Article for Spatializer Audio Laboratories (OTC BB:SPAZ) 8:01 AM
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SPATIALIZER AUDIO LABORATORIES, INC. REPORTS 652% INCREASE IN FOURTH QUARTER REVENUES AND RECORD PROFITABILITY GROWTH IN FOURTH QUARTER Revenues and Net Income Provides Momentum As Spatializer Emerges From Turnaround to Growth Mode Year End Financials Highlight Enhanced Cash Position and Significantly Improved Balance Sheet Resulting From Recent Financing and Debt Conversion CEO Mandell Outlines Growth I
TUESDAY, MARCH 21, 2000 8:01 AM
WOODLAND HILLS, Calif., Mar 21, 2000 /PRNewswire via COMTEX/ -- Spatializer Audio Laboratories, Inc. (OTC Bulletin Board: SPAZ) today announced significantly improved operating results for the fourth quarter and year ended December 31, 1999. Revenues for the fourth quarter of fiscal 1999 increased to $684,000 compared to $91,000 in the comparable period last year, an increase of 652%. Net Income for the fourth quarter ended December 31, 1999 was $308,000, $0.01 per share, compared to a net loss of ($2,655,000), ($0.11) per share in the prior year.
Revenues for the year ended December 31, 1999 were $1,660,000, compared to $1,680,000 in the prior year, a decrease of 1%. Net Income for the year ended December 31, 1999 was $355,000, $0.01 per share compared to a net loss of ($5,792,000), ($0.29) per share in the prior year.
Working Capital increased to $395,000 at December 31, 1999 as compared to a working capital deficit of ($1,975,000) at December 31, 1998. Shareholders' Equity at December 31, 1999 increased to $768,000 compared to a shareholders' deficit of ($1,553,000) at December 31, 1998. Cash at December 31,1999 increased to $1,022,000 compared to $264, 000 at December 31, 1998. The improvement in the Company's liquidity result from the private placement of $1,050,000 of common stock, at no discount to market, profitable operating results and the conversion of $1 million of short term debt to Series B Redeemable Convertible Preferred Stock in December 1999.
"Last year at this time, we outlined our plan to refocus Spatializer on its core competency as a leading provider of audio technology for the consumer electronics and PC markets and to make the Company profitable. I am pleased to report in announcing these profitable operating results that we have successfully achieved our objectives, which sets us apart from our nearest competitors," stated Henry R. Mandell, Chairman of the Board and Chief Executive Officer. "In addition to these achievements, we have made fundamental changes to our business model and corporate culture, expanded the breadth of our technology offerings and business relationships, and procured the financial resources to leverage our 1999 success to provide momentum to aggressively grow our business."
"Specifically," Mr. Mandell continued, "We set out to aggressively exploit our existing technology to generate immediate new revenue streams. Technology licensing deals with Apple Computer, Inc., who have incorporated our suite of technologies across their hardware platforms, Acer Labs, Inc. and several DVD player design wins with Samsung, LG Electronics, Zenith, Hitachi and Marantz, among others, were the result of these efforts. Indeed, based on our success in the DVD player market, we believe that Spatializer N-2-2(TM) is positioned as the leading virtual surround sound technology in that market with approximately a 40% market share based on industry reported sales. We streamlined our overhead structure. In doing so, we were able to restore profitablity and generate a 21% return on sales. At the same time, we have transitioned from flat fee licenses, which limited revenue growth, to a running royalty business model that provides the Company with upside in the fast growing DVD player and digital audio markets. We laid the ground work to capitalize on emerging market opportunities, by launching StreamFX(TM), our streaming audio enhancement product for the Internet, Vi.B.E(TM), our virtual bass enhancement technology, and by aligning ourselves with VM Labs and their revolutionary NUON(TM) digital signal processor, targeted at the computer gaming market. Lastly, we put the Company's liquidity crisis behind us by obtaining financing, with minimal dilution to the stockholders, to provide the resources to vigorously pursue growth."
Mr. Mandell concluded, "While we are pleased with the extent of our turnaround and the resultant profitable operating results, we will not be satisfied with the status quo. The digital audio revolution is here and Spatializer's technology portfolio and relationships with world class manufacturers strategically positions us to capitalize on this revolution. We have four objectives over the next twelve months. First, to secure the position of Spatializer N-2-2 as the de facto standard for virtual surround sound in not only the global DVD player market, but in a wide range of applications including set top boxes, internet appliances and gaming. Second, to penetrate the market for audio enhancement in portable music devices, including MP3 players. Third, to significantly expand the E-commerce opportunities for StreamFX and the use and distribution of our technology over the Internet. Lastly, we intend to develop new applications and technology to comprehensively embrace audio and voice enhancement for emerging markets such as internet telephony, satellite radio, voice over IP and cellular communications. Quite simply, we intend to emphasize the laboratories aspect of our corporate name and commit substantial resources in this effort. Knowing what we have achieved this past year under difficult circumstances, and now that we are financially unshackled, we are optimistic for achieving greater success. We look forward to the next twelve months and to reporting on the Company's progress."
Spatializer Audio Laboratories, Inc. is a leading developer, licensor and marketer of next-generation technologies for the consumer electronics, computing and entertainment industries. The company's advanced audio technology is incorporated into consumer electronics audio, video and DVD products from global brand leaders including Toshiba, JVC, Panasonic, Hitachi, Samsung, Acer, Sharp, Sanyo, Goldstar, Emerson, Zenith and Proton, in PC multimedia systems and peripherals from Apple, Dell, Gateway, Hewlett Packard, Sony, Fujitsu, Seiko-Epson, NEC, Micron and Labtec, in silicon with Matsushita, ESS, Zoran, Motorola, C-Cube, Acer Laboratories Inc., VM Labs, Inc. and OnChip Systems, and in software compatible with MP3 players such as WinAmp and XingMP3.
Spatializer stock is traded on the OTC Bulletin Board under the symbol "SPAZ". The company is headquartered in Woodland Hills, Calif. and has marketing, engineering and R&D facilities in Santa Clara, Calif. and Tokyo. Further information may be obtained from Spatializer's SEC filings, Web-site (www.spatializer.com) or by contacting the company directly.
Safe Harbor Act Statement Under the Private Securities Litigation Reform Act of 1995: Certain information in this news release, including the comments by Mr. Mandell in paragraphs four, five and six are forward looking statements 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 financial goals will be realized. Numerous uncertainties and risk factors 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. These uncertainties and risk factors include, but are not limited to the continued need for additional capital, dependence on new technology and intellectual property, dependence on the PC and consumer electronics industries, dependence on product shipments of third-party licensees, competition and pricing pressures, the timing and realizable value of the MDT technology, and other risks detailed from time to time in the Company's periodic reports filed with the Securities and Exchange Commission.
Notices: Desper Products, Inc. is a wholly owned subsidiary of Spatializer Audio Laboratories, Inc. Spatializer(R) is a registered trademark and N-2-2(TM), Vi.B.E(TM) and StreamFX(TM) are trademarks of Desper Products, Inc. NUON(TM) is a trademark of VM Labs, Inc.
SPATIALIZER AUDIO LABORATORIES, INC.
Consolidated Balance Sheets
Assets December 31, December 31,
Cash and Cash Equivalents $1,021,998 $264,054
net of allowance for doubtful
(C) 2000 PR Newswire. All rights reserved.
CONTACT: Henry R. Mandell, Chairman of the Board, Chief Executive
Officer, 818-227-3370, firstname.lastname@example.org
WEB PAGE: www.spatializer.com
INDUSTRY CODE: CPR
SUBJECT CODE: ERN
121 27/32 -1 5/32
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