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LRAD Corporation Reports Fiscal Q2 2013 Results

LRAD Corporation Reports Fiscal Q2 2013 Results

Strong Fiscal Second Half Military and International Sales Anticipated

SAN DIEGO, May 8, 2013 (GLOBE NEWSWIRE) -- LRAD Corporation (Nasdaq:LRAD), the
world's leading provider of long range acoustic hailing devices (AHDs), today
announced revenues of $3.2 million and a net loss of $459,000, or $(0.01) per
share, for its second fiscal quarter ended March 31, 2013. The Company also
reported revenues of $6.2 million and a net loss of $560,000, or $(0.02) per
share, for the six months ended March 31, 2013.

"While our fiscal Q2 2013 revenues were affected by domestic defense spending
uncertainty as a result of sequestration, we are starting to see funds being
released for domestic AHD military purchases," remarked Tom Brown, the
Company's president and CEO. "We are also working with our representatives and
foreign government officials on large international business opportunities as
well as laying the foundation for what we expect to be significant future
sales through partnering with companies that include recently announced
Beijing Paier Technologies, Inc."

Brown continued, "We expect fiscal 2013 revenues to improve over fiscal 2012
based on anticipated strong fiscal second half military and international
sales."

Revenues for fiscal Q2 2013 increased 33% from $2.4 million recorded in fiscal
Q2 2012, due to the timing of orders and shipments. Gross profit for fiscal Q2
2013 was $1.4 million, or 43% of revenues, compared to $1.3 million, or 55% of
revenues, for the same period a year ago. The increase in gross profit was
primarily due to increased revenues. However, the increase is partially offset
by a decrease in the gross profit percentage due to unfavorable product mix
and higher contracted annual maintenance costs related to a large foreign
military sale in March 2011.

Operating expenses for fiscal Q2 2013 were $1.8 million, a 13% increase from
$1.6 million recorded in fiscal Q2 2012, related to legal and other
professional fees associated with a recent lawsuit and threatened proxy
contest, non-cash share-based compensation expense and research and
development costs, partially offset by favorable commission expense.

Net loss for fiscal Q2 2013 was $459,000, or $(0.01) per share, compared to a
net loss of $292,000, or $(0.01) per share, for the same period last year. The
increase in net loss was primarily the result of an increase in operating
expenses.

For the six months ended March 31, 2013, revenues increased 3%to $6.2 million
compared to $6.0 million for the six months ended March 31, 2012. For the
first six months of fiscal 2013, gross profit was $2.8 million, or 46% of
revenues, compared to $3.1 million, or 51% of revenues, for the same period a
year ago. The decrease in gross profit was primarily due to a decrease in the
gross profit percentage due to unfavorable product mix and higher contracted
annual maintenance costs related to a large foreign military sale in March
2011, partially offset by the increase in revenue.

Operating expenses for the six months ended March 31, 2013 were $3.4 million,
compared to $3.1 million for the same period a year ago. The increase was
primarily attributed to increases in legal and other professional fees
associated with a recent lawsuit and threatened proxy contest, non-cash
share-based compensation expense and research and development costs, partially
offset by favorable commission expense.

Net loss for the six months ended March 31, 2013 was $560,000, or $(0.02) per
share, compared to net income of $22,000, or $0.00 per diluted share, for the
same six-month period last year. The decrease in income was primarily
attributable to the decrease in gross profit and increase in operating
expenses.

Cash and cash equivalents at March 31, 2013 was $15.8 million, compared to
$13.9 million at September 30, 2012.

Management is scheduled to discuss the Company's fiscal Q2 2013 business and
financial results on a conference call today 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®. 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, emergency responders, 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: This release contains forward-looking statements
within the meaning of the Securities Act of 1933 and the Securities Exchange
Act of 1934. Forward-looking statements include, among others, statements that
refer to expected sales growth and other improvements in fiscal 2013 financial
results. 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 due to a variety of factors
including, among others, general economic conditions, our dependence on a
limited number of customers, our dependence on continued sales to U.S. and
international governments and businesses that sell to governments, our ability
to obtain financing on favorable terms, or at all, and our ability to expand
our customer base and the acceptance of our products. 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,
2012. The Company 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,   
                                          2013        September 30,
                                          (Unaudited) 2012
                                                     
ASSETS                                                
Current assets:                                       
Cash and cash equivalents                  $15,784   $13,860
Accounts receivable, net                   2,353       5,518
Inventories, net                           4,866       3,112
Prepaid expenses and other                 399         442
Total current assets                       23,402      22,932
Property and equipment, net                240         213
Intangible assets, net                     144         158
Prepaid expenses and other - noncurrent    1,008       1,102
Total assets                               $24,794   $24,405
                                                     
LIABILITIES AND STOCKHOLDERS' EQUITY                  
Current liabilities:                                  
Accounts payable                           $1,239    $995
Accrued liabilities                        880         624
Total current liabilities                  2,119       1,619
Other liabilities - noncurrent             404         364
Total liabilities                          2,523       1,983
Total stockholders' equity                 22,271      22,422
Total liabilities and stockholders' equity $24,794   $24,405




LRAD Corporation and Subsidiary
Consolidated Statements of Operations
(000's omitted except share and per share amounts)
(Unaudited)
                                                               
                              Three months ended      Six months ended
                              March 31,               March 31,
                              2013        2012        2013        2012
                                                               
Revenues                       $3,190    $2,400    $6,170    $6,012
Cost of revenues               1,828       1,083       3,322       2,946
Gross profit                   1,362       1,317       2,848       3,066
                                                               
Operating expenses:                                             
Selling, general and           1,370       1,193       2,543       2,250
administrative
Research and development       457         430         878         811
Total operating expenses       1,827       1,623       3,421       3,061
                                                               
(Loss) income from operations  (465)       (306)       (573)       5
Other income                   7           7           15          20
(Loss) income from operations  (458)       (299)       (558)       25
before income taxes
Income taxexpense             1          (7)        2          3
Net (loss) income              $(459)    $(292)    $(560)    $22
                                                               
Net (loss) income per common   $(0.01)   $(0.01)   $(0.02)   $0.00
share - basic and diluted
Weighted average common shares                                  
outstanding:
Basic                          32,399,199 32,374,499 32,397,168 32,374,499
Diluted                        32,399,199 32,374,499 32,397,168 33,006,994

CONTACT: COMPANY CONTACT:
         Robert Putnam
         +1 858.676.0519
         robert@lradx.com