Spatializer Revenues Up, Net Loss Also Increases

Woodland Hills, CA. Spatializer Audio Laboratories today announced financial results for its third quarter of fiscal 1996, ended September 30, 1996. Revenues were $472,200 (U.S.), an increase of 76 percent over the third quarter of fiscal 1995. The company reported a net loss of $1,101,700 for the quarter, compared to a net loss of $849,822 a year earlier.

Spatializer reported that nine new OEM licensees were added during the quarter, bringing the total to 44 chip licensees. Also, nine new game developers signed up for the company’s Spatializer 3-D MAP™ positional audio enhancement software for Windows® ’95. The increase in licensing reflects both a new “bundled” licensing arrangement with Matsushita Electric Co., and a favorable ruling by the courts in a long-standing patent litigation with QSound Labs, Inc.

“The uncertainty and costs associated with twenty-two months of patent litigation are at long last behind us,” said Steven D. Gershick, President and CEO of Spatializer. “We have already begun to see very positive and immediate effects of this resolution in both substantial licensee growth and increased Spatializer chip sales. [also] we have seen our R&D investment begin to bear fruit during the quarter with the introduction of our N22™ Digital Virtual Surround™ technology for multi-channel discrete digital audio systems for DVD/DVD-ROM and home theater markets.”