SOURCE: Parametric Sound Corporation

Parametric Sound Corporation

August 02, 2011 10:00 ET

Parametric Sound Shipping HSS-3000 Directed Audio Systems

Releases Results for 3rd Fiscal Quarter Ended June 30, 2011

HENDERSON, NV--(Marketwire - Aug 2, 2011) - Parametric Sound Corporation (OTCBB: PAMT), a leading innovator of directed audio products and solutions, announced today that it is shipping new HSS-3000 directed audio systems to customers in North America, Europe and Asia. The Company also filed its quarterly report for the third fiscal quarter ended June 30, 2011.

HSS-3000 systems come in two models, a single channel mono unit including an amplifier and one emitter (speaker) and a two channel stereo system with two emitters. The two emitter system offers users installation flexibility to provide (1) broader, yet controlled, audio area coverage; (2) more intense sound output focused at a single area; and (3) the ability to deliver, when and where desired, 3D sound imagery.

"We are pleased to deliver on our promise of a new generation of much improved, more economical HyperSonic sound technology," said Elwood G. Norris, CEO of Parametric Sound. "I am gratified that our HSS-III product line is receiving strong customer response. It is increasingly evident that controlling and focusing sound is paramount for many successful digital signage solutions. The market for digital signage including kiosks and point of sale systems continues to grow worldwide. Independent research confirms that sound increases the effectiveness of digital signage."

HSS-3000 product sales commenced in July 2011. Production evaluation systems were delivered to key customers in the third quarter ended June 30, 2011 while the Company completed assembly setup at its new facility. The Company reported a net loss for the three and nine months ended June 30, 2011 of $484,768 (loss of $0.03 per share) and $1,186,021 (loss of $0.07 per share), respectively. Operating expenses during the nine months ended June 30, 2011 of $884,995 included $432,177 expended on research and development. A total of $169,413 was invested in patents, tooling and equipment during the nine months ended June 30, 2011. As a result of previously reported debt exchange and conversion, the Company reported cash of $482,077 at June 30, 2011 along with working capital of $368,192 including debt of $26,688. Working capital included $103,085 invested in inventories purchased for fourth quarter product shipments. The Company only recently began accepting orders for HSS-3000 products and is carefully ramping production. Backlog was $43,000 at June 30. As the Company became an independent reporting company in September 2010 comparison of current period results with the prior year is not informative.

"While we are thrilled about our new HSS-3000 products, we are dedicated to making continued and important improvements," added Norris. "We designed HSS-III as a platform technology allowing us to easily and rapidly incorporate software and other updates. We are innovating improved processing techniques to further enhance our sound quality. We fully expect our patented and patent pending HSS-III platform to power future products for market opportunities in a wide range of diverse applications."

About Parametric Sound Corporation
Parametric Sound Corporation is an innovator of directed audio solutions employing a tightly focused directional beam of sound to target a specific listening area to communicate without the ambient noise of traditional speakers. A substantial body of intellectual property and an established customer base were inherited from a spin-off completed in September 2010. New innovations resulted in improved third generation HyperSonic® sound technology (HSS®-III directed audio) with HSS-3000 product models recently introduced to market. 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, including those by Mr. Norris, 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 the Company believes that its expectations are based upon reasonable assumptions, there can be no assurances that the Company's goals and strategy will be realized. Numerous factors, including risks and uncertainties, may affect the Company's actual results and may cause results to differ materially from those expressed in forward-looking statements made by or on behalf of the Company. Some of these factors include the acceptance of new products, the impact of competitive products and pricing, the timely development and release of products by the Company, 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. Parametric Sound Corporation 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 Balance Sheets
(000's omitted except per share amount)
(unaudited)
June 30, September 30,
2011 2010
$ $
ASSETS
Current
Cash 482 439
Inventories, net 103 -
Prepaid expenses and other current assets 57 21
Total current assets 642 460
Equipment and tooling, net 158 8
Patents and trademarks, net 150 176
Total assets 950 644
LIABILITIES AND STOCKHOLDERS' EQUITY
Current
Accounts payable 69 148
Accrued liabilities 178 27
Subordinated notes payable, net 27 437
Total current liabilities 274 612
Stockholders' equity 676 32
Total liabilities and stockholders' equity 950 644
Parametric Sound Corporation
Condensed Statements of Operations
(000's omitted except per share amount)
(unaudited)
For the three months For the nine months
ended June 30, ended June 30,
2011 2010 2011 2010
$ $ $ $
Revenues 2 175 2 520
Cost of revenues - 150 - 441
Gross profit 2 25 2 79
Operating expenses: (i)
Selling, general and administrative 147 63 424 215
Research and development 182 17 432 50
Patent impairment - 18 29 41
Total operating expenses 329 98 885 306
Loss from operations (327 ) (73 ) (883 ) (227 )
Other income (expenses) (158 ) - (303 ) -
Net loss (485 ) (73 ) (1,186 ) (227 )
Loss per basic and diluted common share (0.03 ) (0.00 ) (0.07 ) (0.01 )
Weighted average shares used to compute net loss per basic and diluted common share 17,306 15,306 16,244 15,306
(i) includes share-based compensation expense as follows:
For the three months For the nine months
ended June 30, ended June 30,
2011 2010 2011 2010
Selling, general and administrative 25 1 68 5
Research and development 31 - 78 -
Total share-based compensation expense 56 1 146 5

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