JACKSONVILLE, Fla.--(BUSINESS WIRE)--March 17, 2005--PARKERVISION, INC. (Nasdaq NMS: PRKR), a developer and marketer of semiconductor technology solutions for wireless applications, announced today its financial results for the fourth quarter and full year ended December 31, 2004. The company's operating results reflect the divestiture of the video division that is classified as discontinued operations.
Net revenues for the year ended December 31, 2004 were $441,000 compared to $23,000 in 2003. Revenues in 2004 are net of approximately $233,000 in channel marketing costs. The company reported a net loss for the year of ($14.8 million) or ($0.82) per share compared to a net loss of ($22.0 million) or ($1.43) per share in 2003. The 2004 net loss was partially offset by a gain of $7.8 million, or $0.43 per share from the sale of discontinued operations. This compares to a net loss from discontinued operations of ($3.4 million), or ($0.22) per share in 2003.
For the quarter ended December 31, 2004, ParkerVision reported net revenues of approximately $19,000 compared to $23,000 for the same period in 2003 and a net loss for the fourth quarter of ($9.6 million) or ($0.53) per share compared to ($5.8 million) or ($0.35) per share in the prior year's same quarter. For the fourth quarter, discontinued operations contributed $0.07 million, or $0.0 per share compared to a net loss of ($0.9 million), or ($.06) per share for the comparable quarter in 2003.
Due to certain non-recurring expenses, the net loss from continuing operations for the fourth quarter was ($9.7 million), or ($.53) per share compared to ($4.9 million), or ($.29) per share in 2003. The year's net loss from continuing operations was ($22.6 million), or ($1.25) per share compared to ($18.6 million), or ($1.21) per share for the full year's period in 2003.
In the fourth quarter of 2004, the company recorded a reduction to the carrying value of its inventories of $2.8 million, primarily related to the write-down of certain 802.11b inventories to their respective net realizable values. This adjustment was largely the result of the company's decision to lower the retail-selling price on its current product line in November 2004.
Chairman and CEO Jeffrey L. Parker commented, "2004 was a very important year of transition for ParkerVision, as we continued to execute on our plan to divest our video broadcast business and focus our resources exclusively on commercializing our proprietary high-performance RF technology. Our relationship with CompUSA factored well into our ability to put our SignalMAX? wireless networking products into approximately 300 retail storefronts, as we continued to announce additional reseller arrangements with other high quality retailers and etailers such as MicroCenter, ABC Warehouse, Amazon.com, Target.com, J&R, Datavision, and RCS Experience.
In January, we announced a family of digital RF power amplifiers that leverages the core science of the D2D? technology to leapfrog existing analog implementations of RF power amplification. With this technology, we will enable OEM and ODM customers to enjoy the benefit of improved signal performance, power efficiency, and design cost. In support of this effort, we recently announced our selection of IBM Microelectronics, an industry leader in semiconductor technologies and foundry services, to manufacture our advanced digital power amplifier technology, and we're looking forward to working with them."
The company has also been developing its next generation of D2D-enabled, wireless networking products for residential and commercial users based on the 802.11g wireless standard. A cordless phone product that incorporates its D2D transceivers is expected to be available for sampling to potential channel partners in the second quarter. Both products are designed to achieve longer distances and better reliability than typical consumer solutions.
About ParkerVision
ParkerVision, Inc. is headquartered in Jacksonville, Fla. with additional facilities in Orlando, Fla. The company designs, develops and manufactures complete semiconductor system solutions for wireless products based on the enabling, patented D2D? technology. D2D, which is applicable to all wireless applications, utilizes digital radio circuitry that eliminates the negative attributes inherent to products that use legacy analog processes. The company's new RF power amplifier products provide improved signal performance, power efficiency, and design cost to manufacturers of wireless RF products. ParkerVision also offers wireless networking products that incorporate the D2D technology to provide superior reliability, distance, and interference immunity and are available at select national and regional retail partner locations. 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, 2004. These risks and uncertainties could cause actual results to differ materially from those currently anticipated or projected.
Summary of Results of Operations in thousands (except for per share amounts) Three Months Full Year Ended Ended Dec. 31, Dec. 31, ----------------- ------------------- 2004 2003 2004 2003 -------- -------- --------- --------- Revenue, net $19 $23 $441 $23 Cost of Goods Sold 314 30 526 30 Write down of inventory to net realizable value 2,769 0 2,769 0 -------- -------- --------- --------- Gross Margin (3,064) (7) (2,854) (7) -------- -------- --------- --------- Research and Development 3,262 3,012 11,423 13,317 Marketing and Selling 1,217 364 2,484 1,000 General and Administrative 2,206 1,581 6,044 4,703 Loss on disposal of property and equipment 0 0 0 84 -------- -------- --------- --------- Total Operating Expense 6,685 4,957 19,951 19,104 -------- -------- --------- --------- Interest and other income 62 109 217 476 -------- -------- --------- --------- Loss from continuing operations (9,687) (4,855) (22,588) (18,635) Net gain (loss) from discontinued operations 65 (926) 7,773 (3,380) -------- -------- --------- --------- Net income (loss) $(9,622) $(5,781) $(14,815) $(22,015) ======== ======== ========= ========= Basic and Diluted Loss per Common Share Continuing operations $(0.53) $(0.29) $(1.25) $(1.21) Discontinued operations 0.00 (0.06) 0.43 (.22) Total $(0.53) $(0.35) $(0.82) $(1.43) ======= ======== ========= ======= Balance Sheet Highlights Dec. 31, Dec. 31, 2004 2003 ----------- ---------- Current Assets $13,794 $26,309 Property and Equipment, net 3,373 4,860 Other Assets, net 10,914 11,314 ----------- ---------- Total Assets $28,081 $42,483 =========== ========== Current Liabilities $3,323 $3,084 Shareholders' Equity 24,758 39,399 ----------- ---------- Total Liabilities and Shareholders' Equity $28,081 $42,483 =========== ==========
CONTACT: ParkerVision, Inc. Carolyn Wrenn (IR), 888-690-7110 cwrenn@parkervision.com or Cameron Associates Peter Seltzberg, 212-554-5487 peter@cameronassoc.com or Keating & Co. Vicki Banner, 973-966-1100 vbanner@keatingco.com SOURCE: ParkerVision, Inc.