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MELVILLE, N.Y., Aug. 2 /PRNewswire/ -- Andrea Electronics Corporation
(Amex: AND) announced today that revenues for the three months ended
June 30, 2001 were approximately $2.6 million, versus $3.2 million
in the same period in 2000. Net loss applicable to common shareholders
for the three months ended June 30, 2001, was approximately $2.5
million, or $0.17 per share on a diluted basis, compared to a net
loss applicable to common shareholders of approximately $2.5 million,
or $0.18 per share on a diluted basis, for the three months ended
June 30, 2000. For the six months ended June 30, 2001, the Company
reported a net loss applicable to common shareholders of approximately
$5.2 million, or $0.35 per share on a diluted basis, compared to
a net loss applicable to common shareholders of $5.1 million, or
$0.37 per share.
The principal factors that contributed to the $2.5 million loss
applicable to common shareholders for the second quarter ended June
30, 2001, continue to be 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 loss applicable
to common shareholders for the three months ended June 30, 2001
includes the effect of approximately $144 thousand in preferred
stock dividends.
Quarter Ended
June 30, 2001 June 30, 2000
Total Revenues $2,617,929 $3,181,268
Loss From Operations (2,444,968) (2,527,636)
Net Loss (2,367,680) (2,476,013)
Preferred Stock Dividend 143,613 60,410
Net Loss Applicable To Common Shareholders (2,511,293) (2,536,423)
PER SHARE INFORMATION:
Net Loss Applicable to Common Shareholders
Basic $(.17) $(.18)
Diluted $(.17) $(.18)
Common Shares Used in Computing Per Share Data:
Basic 14,778,121 13,821,885
Diluted 14,778,121 13,821,885
During the second quarter ended June 30, 2001, research and development
expenses decreased approximately 19% over the same period in 2000.
This decrease, consistent with the first quarter 2001, 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 this decrease,
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. Accordingly,
the Company anticipates continued significant spending in research
and development during the second half of 2001.
"We
continue to make progress with the integration of our digital audio
technologies in the telematics market, and we are excited about
our recently announced relationships with IBM and Net2Phone for
our digital audio technology product offerings," said Christopher
P. Sauvigne, President and Chief Operating Officer of Andrea Electronics
Corporation.
Mr. Sauvigne continued, "Although our Aircraft Communications and
Digital Audio Technology segments are exceeding their revenue growth
targets, a weakening economy coupled with increasing competitive
factors continue to negatively impact our Anti-Noise product line
and, therefore, overall revenue targets. We have embarked upon an
aggressive plan to expand into the call center market space in an
effort to diversify our Anti-Noise product line customer-base, and
we continue to pursue cost reduction efforts to conserve our existing
cash position."
KEY SECOND QUARTER 2001 EVENTS
KEY THIRD QUARTER 2001 EVENT TO DATE
-
Andrea Electronics Corporation Expands Into Internet Telephony
With Echostop(TM) Technology
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Andrea Electronics' Customized USB Laptop Array Microphone Available
for Use With IBM's ThinkPad Computers
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Andrea Electronics Corporation Named Recipient Of Industry-Wide
Technology Award
About Andrea Electronics
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, Clever Devices, Ltd., 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;
the Company's continuing ability to enter and maintain collaborative
relationships with other manufacturers, software authoring and publishing
companies, and distributors; the emergence of new competitors in
the marketplace; the Company's ability to compete successfully against
established competitors with greater resources; the uncertainty
of future governmental regulation; the Company's ability to obtain
additional funds; and general economic conditions. 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 Three Months Ended For the Six Months Ended
June 30, June 30,
2001 2000 2001 2000
NET SALES $2,617,929 $3,181,268 $5,233,568 $6,382,752
COST OF SALES 1,872,758 2,366,353 3,792,112 4,765,528
Gross profit 745,171 814,915 1,441,456 1,617,224
RESEARCH AND
DEVELOPMENT EXPENSES 881,384 1,089,194 1,880,284 2,239,672
GENERAL, ADMINISTRATIVE
AND SELLING EXPENSES 2,308,755 2,253,357 4,622,098 4,394,655
Loss from operations (2,444,968) (2,527,636) (5,060,926) (5,017,103)
OTHER INCOME (EXPENSE):
Interest income 79,212 116,554 167,935 223,392
Interest expense (32,062) (65,011) (47,065) (152,183)
Other 30,138 80 25,889 (14,740)
77,288 51,623 146,759 56,469
LOSS BEFORE PROVISION
FOR INCOME TAXES (2,367,680) (2,476,013) (4,914,167) (4,960,634)
PROVISION FOR INCOME TAXES -- -- -- --
Net loss $(2,367,680) $(2,476,013) $(4,914,167) $(4,960,634)
PREFERRED STOCK
DIVIDENDS 143,613 60,410 289,898 151,787
Net loss applicable
to common
shareholders $(2,511,293) $(2,536,423) $(5,204,065) $(5,112,421)
PER SHARE INFORMATION:
Net Loss Per Share:
Basic $(.17) $(.18) $(.35) $(.37)
Diluted $(.17) $(.18) $(.35) $(.37)
Shares used in computing net loss per share:
Basic 14,778,121 13,821,885 14,701,878 13,635,237
Diluted 14,778,121 13,821,885 14,701,878 13,635,237
SOURCE: Andrea Electronics Corporation
CONTACT: Richard A. Maue, Chief Financial Officer, or Lauren Rivera,
Marketing Communications Manager, both of Andrea Electronics, +1-800-442-7787/
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