SOURCE: Parametric Sound Corporation

Parametric Sound Corporation

November 22, 2011 10:00 ET

Parametric Sound Reports Fiscal Year 2011 Results

Investing in Directed Audio Innovations -- Adding to HyperSonic Sound Intellectual Property Portfolio

HENDERSON, NV--(Marketwire - Nov 22, 2011) - Parametric Sound Corporation (OTCBB: PAMT), a leading innovator of directed audio products and solutions, today announced financial results for its fiscal year ended September 30, 2011.

FY 2011 Highlights:

  • Completed first full fiscal year as an independent public company after completion of a spin-off.
  • Introduced and commenced worldwide sales of a new and more economical HSS-3000 series of directed audio solutions delivering enhanced output and improved ease of installation.
  • Began rebuilding customer pipeline with new products -- trials ongoing for volume prospects.
  • Converted and retired spin-off related debt and obtained equity investment for working capital to support production and sales.
  • HyperSonic® Sound technology subject to three new patent applications in the U.S. and related foreign applications through an exclusive license arrangement.
  • Identified important new markets for directed audio -- commenced discussions with prospective customers.
  • Demonstrated ability of HSS® to deliver a unique 3D audio image.
  • Made significant investment in research -- continued directed audio improvements planned for fiscal 2012.

In October 2010, following a spin-off, Parametric Sound commenced trading as an independent public company focusing on its leadership role in the directed audio market. Electing to discontinue inherited legacy products, the Company focused on new products with improved economics both for customers and the Company. In July 2011 the Company commenced sales of its new HSS-3000 series. With a dedicated focus on directed audio, the Company continues to add to its substantial body of intellectual property and develop new product solutions for growing markets.

"During the past year, we made considerable progress improving the economics and utility of our HyperSonic Sound directed audio solutions," said Elwood G. Norris, CEO of Parametric Sound. "We are now building our customer and application pipeline and expect worldwide sales growth in fiscal 2012. The market for digital signage, including kiosks and point of sale systems, continues to grow along with awareness of the benefits of directed audio. We are developing additional products to be introduced in 2012 targeting new markets."

The financial results for the fiscal year ended September 30, 2011 represents the first full year of operations for Parametric Sound as an independent company. Results for the prior year include allocations prior to the spin-off and are not considered comparable.

The Company reported a net loss for year ended September 30, 2011 of $1,484,458 (loss of $0.09 per share) on revenues of $79,167 from HSS-3000 product sales during the fourth fiscal quarter only. Product deliveries commenced in July 2011, primarily to legacy customers, as the Company began to rebuild distribution and pursue volume directed audio business. Gross profit was $43,643 or 55%. Historical margins are not necessarily indicative of future margins. Operating expenses during the year of $1,220,319 included $619,378 expended on research and development. The Company reported cash of $491,764 at September 30, 2011 and working capital of $426,663. This compares to a working capital deficit of $151,335 at September 30, 2010. As the Company only became an independent reporting company in late September 2010, comparison of current period results with the prior year is not informative.

"Until introduction of HSS-3000 products in July, the HyperSonic product line was stagnant for over five years," noted Norris. "We are reawakening and rebuilding market awareness and pursuing volume opportunities. We anticipate notable new product announcements, customer collaborations and growing product sales in fiscal 2012. Our team is focused on our core mission of being the dominant worldwide provider of directed audio solutions."

About Parametric Sound Corporation
Parametric Sound Corporation's pioneering HyperSonic® Sound 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 produce a distinctive 3D audio image from just two stereo emitters opening opportunities for 3D sound solutions for computers and entertainment. For more information about the Company and its products, please visit: www.parametricsound.com.

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 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.

Parametric Sound Corporation
Condensed Balance Sheets
(000's omitted except per share amount)
(unaudited)
September 30,
2011 2010
$ $
ASSETS
Current
Cash 492 439
Inventories, net 273 -
Prepaid expenses and other current assets 65 21
Total current assets 830 460
Equipment and tooling, net 145 8
Intangible assets, net 149 176
Total assets 1,124 644
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable 164 148
Deferred officer compensation 224 -
Accrued liabilities 15 27
Subordinated notes payable, net - 437
Total current liabilities 403 612
Stockholders' equity 721 32
Total liabilities and stockholders' equity 1,124 644
Parametric Sound Corporation
Condensed Statements of Operations
(000's omitted except per share amount)
(unaudited)
Years Ended September 30,
2011 2010
$ $
Revenues 79 607
Cost of revenues 35 506
Gross profit 44 101
Operating expenses: (i)
Selling, general and administrative 572 447
Research and development 619 229
Patent and inventory impairment 29 347
Total operating expenses 1,220 1,023
Loss from operations (1,176 ) (922 )
Other income (expenses) (308 ) (1 )
Net loss (1,484 ) (923 )
Loss per basic and diluted common share (0.09 ) (0.06 )
Weighted average shares used to compute net loss per basic and diluted common share 16,968 15,306
(i) includes share-based compensation expense as follows:
Years Ended September 30,
2011 2010
Selling, general and administrative 94 4
Research and development 94 -
Total share-based compensation expense 188 4

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