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MELVILLE,
N.Y., March 1 /PRNewswire/ -- Andrea Electronics Corporation (Amex:
AND) announced today that revenues for the year ended December 31,
2000 were approximately $15.6 million, compared to approximately
$17.1 million in calendar 1999. Net loss applicable to common shareholders
for the year ended December 31, 2000 was approximately $9.9 million,
or $0.72 per share on a diluted basis, versus net loss applicable
to common shareholder of approximately $7.4 million, or $0.56 per
share on a diluted basis, for the year ended December 31, 1999.
For the fourth quarter ended December 31, 2000, revenues were approximately
$3.9 million, versus $3.8 million in the same period in 1999. Net
loss applicable to common shareholders for the three months ended
December 31, 2000, was approximately $2.7 million, or $0.19 per
share on a diluted basis, compared to a net loss applicable to common
shareholders of approximately $2.1 million, or $0.16 per share on
a diluted basis, for the three months ended December 31, 1999.
The principal factors that contributed to the $2.7 million loss
applicable to common shareholders for the fourth quarter ended December
31, 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
and intangible 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
losses applicable to common shareholders for the fourth quarter
2000 and the year ended December 31, 2000 include the effect of
approximately $139 thousand and $351 thousand, respectively, in
preferred stock dividends.
Quarter Ended Twelve Months Ended
12/31/00 12/31/99 12/31/00 12/31/99
Total Revenues $3,866 $3,798 $15,568 $17,112
Loss From Operations (2,670) (2,035) (9,779) (7,151)
Net Loss (2,568) (2,018) (9,574) (7,177)
Preferred Stock Dividend 139 93 351 196
Net Loss Applicable to
Common Shareholders (2,707) (2,111) (9,926) (7,373)
PER SHARE INFORMATION:
Net Loss Applicable to
Common Shareholders
Basic (0.19) (0.16) (0.72) (0.56)
Diluted (0.19) (0.16) (0.72) (0.56)
Common Shares Used in
Computing Per Share
Data
Basic 13,885,942 13,242,538 13,748,945 13,229,559
Diluted 13,885,942 13,242,538 13,748,945 13,229,559
During the year ended December 31, 2000, research and development
expenses increased approximately 40% over the same period in 1999.
For the fourth quarter ended December 31, 2000, research and development
expenses increased approximately 21% over the same period in 1999.
These significant increases are due to the Company's continuing
efforts to develop 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 during 2001.
"Results
for 2000 summarize a period during which Andrea significantly invested
in future opportunities", said Richard A. Maue, Chief Financial
Officer of Andrea Electronics Corporation. "We will proceed with
investments in research and development activities that are focused
on introducing revenue-generating microphone products and technologies,
with emphasis on developments that will enable broad acceptance
across mobile communications and desktop PC platforms."
"As
a result of the unpredictable nature of the value creation cycle
associated with our digital audio technology strategic alliances,
we have taken significant steps to minimize our future needs for
external capital by reducing our cost structure and focusing on
predictable, targeted sales growth from our long-standing, core
business segments," said Christopher P. Sauvigne, President and
Chief Operating Officer of Andrea Electronics Corporation. "Although
we have yet to recognize the potentially significant financial rewards
associated with our ongoing digital audio technology efforts, based
on the progress of our efforts to establish key automotive strategic
alliances and our recently announced success with BMW, we remain
confident in our ability to drive shareholder value."
KEY FOURTH QUARTER 2000 EVENTS
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Andrea Electronics Introduces Second Generation Digital AutoArray(TM)
Microphone at the 2001 International Consumer Electronics Show;
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Andrea Electronics Corporation Adds Sophisticated Voice Extraction
Processing Algorithm to Its Menu of Digital Audio Enhancing
Technologies;
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BMW of North America Purchases Andrea Electronics' Microphone
Array For Use With Hands-Free Digital Phone Application in BMW
Z8 Sports Car.
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 ELECTRONICS CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Years Ended December 31,
2000 1999 1998
NET SALES $15,567,664 $17,112,487 $21,304,570
COST OF SALES 11,279,649 11,908,751 14,178,871
Gross profit 4,288,015 5,203,736 7,125,699
RESEARCH AND DEVELOPMENT
EXPENSES 4,752,449 3,399,666 2,016,684
GENERAL, ADMINISTRATIVE AND
SELLING EXPENSES 9,314,692 8,954,805 13,002,959
Loss from operations (9,779,126) (7,150,735) (7,893,944)
OTHER INCOME (EXPENSE):
Interest income 416,393 246,882 233,346
Interest expense (233,880) (306,843) (710,324)
Rent and miscellaneous
income 22,261 33,703 1,924,967
204,774 (26,258) 1,447,989
LOSS BEFORE PROVISION FOR
INCOME TAXES (9,574,352) (7,176,993) (6,445,955)
PROVISION FOR INCOME TAXES -- -- --
Net loss (9,574,352) (7,176,993) (6,445,955)
PREFERRED STOCK DIVIDENDS 351,209 195,843 --
Net loss attributable to
common shareholders $(9,925,561) $(7,372,836) $(6,445,955)
PER SHARE INFORMATION
Net Loss Per Share -
Basic and Diluted $(.72) $(.56) $(.61)
Shares used in computing net
loss per share -
Basic and Diluted 13,748,945 13,229,559 10,614,237
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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