Circuit Research Labs Inc. Reports Record Profit for Quarter Ended June 30, 2005
August 19 2005 - 4:01PM
Business Wire
Circuit Research Labs Inc.'s (OTCBB: CRLI) -- listed no. 192 on
Deloitte's Technology Fast 500 in North America -- earnings for the
three and six months ended June 30, 2005, were approximately
$2,619,000 and $2,438,000, respectively, compared to a net loss of
$264,000 and a net loss of $301,000 for the same periods in 2004.
The increase for the three and six months ended is due to
restructuring the company's loans with Harman International
Industries Inc. (NYSE: HAR) announced October 12, 2004, where the
company was able to record approximately $2,043,000 of income. The
increase was also due, in part, to the increased operational profit
attributable to the increase in net sales. In exchange for
restructuring its debt owed by the company, we issued common stock
representing approximately 19% of our total shares to Harman Pro
North America Inc. The restructure will allow the company to save
approximately $824,000 in interest annually. Operating revenue for
the three and six months ended June 30, 2005, was $612,000 and
$712,000, respectively, compared to $22,000 and $276,000 for the
same periods in 2004. The change is primarily attributed to the
increase in sales along with the company's ability to keep costs
down as a percentage of sales, which is due in part to the variable
component of operating expenses associated with the manufacturing
of its products. For the three and six months ended June 30, 2005,
the company will report net sales of approximately $4.4 million and
$7.6 million, respectively, compared to $3.1 million and $6.4
million for the same periods in 2004 reflecting an increase of 42%
and 19%, respectively. The increases were primarily attributed to
the introduction of the company's newest flagship product,
Optimod-FM 8500, in January 2005, along with increased overall
demand in its higher-end FM processors. Charles Jayson Brentlinger,
the company's president and chief executive officer, commented,
"Finally! Patience and perseverance have prevailed, allowing us to
generate a profit for the company. I feel this sets the stage for a
healthier, more stable financial environment." Robert McMartin,
vice president and chief financial officer, continued, "With the
restructure behind us, we can now focus on broadening our market
and providing our customers with even better service. We can now
work toward refining our operations to meet future demands."
Circuit Research Labs Inc. Forward-Looking Statements This news
release may contain "forward-looking" statements within the meaning
of the Private Securities Litigation Reform Act of 1995.
Management's anticipation of future events is based upon
assumptions regarding levels of competition, research and
development results, raw material markets, the markets in which the
company operates, and stability of the regulatory environment. Any
of these assumptions could prove inaccurate; and therefore, there
can be no assurance that the forward-looking information will prove
to be accurate. About Circuit Research Labs Inc. Circuit Research
Labs Inc. is a manufacturer of high-quality digital and analog
audio processing, transmission encoding, and noise reduction
equipment. Circuit Research Labs Inc. now accounts for the majority
of the global market for radio, TV and Internet audio processing.
As technology evolves, Circuit Research Labs continues to innovate
with state-of-the-art audio processing products for DAB, DTV and
streaming media. The company purchased Orban(R) in May of 2000.
Orban was founded in 1970 by Bob Orban, who is the world's foremost
expert in transmission audio processing for broadcast. Orban leads
the industry in the design and manufacture of audio processors for
radio, television and Internet broadcasting. Recognized for its
standard-setting Optimod(R) digital audio processors and the
Opticodec(R) codecs, the Orban name has become synonymous with
reliable, high-performance products. Today, its versatile audio
processing equipment and codecs are the products of choice in
fast-paced production environments worldwide. For more information,
contact David Rusch at phone: 480-403-8300, fax: 480-403-8301, or
e-mail: drusch@orban.com. Information is also available at
www.orban.com and www.orban-europe.com.
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