LRAD Corporation Reports Record Fiscal Year Revenues and Profits for FY 2011
SAN DIEGO, CA, December 5, 2011 – LRAD Corporation (NASDAQ: LRAD), the world’s leading provider of acoustic hailing devices (AHDs), today reported record revenues of $26.5 million and record net income of $0.15 per diluted share for the fiscal year ended September 30, 2011.
In addition to record fiscal year revenues and profits, accomplishments in fiscal 2011 included:
- Achieved record Company revenues for the fourth straight fiscal year and second consecutive year of profitability; the first two years of profitability in the Company’s history.
- Recorded fifth consecutive fiscal year of double digit LRAD® systems and services sales growth.
- Grew international business by 254% year over year, which included the delivery of the largest single order in the Company’s history to date: $12.1 million in LRAD systems to a military service of a foreign government.
- Completed the development of the LRAD 2000XTM, the Company’s most powerful AHD to date, to meet the requirements of larger security applications. The LRAD 2000X was released for sale this quarter (fiscal Q1 2012).
- Developed and launched a wireless version of the LRAD 100XTM, which is receiving strong initial market acceptance. Wireless capability is being implemented throughout the LRAD product family.
- Increased cash balance by $8.4 million through positive cash flow from operating activities and exercise of warrants.
"Our record fiscal 2011 financial results demonstrate the versatility of our proprietary Long Range Acoustic Device® systems and their growing international acceptance," said Tom Brown, president and CEO of LRAD Corporation. "By expanding LRAD sales further into the international military, domestic law enforcement, and wildlife preservation/critical asset protection markets, we were able to achieve record fiscal year revenues and profits even with a 40% reduction in year over year U.S. Military business due to ongoing Federal budget uncertainty."
Revenues for fiscal year 2011 increased 59% to $26.5 million, compared to $16.7 million for fiscal year 2010. The increase in fiscal year 2011 revenues was derived primarily from the shipment of a $12.1 million order to a foreign government. Gross profit for fiscal 2011 was $15.9 million or 60% of total revenues, compared to $9.2 million, or 55% of total revenues for fiscal 2010. The increase in gross profit was primarily due to increased revenues, increased fixed cost absorption and lower product cost due to higher volume purchases.
Operating expenses for fiscal 2011 increased 63% to $10.9 million, compared to $6.7 million in fiscal 2010. The increase was primarily attributed to increases of $2.8 million for sales commissions, primarily related to the large foreign government sale, $1.1 million for bonus expense based on meeting annual performance targets, and $385,000 for salary and consulting expense, primarily related to increased business development staffing.
Net income for fiscal 2011 was $5.0 million, or $0.15 per diluted share, compared to net income of $3.0 million, or $0.10 per diluted share, for fiscal 2010. The increases in net income and per share income were due primarily to increased international sales of the Company's LRAD-X® systems.
"In fiscal 2012, we will continue to enhance our LRAD systems in response to customer feedback and market expansion opportunities, and work to further diversify our customer base. Despite protracted government budget delays and spending uncertainty, we remain focused on securing significant domestic and international business," Brown concluded. "We look forward to discussing our fiscal year 2011 financial results and some of our fiscal 2012 business prospects on tomorrow’s conference call."
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About LRAD Corporation
LRAD Corporation's Long Range Acoustic Device®(LRAD®) directional communication systems are being used 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, and wildlife preservation and control. For more information about LRAD Corporation and its long-range directional sound systems, please visit the company's web site at http://www.lradx.com/.
