LRAD(R) Corporation Reports Fiscal Third Quarter 2014 Financial Results

LRAD(R) Corporation Reports Fiscal Third Quarter 2014 Financial Results

Continued International Expansion Drives Q3 Revenue Growth of 271% to $8.0
Million

SAN DIEGO, Aug. 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 third quarter and nine months
ended June 30, 2014.

Fiscal Third Quarter 2014 Financial Highlights

  *Revenue: Fiscal third quarter 2014 revenues grew by $5.8 million or 271%
    to $8.0 million, compared to $2.2 million of revenues in the fiscal third
    quarter of 2013.

       *Strong demand from international markets continued to drive growth,
         including the delivery of a $4.0 million order for border security to
         a country in the Middle East.
         

  *Net Income: Net Income of $1.9 million, or $0.06 per diluted share,
    increased by $3.0 million from a loss of $1.1 million, or $0.03 per share,
    reported during the fiscal third quarter of 2013.

       *Gross profit of $5.0 million, or 63.1% of revenues, compared to
         $915,000, or 42.4% of revenues, due to the strong revenue growth,
         favorable fixed overhead absorption and favorable channel mix.
       *Operating expenses increased by $1.1 million or 53%, primarily due to
         commissions paid to third party sales representatives, bonus accruals
         for meeting forecasted performance targets, and salaries, travel and
         consulting fees related to business development personnel, partially
         offset by a decrease in legal expenses due to a lawsuit in the prior
         year.
         

  *Balance Sheet: Cash totaled $21.2 million at June 30, 2014, an increase of
    $5.4 million from the $15.8 million reported at September 30, 2013.
    Working Capital increased to $26.6 million from $23.7 million over the
    same period.

Nine Months Ended June 30, 2014 Financial Highlights

  *Revenue: Revenue for the nine month period ended June 30, 2014 totaled
    $17.2 million, representing an increase of $8.9 million, or 107%, from the
    $8.3 million for the nine month period ended June 30, 2013.
  *Net Income: Net Income during the nine month period ended June 30, 2014
    totaled $2.6 million, or $0.08 per diluted share, a $4.3 million
    improvement from the $1.7 million loss, or $0.05 per share, reported for
    the nine months ended June 30, 2013.

"Increased product offerings, additional business development staff and
support, and continued expansion of international markets offset domestic
defense budget reductions, and led to nine-month revenue that exceeded revenue
for the full fiscal year 2013," commented Tom Brown, President and CEO of LRAD
Corporation. "Our fiscal third quarter, in particular, was positively impacted
by sales of our border security solution, the LRAD 2000X, which saw a $4.0
million shipment to a Middle Eastern country to assist in their border and
perimeter security program."

Select Operating and Business Highlights

  *Launched the LRAD Mobile Sound Barrier, a vehicle mounted speaker system
    that can be secured to any armored, VIP, or other government or corporate
    vehicle, to create a 360° deterrent zone to safely and effectively warn
    and ward off threats. Two initial orders were received from a U.S.
    Government agency, with additional development costs being absorbed by the
    customer in order to customize the product for permanent mounting on
    certain government vehicles.
  *Received a $1.7 million order for LRAD-RX systems and accessories from an
    international navy in Southeast Asia. An initial $950,000 is scheduled to
    ship by September 30, 2014, with the balance to be shipped as new vessels
    are built and commissioned.
  *Repurchased 123,009 shares of stock at an average price of $1.85, bringing
    the total number of shares repurchased to 256,082 at an average price paid
    per share of $1.86.

"Our fourth quarter is off to a good start and we anticipate that we will end
the year achieving one of our strongest financial performances in the
Company's history from both a top and bottom line standpoint," Brown
concluded.

Webcast and Conference Call Details

Management will host a conference call to discuss fiscal third 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=100101. 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)
                                                     
                                                     
                                          June 30,    
                                          2014        September 30,
                                          (Unaudited) 2013
                                                     
ASSETS                                                
Current assets:                                       
Cash and cash equivalents                  $21,200   $15,805
Accounts receivable, net                   3,748       4,958
Inventories, net                           4,732       4,588
Prepaid expenses and other                 550         1,004
Total current assets                       30,230      26,355
Property and equipment, net                337         237
Intangible assets, net                     47          52
Prepaid expenses and other - noncurrent    774         915
Total assets                               $31,388   $27,559
                                                     
LIABILITIES AND STOCKHOLDERS' EQUITY                  
Current liabilities:                                  
Accounts payable                           $652      $1,597
Accrued liabilities                        3,008       1,055
Total current liabilities                  3,660       2,652
Other liabilities - noncurrent             161         146
Total liabilities                          3,821       2,798
Total stockholders' equity                 27,567      24,761
Total liabilities and stockholders' equity $31,388   $27,559


LRAD Corporation and Subsidiary
Consolidated Statements of Operations
(000's omitted except share and per share amounts)
(Unaudited)
                                                               
                              Three months ended      Nine months ended
                              June 30,                June 30,
                              2014        2013        2014        2013
                                                               
Revenues                       $8,004    $2,158    $17,214   $8,328
Cost of revenues               2,955       1,242       7,491       4,564
Gross profit                   5,049       916         9,723       3,764
                                                               
Operating expenses:                                             
Selling, general and           2,488       1,607       5,544       4,150
administrative
Research and development       622         424         1,592       1,302
Total operating expenses       3,110       2,031       7,136       5,452
                                                               
Income (loss) from operations  1,939       (1,115)     2,587       (1,688)
Other income                   5           7           15          22
Income from operations before  1,944       (1,108)     2,602       (1,666)
income taxes
Income taxexpense             1          --         2          2
Net income (loss)              $1,943    $(1,108)  $2,600    $(1,668)
                                                               
Net income (loss) per common                                    
share:
Basic                          $0.06     $(0.03)   $0.08     $(0.05)
Diluted                        $0.06     $(0.03)   $0.08     $(0.05)
Weighted average common shares                                  
outstanding:
Basic                          33,041,142 32,428,095 33,067,515 32,407,475
Diluted                        34,040,509 32,428,095 33,756,467 32,407,475

CONTACT: Company Contact
         E. Brian Harvey
         Director, Investor Relations and Capital Markets
         858.753.8974
         ebharvey@lradx.com
 
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