SRS Labs Posts Profit For First Time In 10 Consecutive Quarters

[J.A.F._Doorhof]

SRS Labs, Inc. reported financial results for the second fiscal quarter ended June 30, 2002, and posted a profit for the first time in 10 consecutive quarters. Excluding revenue from the component distribution business, which the Company is strategically exiting, second quarter 2002 revenue increased $583,265 or 18 percent versus the second quarter of 2001. Consolidated revenue including the component distribution business declined by $816,015 in the second quarter 2002 versus the comparable prior year period. The Company continued to improve consolidated gross margin to 72.3 percent compared to 51.8 percent for the second quarter of 2001. This improvement is primarily the result of the company's exiting the component distribution business.

For the second quarter ended June 30, 2002, the Company reported revenues of $4,028,360, with earnings of $204,553 compared to the second quarter 2001 revenues of $4,844,375 and a net loss of $979,888. For the six months ended June 30, 2002, the company reported revenues of $7,583,740, with a net loss of $486,177, compared to the same prior year period of $9,175,256 in revenues and net loss of $2,545,422. The Company's cash position improved by $687,331 from the year ended Dec. 31, 2001 with cash, cash equivalents and investments totaling $20.3 million for the six months ended June 30, 2002.

Thomas C. K. Yuen, chairman and CEO of SRS Labs said, "Our return to profitability is an important milestone for SRS Labs. W e are pleased to have achieved this goal. We now can leverage our business model which focuses on high margin, high volume and high growth businesses, and build upon this momentum to further improve our bottom line results and enhance shareholder value."

CONTACT:
http://www.srslabs.com