Andrea Electronics Corporation Announces First Quarter 2001 Results
May 03, 2001, 01:00 ET from Andrea Electronics Corporation
MELVILLE, N.Y., May 3 /PRNewswire/ -- Andrea Electronics Corporation
(Amex: AND) announced today that revenues for the three months ended
March 31, 2001 were approximately $2.6 million, compared to approximately
$3.2 million in the same period in 2000. Net loss applicable to common
shareholders for the three months ended March 31, 2001 was approximately
$2.7 million, or $0.18 per share on a diluted basis, compared to a net loss of
approximately $2.6 million, or $0.19 per share on a diluted basis, for the
three months ended March 31, 2000.
The principal factors that contributed to the $2.7 million loss applicable
to common shareholders for the first quarter ended March 31, 2001 were lower
than expected revenues, significant investments in research and development
activities primarily associated with the Company's efforts in developing
digital audio far-field microphone technologies, goodwill and intangible
amortization expense, expenses associated with creating and maintaining
strategic alliances, and significant operating expenses related to marketing
the Company's digital audio far-field microphone technologies, particularly to
the automotive telematics market space. Furthermore, the losses applicable to
common shareholders for the first quarter 2001 include the effect of
approximately $146 thousand in preferred stock dividends.
Quarter Ended
March 31, 2001 March 31, 2000
Total Revenues $2,615,639 $3,201,484
Loss From Operations (2,615,958) (2,489,467)
Net Loss (2,546,487) (2,484,621)
Preferred Stock Dividends 146,285 91,377
Net Loss Applicable To Common Shareholders (2,692,772) (2,575,998)
PER SHARE INFORMATION:
Net Loss Applicable to Common Shareholders
Basic $(.18) $(.19)
Diluted $(.18) $(.19)
Common Shares Used in Computing Per Share Data:
Basic 14,624,788 13,448,588
Diluted 14,624,788 13,448,588
During the first quarter ended March 31, 2001, research and development
expenses decreased approximately 13% over the same period in 2000. This
decrease is due primarily to a reduction in expenses associated with research
efforts that were not integral to the Company's core portfolio of digital
audio far-field microphone technologies. Notwithstanding, the relatively high
level of research and development expenses when compared to total sales is
comprised of the Company's ongoing efforts to develop its digital audio
far-field microphone technologies, including patented and patent-pending
DSDA(R), DFTA(TM), PureAudio(TM) and EchoStop(TM), among others. These
technologies broaden Andrea Electronics' exposure to key targeted industries,
including the automotive telematics and PC communications markets, among
others. Accordingly, the Company anticipates continued significant spending
in research and development during 2001.
During the first quarter ended March 31, 2001, general, administrative and
selling expenses increased approximately 8% over the same period in 2000. The
increase is primarily attributable to operating expenses associated with
marketing the Company's microphone technologies to the automotive telematics
market space.
"Although our first quarter revenue results did not meet expectations, we
remain cautiously optimistic with respect to our annualized revenue goal,"
said Christopher P. Sauvigne, President and Chief Operating Officer of Andrea
Electronics Corporation. "Effective implementation of cost cutting measures
has enabled the Company to mitigate the effect of our first quarter revenue
shortfall."
"We continue to receive favorable feedback on our portfolio of digital
audio technologies, and we are encouraged by the progression of our strategic
alliance efforts, particularly in the automotive telematics market space,"
said John N. Andrea, Co-Chief Executive Officer of Andrea Electronics
Corporation. "In conjunction with these developments, we look forward to our
recently announced relationship with Dain Rauscher Wessels to accelerate the
execution of our growth strategy."
KEY FIRST QUARTER 2001 EVENTS
-- Andrea Electronics Introduces Second Generation Digital AutoArray(TM)
Microphone at the 2001 International Consumer Electronics Show;
-- Andrea Electronics Announces Purchase Agreement With Clever Devices for
Andrea's Microphone Array Technology;
-- Andrea Electronics Corporation Announces Patent Issued For its Digital
Super Directional Array Technology (DSDA(R));
-- Andrea Electronics Corporation Announces Patent Issued For its
Direction Finding and Tracking Array Technology (DFTA(R)).
KEY second QUARTER 2001 EVENT TO DATE
-- Andrea Electronics Retains Dain Rauscher Wessels As Its
Financial Advisor
Andrea Electronics Corporation designs, develops and manufactures audio
technologies and equipment for enhancing applications that require high
performance and high quality voice input. The Company's patented Active Noise
Reduction (ANR READY(R)) earphone, Active Noise Cancellation (ANC) near-field
microphone, patented Digital Super Directional Array (DSDA(R)) and
patent-pending Directional Finding and Tracking Array (DFTA(TM)) far-field
microphone technologies enhance a wide range of audio products to eliminate
background noise and ensure the optimum performance of voice applications.
Applications for the Company's technologies include: speech recognition
programs, Internet telephony, video/audio conferencing, automobile PCs, home
automation systems, hand-held devices and multiplayer online games, among
others. OEM and software publisher customers and strategic partners of Andrea
Electronics' include: IBM Corporation, Intel Corporation, Donnelly
Corporation, BMW of North America, Inc., Clarion Corporation of America,
Microsoft Corporation, Audio-Technica, U.S., Inc., VCON, Ltd., Lotus
Development Corporation, Fonix Corporation, Centra Software, Inc. and
Net2Phone, Inc., among others. Visit Andrea Electronics' websites at
http://www.AndreaElectronics.com and http://www.AudioCommander.com or call
1-800-707-5779.
This press release may contain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. The words
"anticipates," "believes," "estimates," "expects," "intends," "plans,"
"seeks," variations of such words, and similar expressions are intended to
identify forward-looking statements. These statements are not guarantees of
future performance and involve matters that are subject to certain risks,
uncertainties and assumptions that are difficult to predict, including
economic, competitive, governmental, technological and other factors, that may
affect the business and prospects of Andrea Electronics Corporation (the
"Company"). The Company cautions investors about the following significant
factors, which, among others, have in some cases affected the Company's actual
results and are in the future likely to affect the Company's actual results
and could cause them to differ materially from those expressed in any forward-
looking statements: the rate at which Andrea Anti-Noise, DSDA, DFTA and other
Andrea technologies are accepted in the marketplace; the competitiveness of
Andrea Anti-Noise, DSDA, DFTA and other Andrea products in terms of technical
specifications, quality, price, reliability and service; the sufficiency of
the Company's funds for research and development, marketing and general and
administrative expenses; infringement and other disputes relating to patents
and other intellectual property rights held or licensed by the Company or
third parties; and the Company's continuing ability to enter and maintain
collaborative relationships with other manufacturers, software authoring and
publishing companies, and distributors. No assurance can be given that the
Company will achieve any material sales or profits from the products
introduced in this release. These and other similar factors are discussed
under the heading "Cautionary Statement Regarding Forward-looking statements"
included in the Management's Discussion and Analysis of Financial Condition
and Results of Operations in the Company's Annual Report on Form 10-K and in
the Company's Annual Report to shareholders, and in documents subsequently
filed by the Company with the Securities and Exchange Commission.
"Andrea Anti-Noise," "ANR Ready," "DSDA," DSDA-PRO," "DFTA," "SuperBeam,"
"EchoStop," "PureAudio" and "Desktop Array" are trademarks of Andrea
Electronics Corporation or an Andrea Electronics Corporation subsidiary.
ANDREA ELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Quarter Ended
March 31,
2001 2000
NET SALES $2,615,639 $3,201,484
COST OF SALES 1,919,354 2,399,175
Gross profit 696,285 802,309
RESEARCH AND DEVELOPMENT EXPENSES 998,900 1,150,478
GENERAL, ADMINISTRATIVE AND SELLING EXPENSES 2,313,343 2,141,298
Loss from operations (2,615,958) (2,489,467)
OTHER INCOME (EXPENSE):
Interest income 88,723 106,838
Interest expense (15,003) (87,172)
Miscellaneous expense (4,249) (14,820)
69,471 4,846
LOSS BEFORE PROVISION FOR INCOME TAXES (2,546,487) (2,484,621)
PROVISION FOR INCOME TAXES -- --
NET LOSS $(2,546,487) $(2,484,621)
PREFERRED STOCK DIVIDENDS 146,285 91,377
Net LOSS applicable
to common shareholders $(2,692,772) $(2,575,998)
PER SHARE INFORMATION:
Net loss per share :
Basic $(.18) $(.19)
Diluted $(.18) $(.19)
Shares used in computing net loss per share:
Basic 14,624,788 13,448,588
Diluted 14,624,788 13,448,588
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X88141613
SOURCE Andrea Electronics Corporation
MELVILLE, N.Y., May 3 /PRNewswire/ -- Andrea Electronics Corporation
(Amex: AND) announced today that revenues for the three months ended
March 31, 2001 were approximately $2.6 million, compared to approximately
$3.2 million in the same period in 2000. Net loss applicable to common
shareholders for the three months ended March 31, 2001 was approximately
$2.7 million, or $0.18 per share on a diluted basis, compared to a net loss of
approximately $2.6 million, or $0.19 per share on a diluted basis, for the
three months ended March 31, 2000.
The principal factors that contributed to the $2.7 million loss applicable
to common shareholders for the first quarter ended March 31, 2001 were lower
than expected revenues, significant investments in research and development
activities primarily associated with the Company's efforts in developing
digital audio far-field microphone technologies, goodwill and intangible
amortization expense, expenses associated with creating and maintaining
strategic alliances, and significant operating expenses related to marketing
the Company's digital audio far-field microphone technologies, particularly to
the automotive telematics market space. Furthermore, the losses applicable to
common shareholders for the first quarter 2001 include the effect of
approximately $146 thousand in preferred stock dividends.
Quarter Ended
March 31, 2001 March 31, 2000
Total Revenues $2,615,639 $3,201,484
Loss From Operations (2,615,958) (2,489,467)
Net Loss (2,546,487) (2,484,621)
Preferred Stock Dividends 146,285 91,377
Net Loss Applicable To Common Shareholders (2,692,772) (2,575,998)
PER SHARE INFORMATION:
Net Loss Applicable to Common Shareholders
Basic $(.18) $(.19)
Diluted $(.18) $(.19)
Common Shares Used in Computing Per Share Data:
Basic 14,624,788 13,448,588
Diluted 14,624,788 13,448,588
During the first quarter ended March 31, 2001, research and development
expenses decreased approximately 13% over the same period in 2000. This
decrease is due primarily to a reduction in expenses associated with research
efforts that were not integral to the Company's core portfolio of digital
audio far-field microphone technologies. Notwithstanding, the relatively high
level of research and development expenses when compared to total sales is
comprised of the Company's ongoing efforts to develop its digital audio
far-field microphone technologies, including patented and patent-pending
DSDA(R), DFTA(TM), PureAudio(TM) and EchoStop(TM), among others. These
technologies broaden Andrea Electronics' exposure to key targeted industries,
including the automotive telematics and PC communications markets, among
others. Accordingly, the Company anticipates continued significant spending
in research and development during 2001.
During the first quarter ended March 31, 2001, general, administrative and
selling expenses increased approximately 8% over the same period in 2000. The
increase is primarily attributable to operating expenses associated with
marketing the Company's microphone technologies to the automotive telematics
market space.
"Although our first quarter revenue results did not meet expectations, we
remain cautiously optimistic with respect to our annualized revenue goal,"
said Christopher P. Sauvigne, President and Chief Operating Officer of Andrea
Electronics Corporation. "Effective implementation of cost cutting measures
has enabled the Company to mitigate the effect of our first quarter revenue
shortfall."
"We continue to receive favorable feedback on our portfolio of digital
audio technologies, and we are encouraged by the progression of our strategic
alliance efforts, particularly in the automotive telematics market space,"
said John N. Andrea, Co-Chief Executive Officer of Andrea Electronics
Corporation. "In conjunction with these developments, we look forward to our
recently announced relationship with Dain Rauscher Wessels to accelerate the
execution of our growth strategy."
KEY FIRST QUARTER 2001 EVENTS
-- Andrea Electronics Introduces Second Generation Digital AutoArray(TM)
Microphone at the 2001 International Consumer Electronics Show;
-- Andrea Electronics Announces Purchase Agreement With Clever Devices for
Andrea's Microphone Array Technology;
-- Andrea Electronics Corporation Announces Patent Issued For its Digital
Super Directional Array Technology (DSDA(R));
-- Andrea Electronics Corporation Announces Patent Issued For its
Direction Finding and Tracking Array Technology (DFTA(R)).
KEY second QUARTER 2001 EVENT TO DATE
-- Andrea Electronics Retains Dain Rauscher Wessels As Its
Financial Advisor
Andrea Electronics Corporation designs, develops and manufactures audio
technologies and equipment for enhancing applications that require high
performance and high quality voice input. The Company's patented Active Noise
Reduction (ANR READY(R)) earphone, Active Noise Cancellation (ANC) near-field
microphone, patented Digital Super Directional Array (DSDA(R)) and
patent-pending Directional Finding and Tracking Array (DFTA(TM)) far-field
microphone technologies enhance a wide range of audio products to eliminate
background noise and ensure the optimum performance of voice applications.
Applications for the Company's technologies include: speech recognition
programs, Internet telephony, video/audio conferencing, automobile PCs, home
automation systems, hand-held devices and multiplayer online games, among
others. OEM and software publisher customers and strategic partners of Andrea
Electronics' include: IBM Corporation, Intel Corporation, Donnelly
Corporation, BMW of North America, Inc., Clarion Corporation of America,
Microsoft Corporation, Audio-Technica, U.S., Inc., VCON, Ltd., Lotus
Development Corporation, Fonix Corporation, Centra Software, Inc. and
Net2Phone, Inc., among others. Visit Andrea Electronics' websites at
http://www.AndreaElectronics.com and http://www.AudioCommander.com or call
1-800-707-5779.
This press release may contain "forward-looking statements" within the
meaning of the Private Securities Litigation Reform Act of 1995. The words
"anticipates," "believes," "estimates," "expects," "intends," "plans,"
"seeks," variations of such words, and similar expressions are intended to
identify forward-looking statements. These statements are not guarantees of
future performance and involve matters that are subject to certain risks,
uncertainties and assumptions that are difficult to predict, including
economic, competitive, governmental, technological and other factors, that may
affect the business and prospects of Andrea Electronics Corporation (the
"Company"). The Company cautions investors about the following significant
factors, which, among others, have in some cases affected the Company's actual
results and are in the future likely to affect the Company's actual results
and could cause them to differ materially from those expressed in any forward-
looking statements: the rate at which Andrea Anti-Noise, DSDA, DFTA and other
Andrea technologies are accepted in the marketplace; the competitiveness of
Andrea Anti-Noise, DSDA, DFTA and other Andrea products in terms of technical
specifications, quality, price, reliability and service; the sufficiency of
the Company's funds for research and development, marketing and general and
administrative expenses; infringement and other disputes relating to patents
and other intellectual property rights held or licensed by the Company or
third parties; and the Company's continuing ability to enter and maintain
collaborative relationships with other manufacturers, software authoring and
publishing companies, and distributors. No assurance can be given that the
Company will achieve any material sales or profits from the products
introduced in this release. These and other similar factors are discussed
under the heading "Cautionary Statement Regarding Forward-looking statements"
included in the Management's Discussion and Analysis of Financial Condition
and Results of Operations in the Company's Annual Report on Form 10-K and in
the Company's Annual Report to shareholders, and in documents subsequently
filed by the Company with the Securities and Exchange Commission.
"Andrea Anti-Noise," "ANR Ready," "DSDA," DSDA-PRO," "DFTA," "SuperBeam,"
"EchoStop," "PureAudio" and "Desktop Array" are trademarks of Andrea
Electronics Corporation or an Andrea Electronics Corporation subsidiary.
ANDREA ELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
For the Quarter Ended
March 31,
2001 2000
NET SALES $2,615,639 $3,201,484
COST OF SALES 1,919,354 2,399,175
Gross profit 696,285 802,309
RESEARCH AND DEVELOPMENT EXPENSES 998,900 1,150,478
GENERAL, ADMINISTRATIVE AND SELLING EXPENSES 2,313,343 2,141,298
Loss from operations (2,615,958) (2,489,467)
OTHER INCOME (EXPENSE):
Interest income 88,723 106,838
Interest expense (15,003) (87,172)
Miscellaneous expense (4,249) (14,820)
69,471 4,846
LOSS BEFORE PROVISION FOR INCOME TAXES (2,546,487) (2,484,621)
PROVISION FOR INCOME TAXES -- --
NET LOSS $(2,546,487) $(2,484,621)
PREFERRED STOCK DIVIDENDS 146,285 91,377
Net LOSS applicable
to common shareholders $(2,692,772) $(2,575,998)
PER SHARE INFORMATION:
Net loss per share :
Basic $(.18) $(.19)
Diluted $(.18) $(.19)
Shares used in computing net loss per share:
Basic 14,624,788 13,448,588
Diluted 14,624,788 13,448,588
MAKE YOUR OPINION COUNT - Click Here
http://tbutton.prnewswire.com/prn/11690X88141613
SOURCE Andrea Electronics Corporation
Share this article