ParkerVision Reports Third Quarter 2004 Results; SignalMAX Wireless Products Available Nationwide in Major Stores JACKSONVILLE, Fla.--(BUSINESS WIRE)--Nov. 9, 2004--PARKERVISION, INC. (Nasdaq NMS: PRKR), announced today its financial results for the third quarter ended September 30, 2004. The operating results represent the Company's wireless division, which is currently its only business segment, subsequent to the Company's divestiture of its video division which closed in the second quarter.
For the three and nine month periods ended September 30, 2004, ParkerVision reported net revenues of approximately $96,000 and $516,000, respectively. The Company reported no revenue from continuing operations for the same periods in 2003. The net loss from continuing operations for the third quarter was ($5.0 million), or ($.28) per share compared to ($4.8 million), or ($.31) per share in 2003. The year to date net loss from continuing operations was ($12.9 million), or ($.72) per share compared to ($13.8 million), or ($.92) per share for the same period in 2003.
The Company reported a net loss from discontinued operations of ($81,000), or ($0.00) per share for the quarter ended September 30, 2004, compared to a net loss of ($.8 million), or ($.05) per share for the same period in 2003. For the nine month period ended September 30, 2004, the Company reported a net gain from discontinued operations of $7.7 million, or $.43 per share compared to a net loss of ($2.5 million), or ($.16) per share for the same period in 2003.
Chairman and CEO Jeffrey L. Parker commented, "We have made good progress in the quarter towards increasing the presence of our high-performance consumer products in the retail channel, starting with the recently announced national rollout of our SignalMAX? wireless LAN products at CompUSA. We began shipping products in mid-September and we are now focused on and committed to driving our top-line through effective training of CompUSA's sales force and other strategic marketing initiatives. Early indications have been encouraging and we expect to be able to report increased revenues in the next quarter as the products sell through the retail channels. We exited the quarter with $540,000 in deferred revenues compared to $58,000 in the prior quarter. This represents products currently in the distribution/retail channel.
Discussions, demos, and product evaluations with other specialty retailers about our high performance wireless networking products continued in the third quarter, and are still underway. Since September 30 we have announced the addition of Micro Center, J&R Music & Computer World, and Nebraska Furniture Mart. Each of these retailers is now selling ParkerVision's SignalMAX? wireless products. Micro Center, with 20 locations nationwide and an average of 45,000 square feet per location, has the most square footage per store devoted exclusively to computers and computer-related items of any retailer; J&R is a full New York City block of 250,000 square feet of retail space dedicated to consumer electronics and entertainment. We will continue to add other retail and e-tail outlets and would expect to see accelerating revenues for the balance of this year and into next.
We also remain on schedule to begin the initial production of our cordless phone product using our D2D? technology in the fourth quarter, and we are in various stages of discussions with retailers, distributors, and other Value Added Resellers (VAR's) regarding the distribution of these high-performance 2-mile range cordless phones. We would expect a commercial rollout of our first telephone products to begin in the first quarter of 2005.
We have made considerable progress in expanding our product line and adding new applications for our patent-protected technology. We will soon be in production with our WiFi MiniPCI products, and D2D? based 802.11g offerings. All the benefits that D2D has brought to the 802.11b standard will be duplicated in our upcoming 802.11g and "n" products. Our digital D2D architecture, which replaces legacy analog RF mixers, overcomes many of the current limitations of the traditional circuitry. The expertise we have developed in replacing traditional analog circuits with digital circuit architectures will prove to be a growing strength and competitive advantage as ParkerVision expands its reach beyond replacing the up and down converters in our transceivers.
The management team additions that we made in the quarter should also enable us to execute our planned transition from an R&D company to a consumer products manufacturer. We've brought on talented and experienced professionals to assume the roles of Vice President of Strategic Planning and Business Development, Vice President of Engineering, and Director of Retail Sales. We're looking forward to the exciting opportunities that lie ahead at ParkerVision."
About ParkerVision
ParkerVision, Inc., headquartered in Jacksonville, with additional facilities in Orlando, Florida, designs, develops and manufactures complete solutions for wireless products based on the enabling, patented D2D? technology. This technology, along with the system engineering, enables the development of competitively priced wireless products that offer the highest performance and reliability while consuming low power. Additional information about ParkerVision is available at www.parkervision.com.
Safe Harbor Statement
This press release contains forward-looking information. Readers are cautioned not to place undue reliance on any such forward-looking statements, each of which speaks only as of the date made. Such statements are subject to certain risks and uncertainties which are disclosed in the Company's SEC reports, including the Form 10K for the year ended December 31, 2003 and the Forms 10Q for the quarters ended March 31, 2004, June 30, 2004 and September 30,2004. These risks and uncertainties could cause actual results to differ materially from those currently anticipated or projected.
Summary of Results of Operations
(unaudited)
in thousands (except for per share amounts)
Three Months Ended Nine Months Ended
Sept. 30, Sept. 30,
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2004 2003 2004 2003
------- ------- ------- -------
Revenue, net $ 96 $ 0 $ 516 $ 0
Cost of Goods Sold 83 0 213 0
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Gross Margin 13 0 303 0
Research and Development 2,785 3,411 8,160 10,306
Marketing and Selling 622 291 1,361 636
General and Administrative 1,669 1,070 3,839 3,122
Loss on disposal of property
and equipment 0 84 0 84
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Total Operating Expense 5,076 4,856 13,360 14,148
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Interest and other income 56 64 156 367
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Loss from continuing
operations (5,007) (4,792) (12,901) (13,781)
Net gain (loss) from
discontinued operations (81) (835) 7,709 (2,453)
------- ------- ------- -------
Net income (loss) $(5,088) $(5,627) $ (5,192)$(16,234)
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Basic and Diluted Loss per
Common Share
Continuing operations $ (0.28) $ (0.31) $ (0.72) $ (0.92)
Discontinued operations $ (0.00) $ (0.05) $ 0.43 $ (0.16)
------- ------- ------- -------
Total $ (0.28) $ (0.36) $ (0.29) $ (1.08)
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Balance Sheet Highlights
Sep 30, 2004 Dec 31,
(unaudited) 2003
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Current Assets $22,749 $26,309
Property and Equipment, Net 3,678 4,860
Other Assets, Net 11,064 11,314
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Total Assets $37,491 $42,483
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Current Liabilities $3,107 $3,084
Shareholders' Equity 34,384 39,399
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Total Liabilities and Shareholders'
Equity $37,491 $42,483
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CONTACT: ParkerVision, Inc.
Investor Relations:
Carolyn Wrenn, 888-690-7110
cwrenn@parkervision.com
or
Public Relations:
MRB Public Relations, Inc.
Michael Becce, 732-758-1100 x102
mbecce@mrb-pr.com
SOURCE: ParkerVision, Inc.