., Four Winds Interactive and Fujitsu Frontech North
    America. The Company has also begun exploring manufacturing
    relationships to provide the volume necessary to address potential
    increased demand for digital signage units.
--  Established subsidiary company to focus on opportunities and unique
    requirements of the health care market - The Company formed HyperSound
    Health, Inc. to develop technology for products targeting persons
    requiring sound amplification and the more 36 million Americans who
    suffer from hearing loss.
--  Expanding and strengthening the Company's domestic and international
    patent portfolio - At September 30, 2012, the Company owned 23 U.S.
    patents, two foreig
n patents and 10 pending patents. The Company's
    recent IP work prioritized protection of the core technology with
    efforts now underway to broadly expand its roadmap.

Management Commentary: 
"We have achieved a significant success rate in gaining access to our
targeted licensees and we now have more than 20 strategic business
prospects under non-disclosure agreements. We have launched two
product co-development efforts and anticipate additional
co-development projects over the next couple quarters. We have also
made significant progress in building a working capital efficient
go-to-market distribution strategy for the digital signage business
intended to leverage systems integrators, distributors and
manufacturing partners," said Kenneth Potashner, executive chairman.
"We continue to keep ourselves focused on key opportunities
associated with licensing our intellectual property. With that said
we are experiencing strong interest for our technology in the digital
signage sector and plan on servicing that interest through business
collaborations. This model requires relatively limited investment,
and should preserve our cash and generate operating leverage and
returns as revenue grows."  
Fiscal 2012 Financial Summary:  
Revenues totaled $234,000 in fiscal 2012, as compared to $79,000 for
the prior fiscal year, reflecting a full year of digital signage
product sales. Gross profit was $114,000 compared to $44,000 for the
prior year. 
Selling, general and administrative expenses in fiscal 2012 totaled
$3.2 million, as compared to $0.6 million in fiscal 2011. Fiscal 2012
expense included non-cash stock based compensation from stock options
of $1.4 million compared to $94,000 for the prior year. Other
selling, general and administrative costs increased as we added
executive management and increased staffing related to our licensing
initiative. The Company also invested in developing digital signage
distributors and new customers focusing on larger volume applications
that are expected to contribute to improved cash flow during fiscal
Research and development expenses totaled $1.3 million in fiscal 2012
including stock option expense of $266,000. Research and development
expenses for fiscal 2011 were $648,000 including $94,000 of stock
option expense. The increase was primarily the result of adding
employees to support technology development and costs associated with
prototypes and testing for licensing initiatives. 
Net loss for fiscal 2012 was $4.5 million, or $(0.85) per basic and
diluted common share, as compared to a net loss of $1.5 million, or
$(0.44) per basic and diluted common share for fiscal year ended
September 30, 2011. The net loss for 2012 and 2011 included $1.7
million and $188,000 of non-cash stock based compensation expense,
Cash and cash equivalents totaled $5.5 million at September 30, 2012,
compared to $0.5 million at September 30, 2011. The increase
reflected proceeds from the Company's secondary stock offering that
netted $8.0 million. 
Conference Call Information: 
Members of the Company's management team will host a conference call
at 5:00 P.M. ET today to discuss the Company's financial results.
Investors and interested parties may participate in the call by
dialing (877) 303-9855 and referring to Conference ID: 70964793. It
is suggested that you dial into the conference center approximately
10 minutes prior to the scheduled start time to ensure that all
participants are on line at the start of the call. The conference
call is also being webcast and is available via the investor
relations section of the Company's website, 
About Parametric Sound Corporation (PAMT) 
Parametric Sound Corporation (PAMT) is a pioneering innovator of
directed audio solutions. With a substantial body of intellectual
property, Parametric Sound is the foremost authority in the
application of acoustic technology to beam sound to target a specific
listening area without the ambient noise of traditional speakers. The
Company is targeting its technology for new uses in consumer markets
including computers, video gaming, televisions, home audio, health
care and mobile devices. For more information, visit  
Cautionary note on forward-looking statements 
This 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 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 the Company believes that
its expectations are based upon reasonable assumptions, there can be
no assurances that its goals and strategy will be realized. Numerous
factors, including risks and uncertainties, may affect actual results
and may cause results to differ materially from those expressed in
forward-looking statements made by the Company or on its behalf. Some
of these factors include the ability to finalize agreements with
major OEMs in its target markets, acceptance of existing and future
products, the impact of c
ompetitive products and pricing, general
business and economic conditions, and other factors detailed in the
Company's Annual Report on Form 10-K and other periodic reports filed
with the SEC. Except as required by law, the Company specifically
disclaims any obligation to update or revise any forward-looking
statement whether as a result of new information, future developments
or otherwise. 

                        Parametric Sound Corporation                        
                    Condensed Consolidated Balance Sheets                   
                   (000's omitted except per share amount)                  
                                                           September 30,    
                                                          2012       2011   
                                                            $          $    
    Cash and cash equivalents                               5,528        492
    Accounts receivable                                        39          -
    Inventories, net                                          444        273
    Prepaid expenses and other current assets                  63         65
                                                       ---------- ----------
  Total current assets                                      6,074        830
  Equipment and tooling, net                                  177        145
  Intangible assets, net                                    1,314        149
                                                       ---------- ----------
  Total assets                                              7,565      1,124
                                                       ========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY                                        
    Accounts payable                                          173        164
    Accrued liabilities                                       140         15
    Deferred officer compensation                               -        224
                                                       ---------- ----------
  Total current liabilities                                   313        403
  Stockholders' equity                                      7,252        721
                                                       ---------- ----------
  Total liabilities and stockholders' equity                7,565      1,124
                                                       ========== ==========
                        Parametric Sound Corporation                        
              Condensed Consolidated Statements of Operations               
                  (000's omitted except per share amount)                   
                                                            Years Ended     
                                                           September 30,    
                                                          2012       2011   
                                                           $          $     
Revenues                                                     234         79 
Cost of revenues                                             120         35 
                                                       ---------  --------- 
  Gross profit                                               114         44 
Operating expenses: (i)                                                     
  Selling, general and administrative                      3,248        572 
  Research and development                                 1,340        648 
                                                       ---------  --------- 
Total operating expenses                                   4,588      1,220 
                                                       ---------  --------- 
Loss from operations                                      (4,474)    (1,176)
Other income (expenses)                                       12       (308)
                                                       ---------  --------- 
Net loss                                                  (4,462)    (1,484)
                                                       =========  ========= 
Loss per basic and diluted common share                    (0.85)     (0.44)
                                                       =========  ========= 
Weighted average shares used to compute net loss per                        
 basic and diluted common share                            5,258      3,394 
                                                       =========  ========= 
(i) includes non-cash share-based compensation expense as follows:          
                                                            Years Ended     
                                                           September 30,    
                                                          2012       2011   
Selling, general and administrative                        1,421         94 
Research and development                                     266         94 
                                                       ---------  --------- 
    Total share-based compensation expense                 1,687        188 
                                                       =========  ========= 

Tracy Neumann
888-HSS-2150, Ext. 509 
Dave Mossberg
Three Part Advisors, LLC
(817) 310-0051 
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