SANTA ANA, Calif., Feb. 23 /PRNewswire-FirstCall/ -- SRS Labs, Inc. (Nasdaq: SRSL), the industry leader in surround sound, audio and voice technologies, reported financial results for the fourth quarter and fiscal year ended December 31, 2009.
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Fourth Quarter and Fiscal 2009 Results
Revenues in the fourth quarter 2009 increased 43% to $7.0 million from $4.9 million in the same period a year ago. For the full year 2009, revenues increased 36% to a record $25.0 million from $18.3 million in 2008. The increase was primarily attributable to increased revenues in the home entertainment, personal telecommunications and personal computer markets.
Operating expenses in the fourth quarter increased 34% to $6.4 million from $4.8 million in the same quarter a year ago. For the full year 2009, operating expenses increased 19% to $22.8 million from $19.1 million in 2008. The increase was primarily attributable to the continued investment in additional sales, marketing and engineering infrastructure.
Net income in the fourth quarter increased 244% to $473,000 or $0.03 per diluted share, an improvement from a net income of $137,000 or $0.01 per diluted share in the fourth quarter of 2008. For the full year 2009, net income increased 688% to $2.1 million or $0.14 per diluted share, from $271,000 or $0.02 per diluted share in 2008.
Quarter-end cash and cash equivalents, and short-term and long-term investments totaled $41.5 million as of December 31, 2009, as compared to $40.3 million at the end of the prior quarter.
Management Commentary
"2009 was a milestone year for SRS Labs," said Thomas C.K. Yuen, SRS Lab's chairman and CEO. "The investments we made in 2008 and 2009 provided the resources to build a substantial infrastructure to execute our strategic growth plan. These resources allowed us to develop new technologies, drive branding initiatives, and deploy a professional customer-focused sales team. From an operational perspective, we achieved what we set out to accomplish: strong top-line growth, diversification of our revenue and customer base, margin expansion, and penetration of key high growth target markets.
"Based upon the growth and results we achieved in 2009, we expect to continue to invest in our infrastructure as we grow revenues and expand market share. Based on our current business conditions and expectations, we expect revenues for the fiscal year 2010 to exceed a 25% annual growth rate. We also remain focused on continued operating margin expansion."
Conference Call
SRS Labs will hold a conference call later today (February 23, 2010) to discuss these fourth quarter and fiscal 2009 financial results. Chairman and CEO Thomas C.K. Yuen, CFO Ulrich Gottschling, VP of Marketing Allen Gharapetian, and VP of Global Sales Jeff Klaas will host the call starting at 5:00 p.m. Eastern time. A question and answer session will follow management's presentation.
Dial-In Number: 866-206-7204
Conference ID#: 1428801
Please call the conference telephone number 5-10 minutes prior to the start time. An operator will register your name and organization and instruct you to wait until the call begins. If you have any difficulty connecting with the conference call, please contact the Liolios Group at 949-574-3860.
Investors may also listen to the conference call live online via a link available on the SRS Labs investor relations home page at www.srslabs.com.
The website will host a replay of the call available after 8:00 p.m. Eastern time. Investors may also listen to the replay by dialing 1-866-837-8032 and entering conference ID#: 1428801, available until March 18, 2010.
About SRS Labs, Inc.
Founded in 1993, SRS Labs is the industry leader in audio signal processing for consumer electronics. Beginning with the audio technologies originally developed at Hughes Aircraft, SRS Labs holds over 150 worldwide patents and is recognized by the industry as the foremost authority in research and application of audio post processing technologies based on the human auditory principles. Through partnerships with leading global CE companies, semiconductor manufacturers and software partners, SRS is recognized as the de facto standard in audio enhancement, surround sound, volume leveling and voice processing technologies. SRS solutions have been included in over one billion electronic products sold worldwide including flat panel HDTVs, STBs, mobile phones, portable media devices, PCs and automotive entertainment. SRS Labs supports its partners around the globe with a network of offices in regions including the U.S., China, Europe, Japan, Korea and Taiwan. For more information, visit www.srslabs.com. Visit SRS Labs' blog at www.soundingoff.srslabs.com, on Facebook at www.facebook.com/srslabs or on Twitter at www.twitter.com/srslabs.
Safe Harbor Statement
This press release includes forward-looking statements that are based on our current expectations, estimates and projections about SRS Labs, Inc., management's beliefs and certain assumptions made by us, and events beyond our control, all of which are subject to change. Such forward-looking statements include, but are not limited to, statements relating to our future growth opportunities, competitive position, expansion and investment plans, and operating results and profitability. Forward-looking statements can often be identified by words such as "expects," "anticipates," "intends," "plans," "predicts," "believes," "seeks," "estimates," "may," "will," "should," "would," "could," "likely," "potential," "continue," similar expressions, and variations or negatives of these words. These forward-looking statements are not guarantees of future results or the commitments made by us herein, and they are subject to risks, uncertainties and assumptions that could cause actual results to differ materially and adversely from those expressed in any forward-looking statement. The risks and uncertainties referred to above include, but are not limited to, the loss of any significant customer; the acceptance of new SRS Labs products and technologies; our ability to increase our brand awareness and enter into new or expanded license arrangements; the impact of competitive products and pricing; general economic and business conditions that may adversely impact sales of consumer products incorporating our technologies or that otherwise may impact our operating results and future performance; the timely development and release of technologies by the Company; and such other factors described in our filings with the Securities and Exchange Commission. The forward-looking statements in this press release speak only as of the date they are made. We do not undertake any obligation to revise or update publicly any forward-looking statement for any reason.
Company Contacts: |
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Ulrich Gottschling |
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Chief Financial Officer |
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SRS Labs, Inc. |
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Tel 949-442-5596 |
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Matt Glover |
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Investor Relations |
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Liolios Group, Inc. |
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Tel 949-574-3860 |
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SRS LABS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED BALANCE SHEETS
December 31, December 31,
2009 2008
----------- -----------
ASSETS
Current Assets
Cash and cash equivalents $27,988,164 $31,599,087
Accounts receivable, net 179,114 332,711
Prepaid expenses and other
current assets 1,147,151 864,095
Short-term investments 12,963,000 7,836,000
---------- ---------
Total Current Assets 42,277,429 40,631,893
Long-term investments 538,000 -
Property and equipment, net 599,794 423,921
Intangible assets, net 2,702,160 2,354,725
Deferred income taxes, net 5,631,442 3,471,421
--------- ---------
Total Assets $51,748,825 $46,881,960
=========== ===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities
Accounts payable $583,157 $314,382
Accrued liabilities 1,577,891 996,268
Deferred revenue 1,193,454 1,802,024
--------- ---------
Total Current Liabilities 3,354,502 3,112,674
Commitments and contingencies
Stockholders' Equity
Preferred stock-$0.001 par
value; 2,000,000 shares
authorized; no shares
issued and outstanding - -
Common stock-$0.001 par
value; 56,000,000 shares
authorized; 14,563,715 and
14,419,418 shares issued
and outstanding at December 31,
2009 and 2008, respectively 14,565 14,420
Additional paid-in capital 65,128,337 62,639,075
Accumulated deficit (16,748,579) (18,884,209)
----------- -----------
Total Stockholders' Equity 48,394,323 43,769,286
---------- ----------
Total Liabilities and
Stockholders' Equity $51,748,825 $46,881,960
=========== ===========
SRS LABS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Year Ended
December 31, December 31,
------------------- -------------------
2009 2008 2009 2008
---- ---- ---- ----
Revenues $6,974,921 $4,894,114 $24,964,577 $18,332,678
Cost of sales 83,512 55,056 285,543 143,481
------ ------ ------- -------
Gross margin 6,891,409 4,839,058 24,679,034 18,189,197
Operating expenses*:
Sales and
marketing 3,325,852 2,273,596 11,415,115 9,220,098
Research and
development 1,662,063 1,082,736 5,721,195 3,942,635
General and
administrative 1,439,570 1,422,597 5,656,616 5,913,081
--------- --------- --------- ---------
Total operating
expenses 6,427,485 4,778,929 22,792,926 19,075,814
--------- --------- ---------- ----------
Operating income
(loss) 463,924 60,129 1,886,108 (886,617)
Interest Income 67,985 181,503 347,528 1,275,047
------ ------- ------- ---------
Income before
income taxes 531,909 241,632 2,233,636 388,430
Income taxes 58,843 104,311 98,006 117,543
------ ------- ------ -------
Net income $473,066 $137,321 $2,135,630 $270,887
======== ======== ========== ========
Net income per common
share:
Basic $0.03 $0.01 $0.15 $0.02
Diluted $0.03 $0.01 $0.14 $0.02
Weighted average
shares used
in the per share
calculation:
Basic 14,683,587 15,023,946 14,460,490 15,588,815
Diluted 15,239,624 15,217,760 14,813,372 15,842,336
*Included in Q4 2009 total operating expenses, is stock-based compensation
expense of $525,717; $129,580 in sales and marketing, $123,696 in research
and development, and $272,441 in general and administrative expenses.
Included in Q4 2008 total operating expenses, is stock-based compensation
expense of $435,035; $77,003 in sales and marketing, $104,946 in research
and development, and $253,086 in general and administrative expenses.
SOURCE SRS Labs, Inc.
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