JACKSONVILLE, Fla., Nov 02, 2006 (BUSINESS WIRE) -- ParkerVision, Inc. (Nasdaq NMS: PRKR), a developer and marketer of semiconductor technology solutions for wireless applications, announced a net loss for the third quarter ended September 30, 2006 of $3.8 million, or $.16 per share compared to a net loss of $3.9 million or $.19 per share during the third quarter of 2005.
For the nine month period ended September 30, 2006, ParkerVision reported a net loss of $12.5 million, or $0.54 per share, compared to a net loss of $19.6 million, or $0.97 per share for the same period in 2005.
The company has reported no revenue for the first three quarters of 2006, having exited the retail business in June 2005 to concentrate on introducing its wireless technology into the OEM marketplace. Revenue from retail product sales for the comparable 2005 period was $0.7 million.
The company's operating expenses for the first nine months of 2006 were $13.2 million, representing a $4.5 million, or 25% decrease from the same period in 2005. This decrease is primarily due to savings resulting from exiting the retail business activities and narrowing the company's focus to OEM sales activities. The decrease was somewhat offset by a $1.3 million increase in stock-based compensation due to the adoption on January 1, 2006 of Statement of Financial Accounting Standard No. 123(R), "Share-Based Payment," which requires the recognition of compensation expense based on the estimated fair value of stock options granted to employees.
The company's use of cash in operating and investing activities was $9.4 million for the first three quarters of 2006 compared to $13.4 million for the same period in 2005 and the company ended the quarter with $17.3 million in cash and cash equivalents.
Chairman and Chief Executive Officer, Jeffrey Parker commented, "We are extremely pleased with the progress of our OEM discussions in recent months and remain confident that our efforts will result in consummation of our first relationships in the near term. The feedback we are receiving from our potential business partners indicates that our d2p technology enables performance goals that the mobile handset industry is actively striving to achieve."
The company will host a live broadcast of its third quarter 2006 financial results via conference call on November 2, 2006 at 4:30 PM Eastern time. The conference call will be accessible by telephone at (866) 550-6338 (no passcode required) 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) 203-1112 or (719) 457-0820 using passcode 3468662 and accessible by webcast via the Internet at www.parkervision.com for a period of 90 days.
About ParkerVision
ParkerVision is focused on the commercialization of its proprietary RF communication technologies that enable significant advancements in wireless products and services. These technologies are described collectively as Energy Signal Processing (ESP(TM)). ESP optimally processes RF waveform energy, eliminating costly and inefficient circuit processes inherent in traditional RF designs.
ParkerVision's solutions will initially address key needs for extended battery life, reduced cost and higher performance in mobile handsets as the cellular industry migrates to next generation networks. The company's extended business strategy targets additional market opportunities in communications and networking where it can leverage its ESP technologies for products and services in an increasingly wireless world. (PRKR-I)
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, 2005 and the Forms 10Q for the quarters ended March 31, 2006, June 30, 2006 and September 30, 2006. 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 per share amounts)
Three months
ended Nine months ended
September 30, September 30,
----------------- -------------------
2006 2005 2006 2005
-------- -------- --------- ---------
Product revenue $ - $ 430 $ - $ 725
Cost of goods sold - 339 - 734
Writedown of inventory to net
realizable value - - - 2,251
-------- -------- --------- ---------
Gross margin - 91 - (2,260)
-------- -------- --------- ---------
Research and development 2,273 2,188 7,361 8,302
Marketing and selling 514 562 1,591 2,835
General and administrative 1,265 1,387 4,205 4,721
Impairment loss and (gain) on
disposal of property and
equipment (7) (6) (7) 1,874
-------- -------- --------- ---------
Total operating expense 4,045 4,131 13,150 17,732
-------- -------- --------- ---------
Interest and other income 258 138 700 395
-------- -------- --------- ---------
Net loss $(3,787) $(3,902) $(12,450) $(19,597)
======== ======== ========= =========
Basic and diluted loss per common
share $ (0.16) $ (0.19) $ (0.54) $ (0.97)
======== ======== ========= =========
Balance Sheet Highlights (unaudited)
(in thousands)
September 30, December 31,
2006 2005
------------- ------------
Cash and short term investments $17,302 $10,569
Other current assets 896 1,696
Property and equipment, net 2,202 1,868
Other assets, net 10,074 9,699
------------- ------------
Total assets $30,474 $23,832
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Current liabilities $ 1,877 $ 1,427
Deferred rent 517 5
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Total liabilities 2,394 1,432
Shareholders' equity 28,080 22,400
------------- ------------
Total liabilities and shareholders'
equity $30,474 $23,832
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SOURCE: ParkerVision, Inc.
Cameron Associates Paul Henning, 212-245-8800 paul@cameronassoc.com or ParkerVision, Inc. Carolyn Wrenn, 888-690-7110 cwrenn@parkervision.com