Full Press Release Details
TO BUSINESS AND TECHNOLOGY EDITORS:
Spatializer Audio Laboratories Inc. Reports Year End Results
SAN JOSE, Calif., March 29 /PRNewswire-FirstCall/ Spatializer Audio Laboratories Inc.
(OTC Bulletin Board: SPAZ) today reported revenues of $1,192,000 for the year ended December
31, 2005 compared to $1,106,000 for the year ended December 31, 2004, an increase of 8%. Net
loss was $81,000 for the year ended December 31, 2005; ($0.00) basic per share, compared to
net loss of $157,000, ($0.00) per share for the year ended December 31, 2004.
Revenues for the fourth quarter ended December 31, 2005 were $161,000, compared to
$495,000 in the prior year, a decrease of 67%. Spatializer reported net loss of ($187,000),
($0.00) per share, for the three months ended December 31, 2005, compared to net income of
$170,000, $0.00 per share, in the prior year.
At December 31, 2005, the Company had $551,000 in cash and cash equivalents as compared
to $871,000 at December 31, 2004. The Company had working capital of $560,000 at December 31,
2005 as compared with working capital of $586,000 at December 31, 2004.
The increase in revenue resulted from a greater recognition of deferred revenue in the
current year, as compared to the prior year, in which a royalty advance was received. In
addition, revenues increased from royalties on a third party semiconductor used in cellular
phones, as compared to the prior year. This was partially offset by declining revenues from
two accounts whose products using our technology reached end of life. Their new models do not
utilize our technology.
The reduction in net loss for the current period is primarily the result of higher
revenue, partially offset by higher overhead.
Spatializer Audio Laboratories Inc. is developer, licensor and marketer of
next-generation audio technologies for the consumer electronics, computing and mobile
communication markets. The company s advanced audio technology is incorporated into consumer
electronics audio and video products, PC and mobile phone handsets from several global brand
leaders. Spatializer stock is traded on the OTC Bulletin Board under the symbol: SPAZ. The
company is headquartered in San Jose, CA, and representative offices throughout the Asia
Pacific region. Further information may be obtained from the company s web site,
www.spatializer.com, Spatializer s SEC filings, and by contacting the company s Investor
Relations Department at 408-453-4180 or by writing to investor@spatializer.com.
Safe Harbor Act Statement Under the Private Securities Litigation Reform Act of 1995:
Certain information in this background news release, including the comments by Mr. Mandell in
this press release 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, loss of key personnel, dependence on new technology and
intellectual property, dependence on the PC and consumer electronics industries, dependence
on product shipments of third-party licensees, dependence on third-party technology
integrators or chip suppliers, competition and pricing pressures, and other risks detailed
from time to time in the company s periodic reports filed with the Securities and Exchange
NOTE: Desper Products Inc. is a wholly owned subsidiary of Spatializer Audio
Laboratories Inc. Spatializer(R) is a registered trademark of Desper Products Inc. All other
trademarks are the property of their respective owners.
SPATIALIZER AUDIO LABORATORIES, INC.
CONSOLIDATED BALANCE SHEETS
| December 31, | December 31, | |||||||
| 2005 | 2004 | |||||||
| ASSETS | ||||||||
| Current Assets: | ||||||||
| Cash and Cash Equivalents | $ | 550,633 | $ | 871,155 | ||||
| Accounts Receivable | 155,233 | 325,712 | ||||||
| Prepaid Expenses and Other Current Assets | 34,104 | 70,940 | ||||||
| Total Current Assets | 739,970 | 1,267,807 | ||||||
| Property and Equipment, Net | 18,403 | 29,527 | ||||||
| Intangible Assets, Net | 138,548 | 166,710 | ||||||
| TOTAL ASSETS | $ | 896,921 | $ | 1,464,044 | ||||
| LIABILITIES AND STOCKHOLDERS EQUITY | ||||||||
| Current Liabilities: | ||||||||
| Notes Payable | 10,443 | 66,252 | ||||||
| Accounts Payable | 14,195 | 71,873 | ||||||
| Accrued Wages and Benefits | 48,095 | 50,446 | ||||||
| Accrued Professional Fees | 34,000 | 20,000 | ||||||
| Accrued Commissions | 31,917 | 32,182 | ||||||
| Accrued Expenses | 40,869 | 32,979 | ||||||
| Deferred Income | 391,395 | |||||||
| Total Current Liabilities | 179,519 | 665,127 | ||||||
| Notes Payable to Related Party, Long Term Commitments and Contingencies | ||||||||
| Series B-1 Redeemable Convertible Preferred Shares, $0.01 par value: | ||||||||
| 1,000,000 shares authorized; 118,351 shares issued and outstanding at December 31, 2004 (liquidation preference of $1,183,510) | 1,182 | |||||||
| Stockholders Equity (Deficit): | ||||||||
| Common shares, $0.01 par value; 65,000,000 shares authorized; 48,763,383 and 46,975,363 shares issued and outstanding at December 31, 2005 and 2004, respectively | 469,772 | 469,754 | ||||||
| Additional Paid-In Capital | 46,430,030 | 46,428,866 | ||||||
| Accumulated Deficit | (46,182,400 | ) | (46,100,885 | ) | ||||
| Total Shareholders Equity | 717,402 | 797,735 | ||||||
| Total Liabilities and Shareholders Equity | $ | 896,921 | $ | 1,464,044 |
SPATIALIZER AUDIO LABORATORIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Year Ended December 31,
| 2005 | 2004 | 2003 | ||||||||||
| Revenues: | ||||||||||||
| Royalty Revenues | $ | 1,192,447 | $ | 1,105,923 | $ | 1,269,286 | ||||||
| Cost of Revenues | 106,062 | 111,395 | 122,417 | |||||||||
| 1,086,385 | 994,528 | 1,146,869 | ||||||||||
| Operating Expenses: | ||||||||||||
| General and Administrative | 670,124 | 615,412 | 811,024 | |||||||||
| Research and Development | 354,138 | 393,004 | 458,940 | |||||||||
| Sales and Marketing | 152,473 | 137,889 | 360,692 | |||||||||
| 1,176,735 | 1,146,305 | 1,630,656 | ||||||||||
| Operating Income (Loss) | (90,350 | ) | (151,777 | ) | (483,787 | ) | ||||||
| Interest Income | 13,230 | 4,982 | 7,201 | |||||||||
| Interest Expense | (5,269 | ) | (10,295 | ) | (13,447 | ) | ||||||
| 7,961 | (5,313 | ) | (6,246 | ) | ||||||||
| Income (Loss) Before Income Taxes | (82,389 | ) | (157,090 | ) | (490,033 | ) | ||||||
| Income Taxes | 874 | (400 | ) | (5,420 | ) | |||||||
| Net Income (Loss) | $ | (81,515 | ) | $ | (157,490 | ) | $ | (495,453 | ) | |||
| Basic and Diluted Income (Loss) per Share: | $ | (.00 | ) | $ | (.00 | ) | $ | (.01 | ) | |||
| Weighted-Average Shares Outstanding | 46,990,059 | 46,975,363 | 47,309,171 |
SOURCE Spatializer Audio Laboratories Inc.
/CONTACT: investors, Henry R. Mandell, Chairman, of Spatializer Audio Laboratories, Inc.,
1-408-453-4180, ext. 201, or investor@spatializer.com/
/Web site: http://www.spatializer.com/