JACKSONVILLE, Fla.--(BUSINESS WIRE)--Aug. 8, 2005--PARKERVISION, INC. (Nasdaq NMS: PRKR), a developer and marketer of semiconductor technology solutions for wireless applications, today reported net product revenue of $122,000 for the second quarter ended June 30, 2005, compared to $64,000 for the second quarter ended June 30, 2004. The net loss from continuing operations during the current quarter, including charges incident to the exit from retail activities, was ($10.2 million), or ($0.49) per share, compared to ($3.9 million), or ($0.22) per share in 2004.
For the six month period ended June 30, 2005, ParkerVision reported total revenues of $294,000, compared to $360,000 for the corresponding period in 2004. The year to date net loss from continuing operations was ($15.7 million) or ($0.80) per share compared to ($7.9 million) or ($0.44) per share for the six months ended June 30, 2004.
Both the three and six month 2005 periods include approximately $4.7 million in charges related to the company's previously announced exit from retail business activities. These charges consist of employee termination costs, impairment charges related to intangibles and other fixed assets and charges to reduce inventories to their net realizable value. Approximately 85% of these charges are non-cash.
The company's video division was sold in May 2004 and the three and six month periods ended June 30, 2004 include net income from discontinued video operations of $9.2 million, or $0.51 per share and $7.8 million or $0.43 per share, respectively.
Chairman and CEO Jeffrey L. Parker commented, "This past quarter we announced our plans to exit our retail business activities and focus exclusively on OEM business opportunities as a pure play fabless semiconductor company. We have recently completed technology demonstrations with prospective customers and the feedback we have received thus far confirms that our decision to focus our capital and human resources on the OEM business model was the right strategic move at the right time. Our exit from retail activities allows us to focus all of our resources on significant opportunities for our wireless technologies with a much better leverage point for attaining revenue growth, improved product margins and profitability.
We ended the quarter with approximately $19 million in cash and short term investments. We are pleased to report that our cash used in operating activities this past quarter was $3.1 million, down from $4.8 million in the first quarter of 2005. Excluding the termination benefits to be paid in the third quarter of 2005, we anticipate our rate of cash usage will continue at lower than historical rates as a result of narrowing our focus to the OEM business model."
The company will host a live broadcast of its second quarter 2005 financial results via conference call on Monday August 8th at 4:30 pm. Eastern time. The conference call will be accessible by telephone at 866-578-5784 or 617-213-8056, with the passcode of 718-55473 and participants are advised to dial-in at least five minutes before the scheduled start time. The replay of the conference call will be available for seven days by telephone at 888-286-8010 or 617-801-6888, passcode 67014141 and accessible by webcast via the Internet at www.parkervision.com for a period of 90 days.
About ParkerVision
ParkerVision, Inc. is headquartered in Jacksonville, Fla. with additional facilities in Orlando, Fla. The company designs, develops and manufactures complete semiconductor technology solutions for wireless products based on their patent portfolio of enabling digital RF technologies: D2D? and D2P?. 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 D2P, Direct to RF power?, products provide improved signal performance, power efficiency, and design cost to manufacturers of wireless RF products. 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 and the Forms 10Q for the quarters ended March 31, 2005 and June 30, 2005. 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)
unaudited
Three Months Ended Six Months Ended
June 30, June 30,
--------------------- ---------------------
2005 2004 2005 2004
---------- ---------- ---------- ----------
Revenue, net $ 122 $ 64 $ 294 $ 359
Cost of goods sold 134 81 396 129
Write down of inventory to
net realizable value 2,250 0 2,250 0
---------- ---------- ---------- ----------
Gross margin (2,262) (17) (2,352) 230
---------- ---------- ---------- ----------
Research and development
expenses 3,192 2,399 6,114 5,376
Marketing and selling
expense 1,283 416 2,272 678
General and administrative
expenses 1,806 1,135 3,334 2,170
Impairment loss and loss on
disposal of property and
equipment 1,871 0 1,880 0
---------- ---------- ---------- ----------
Total operating expenses 8,152 3,950 13,600 8,224
---------- ---------- ---------- ----------
Interest and other income 223 46 257 100
---------- ---------- ---------- ----------
Loss from continuing
operations (10,191) (3,921) (15,695) (7,894)
Net gain from discontinued
operations 0 9,179 0 7,790
---------- ---------- ---------- ----------
Net (loss) income $ (10,191) $ 5,258 $ (15,695) $ (104)
========== ========== ========== ==========
Basic and diluted net loss
per common share
Continuing operations $ (0.49) $ (0.22) $ (0.80) $ (0.44)
Discontinued
operations 0.00 0.51 0.00 0.43
Total $ (0.49) $ 0.29 $ (0.80) $ (0.01)
========== ========== ========== ==========
Balance Sheet Highlights (in thousands)
June 30, Dec 31,
2005 2004
(unaudited)
----------- -----------
Cash, cash equivalents and short term
investments $ 18,906 $ 7,798
Accounts and other receivables 371 1,588
Inventories, net 404 2,626
Prepaid expenses and other current assets 1,503 1,782
----------- -----------
Total current assets 21,184 13,794
Property and Equipment, net 2,377 3,373
Other Assets, net 9,139 10,914
----------- -----------
Total Assets 32,700 $ 28,081
=========== ===========
Current Liabilities 3,287 3,323
Shareholders' Equity 29,413 24,758
----------- -----------
Total Liabilities and Shareholders'
Equity $ 32,700 $ 28,081
=========== ===========
CONTACT: ParkerVision, Inc.
Carolyn Wrenn (IR), 888-690-7110
cwrenn@parkervision.com
or
Cameron Associates
Paul Henning, 212-245-8800
paul@cameronassoc.com
SOURCE: ParkerVision, Inc.