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MELVILLE,
N.Y., Nov. 2 /PRNewswire/ -- Andrea Electronics Corporation (Amex:
AND) announced today that revenues for the three months ended September
30, 2000 were approximately $5.3 million, versus $4.3 million in
the same period in 1999. Net loss applicable to common shareholders
for the three months ended September 30, 2000, was approximately
$2.1 million, or $0.15 per share on a diluted basis, compared to
a net loss of approximately $1.8 million, or $0.13 per share on
a diluted basis, for the three months ended September 30, 1999.
For the nine months ended September 30, 2000, the Company reported
net revenues of approximately $11.7 million, compared to $13.3 million
in the first nine months of 1999. For the nine months ended September
30, 2000, the Company reported a net loss applicable to common shareholders
of approximately $7.2 million, or $0.53 per share on a diluted basis,
compared to a net loss of $5.3 million, or $0.40 per share.
The principal factors that contributed to the $2.1 million loss
applicable to common shareholders for the third quarter ended September
30, 2000 continue to be significant investments in research and
development activities primarily associated with the Company's efforts
in developing digital audio far-field microphone technologies, goodwill
amortization expense, promotional/advertising activities, expenses
associated with creating and maintaining strategic alliances, and
significant operating expenses related to marketing the Company's
digital audio far-field microphone technologies. Furthermore, the
loss applicable to common shareholders for the three months ended
September 30, 2000 includes the effect of approximately $61 thousand
in preferred stock dividends.
Quarter Ended
September 30, September 30,
2000 1999
Total Revenues $ 5,318,936 $ 4,326,098
Loss From Operations (2,092,278) (1,681,747)
Net Loss (2,045,438) (1,656,086)
Preferred Stock Dividend 60,577 94,097
Net Loss Applicable To Common Shareholders (2,106,015) (1,750,183)
PER SHARE INFORMATION:
Net Loss Applicable to Common Shareholders
Basic $0.15 $0.13
Diluted $0.15 $0.13
Common Shares Used in Computing
Per Share Data:
Basic 13,836,893 13,235,908
Diluted 13,836,893 13,235,908
During the third quarter ended September 30, 2000, research and
development expenses increased approximately $500 thousand, or 67%
over the same period in 1999. This significant increase is due to
the Company's continuing efforts to develop its digital audio far-field
microphone technologies, including patented and patent-pending DSDA(R),
DFTA(TM), PureAudio(TM) and EchoStop(TM), as well as the Company's
USB technologies. These technologies broaden Andrea Electronics'
exposure to key targeted industries, including the automotive and
PC communications markets, among others. As such, the Company anticipates
continued significant spending in research and development throughout
the remainder of the year and into 2001.
"Today
Andrea has achieved a significant milestone in its automotive strategy,"
said John N. Andrea, Co-Chairman and Co-Chief Executive Officer
of Andrea Electronics Corporation. "We have received our first purchase
order from a global automotive OEM, the significance of which not
only validates our microphone array technology, but clearly demonstrates
that Andrea is recognized as a key player in the telematics marketplace."
"We
are pleased to report a 67% sequential growth in revenues, due primarily
to sales of our recently introduced USB microphone and USB connectivity
solutions for IBM's growing family of ViaVoice products," said Richard
A. Maue, Chief Financial Officer of Andrea Electronics Corporation.
"We will continue to significantly invest in research and development
activities in order to continue introducing new, revenue-generating
microphone products and technologies, with emphasis on our digital
audio technologies, in anticipation of needs from existing and future
customers."
"While
we are proud to report the successful introduction of new products
and related incremental revenue for the third quarter, we are equally
pleased by the advancement and expansion of our strategic alliances
as well as the successful reengineering of our sales and marketing
team," said Christopher P. Sauvigne, President and Chief Operating
Officer of Andrea Electronics Corporation. "As a result of these
developments, we remain extremely confident in our ability to execute
our strategic plan, achieve our objectives and enhance shareholder
value."
KEY THIRD QUARTER 2000 EVENTS
-
Andrea Electronics' New USB Adapter Ships With IBM ViaVoice(R)
For Windows
-
Andrea Electronics Announces New Patent Issued For Active Noise
Reduction Technologies
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Andrea Electronics Awarded Patent For Noise Canceling Acoustic
Improvement to Communications Devices (Microacoustics(TM))
-
Andrea Electronics Launches USB Far-Field Array Microphone At
Intel Developers Forum
-
Andrea Electronics' New NC-7100 USB Headset Ships with IBM ViaVoice(R)
for Macintosh, Enhanced Edition
KEY FOURTH QUARTER 2000 EVENTS TO DATE
-
Andrea Electronics Endorsed by Centra to Provide High Quality
PC Audio Products to Broad Base of Fortune 1000 Customers
-
Andrea Electronics Announces New, World-Class Sales and Marketing
Team
-
Andrea Electronics Develops Audio Technology For Use With Microsoft's
Speech Toolkit Version 5.0
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Andrea Electronics' Microphone Selected by Ford For Inclusion
In Demonstration Vehicles At Convergence 2000
-
Andrea Electronics Announces $7.5 Million Equity Private Placement
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, Symbol Technologies, Inc., Clarion Corporation of America,
Microsoft Corp., Lernout & Hauspie, Audio Technica, J. D'Addario
& Co., Lotus Development Corporation, Fonix Corporation, HearMe.com,
InterWise, Inc., ILINC, Logitech, Inc., Net2Phone, Voyetra Turtle
Beach and ZeroPlus.com, among others. Visit Andrea Electronics'
website at http://www.AndreaElectronics.com or call 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"
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 Three Months For The Nine Months
Ended Ended
September 30, September 30,
2000 1999 2000 1999
NET SALES $5,318,936 $4,326,098 $11,701,688 $13,314,312
COST OF SALES 3,772,311 2,953,516 8,537,839 9,244,906
Gross profit 1,546,625 1,372,582 3,163,849 4,069,406
RESEARCH AND
DEVELOPMENT
EXPENSES 1,249,167 747,848 3,488,839 2,352,585
GENERAL,
ADMINISTRATIVE AND
SELLING EXPENSES 2,389,736 2,306,481 6,784,391 6,832,961
Loss from
operations (2,092,278) (1,681,747) (7,109,381) (5,116,140)
OTHER INCOME
(EXPENSE):
Interest income 62,263 107,731 285,655 181,481
Interest expense (41,055) (82,070) (193,238) (224,407)
Other 25,632 -- 10,892 --
46,840 25,661 103,309 (42,926)
LOSS BEFORE
PROVISION
FOR INCOME TAXES (2,045,438) (1,656,086) (7,006,072) (5,159,066)
PROVISION FOR
INCOME TAXES -- -- -- --
Net loss $(2,045,438) $(1,656,086) $(7,006,072) $(5,159,066)
PREFERRED STOCK
DIVIDENDS 60,577 94,097 212,364 102,622
Net loss applicable
to common
shareholders $(2,106,015) $(1,750,183) $(7,218,436) $(5,261,688)
PER SHARE INFORMATION:
Net Loss Per Share:
Basic $(.15) $(.13) $(.53) $(.40)
Diluted $(.15) $(.13) $(.53) $(.40)
Shares used in
computing net loss
per share:
Basic 13,836,893 13,235,908 13,702,946 13,225,185
Diluted 13,836,893 13,235,908 13,702,946 13,225,185
SOURCE: Andrea Electronics Corporation
CONTACT: At Andrea Electronics - Richard A. Maue, Chief Financial
Officer, or Lauren Smith, Marketing Communications Manager, 800-442-7787/
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