EXHIBIT 99.1
FOR IMMEDIATE RELEASE
AMERICAN TECHNOLOGY CORPORATION
REPORTS FISCAL 2003 RESULTS
(SAN DIEGO, CALIFORNIA - DECEMBER 29, 2003) -AMERICAN TECHNOLOGY CORPORATION
(NASDAQ: ATCO) (ATC) announced today increased sound product revenue for the
fiscal year ended September 30, 2003. Total revenue for fiscal 2003 was $1.3
million compared to $1.0 million in fiscal 2002, an increase of 30%. Sound
product and related contract and licensing revenue was $1.2 million or 93% of
fiscal 2003 revenues, an 80% increase from $0.67 million or 66% of fiscal 2002
revenues.
The net loss for fiscal 2003 was $8.23 million, comparable to the $8.22 million
net loss for fiscal 2002. Deemed dividends ($2.22 million) and 6% accretion
($0.19 million) on preferred stock of $2.41 million in fiscal 2003 and $0.28
million in fiscal 2002 increased the net loss available to common stockholders
to $10.6 million ($0.67 per common share) and $8.5 million ($0.60 per common
share), respectively. The deemed dividends imputed for the value of warrants
issued with preferred stock in fiscal 2003 of $2.22 million are not cash costs
or contractual obligations of the Company to pay such imputed dividends.
The net loss for the year included $2.5 million expended on product research and
development and also included selling, general and administrative costs of $4.86
million, $0.68 million of interest expense and a $0.23 million gross loss on
revenues. Included in the aforementioned costs was $1.2 million for the cost of
stock and options charged to expense and $0.4 million of debt amortization
recorded as interest expense. The Company had cash and cash equivalents of $9.8
million at September 30, 2003.
Mr. Kalani Jones, chief operating officer commented:
"In fiscal 2003 the Company was in transition from being an advanced development
organization to preparing for volume production and sales support. We also
incurred significant costs in the introduction and production start-up of new
sound products. We made substantial investments in research and development,
expanding our intellectual property rights. While our sound products revenue is
only in its infancy, as we have just commenced sales of our HSS(R), NeoPlanar(R)
and LRAD(TM) product lines, we are structuring our internal resources to enable
significant growth in 2004 and beyond.
Based on current quarter bookings, we expect to report strong revenue growth in
our first fiscal 2004 quarter (ending December 31, 2003). Government and Force
Protection Systems Group (Government Group) revenue in this quarter is expected
to exceed that of the entire previous fiscal year. We remain very optimistic
about the prospects for our Government Group and look for a significant
contribution from it in fiscal 2004.
With the increasing demand for new directed sound communications and advertising
solutions, our Business Group is focused on growing HSS and NeoPlanar revenues
with improved margins in fiscal 2004."
2
ABOUT AMERICAN TECHNOLOGY CORPORATION
American Technology Corporation is Shaping the Future of Sound(R) by developing
and licensing its technology and intellectual property portfolio which includes:
the award-winning HSS(R) (HyperSonic(R) Sound Technology); NeoPlanar(R)
Technology; PureBass(R) Sub-Woofer Technology; LRAD(TM) (Long Range Acoustic
Device) and SFT(R) (Stratified Field(R) Technology). The Company is establishing
a strong portfolio of patents, trademarks, and know-how including over 138 U.S.
and Foreign patents and patent filings to date. For more information on the
Company and its technologies and products please visit the Company's web site at
www.atcsd.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: Except for historical information contained herein, the matters discussed
are forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act. 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, including but not limited to
changes in the sound reproduction industry, our ability to develop future
products, technology shifts, potential technical or manufacturing difficulties
that could delay products, competition, pricing pressures, the uncertainty of
market acceptance of new products and services by customers, warranty or other
claims, the outcome of pending or future litigation, general economic factors
and other risks identified and discussed in the Company's 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 the Company's current expectations. American
Technology Corporation disclaims any intent or obligation to update those
forward-looking statements, except as otherwise specifically stated.
# # #
FOR FURTHER INFORMATION CONTACT:
Investor relations:
Robert Putnam
(858) 679-3168
robert@atcsd.com
Media inquiries:
Don Mathias
(949) 855-4520
dwmath@aol.com
AMERICAN TECHNOLOGY CORPORATION
Condensed Statements of Operations
(000s omitted except per share amounts)
YEAR ENDED SEPTEMBER 30,
2003 2002
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Total revenues $ 1,315 $ 1,011
Cost of revenues 1,544 684
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GROSS PROFIT (LOSS) (229) 327
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OPERATING EXPENSES:
Selling, general and administrative 4,864 3,047
Research and development 2,493 3,622
Other (25) 20
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Total operating expenses 7,332 6,689
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Loss from operations (7,561) (6,362)
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OTHER INCOME (EXPENSE):
Interest expense (687) (1,873)
Other 21 15
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Total other income (expense) (666) (1,858)
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NET LOSS (8,227) (8,220)
Dividend requirements on convertible preferred stock 2,409 283
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NET LOSS AVAILABLE TO COMMON STOCKHOLDERS $ (10,636) $ (8,503)
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NET LOSS PER SHARE OF COMMON STOCK - BASIC AND DILUTED $ (0.67) $ (0.60)
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AVERAGE WEIGHTED NUMBER OF COMMON SHARES OUTSTANDING 15,857,569 14,193,508
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AMERICAN TECHNOLOGY CORPORATION
Condensed Balance Sheets
(000s omitted)
SEPTEMBER 30,
2003 2002
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ASSETS
CURRENT ASSETS:
Cash $ 9,850 $ 1,808
Accounts receivable 184 112
Inventories 409 137
Prepaid expenses and other 34 20
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TOTAL CURRENT ASSETS 10,477 2,077
EQUIPMENT, net 200 363
PATENTS, net 1,067 1,034
PURCHASED TECHNOLOGY, net -- 316
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TOTAL ASSETS $ 11,744 $ 3,790
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LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)
CURRENT LIABILITIES:
Accounts payable $ 604 $ 734
Accrued liabilities 1,379 779
Capital lease short-term portion 10 9
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TOTAL CURRENT LIABILITIES 1,993 1,522
LONG-TERM LIABILITIES 23 3,153
STOCKHOLDERS' EQUITY (DEFICIT) 9,728 (885)
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TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) $ 11,744 $ 3,790
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