I think I am going to watch Monday morning and see if i can grab it a cent or 2 less than todays close. But at .269 ask I believe this stock is a certain for sure winner of 20-30% given a couple weeks maybe less maybe more. The stock is oversold and always releases PRs timely since they actually are doing something unlike a lot of these bb stocks. Just look at the people they do business with, Mid and Large Cap NYSE and Nasdaq companies.
Fonix Announces 2003 Results; Company Files 2003 10-K and Consolidated Pro Forma Audited Financial Statements Including LecStar Acquisition
Fonix Corp. (OTC BB: FNIX), an industry leader in delivering conversational speech solutions to consumer systems and devices for everyday use through its Fonix speech group, and a provider of telephone and data services through its new subsidiaries LecStar Telecom Inc. and LecStar DataNet (LecStar), announces financial results for the year ended Dec. 31, 2003.
Fonix revenues were $2,384,000 for the year ended Dec. 31, 2003 compared to $3,065,000 in 2002. Operating expenses decreased by $8,820,000 from $21,267,000 in 2002 to $12,447,000 in 2003. Net loss was $13,543,000 ($0.50 per common share) in 2003 compared to $19,898,000 million ($1.73 per common share) in 2002.
The consolidated pro forma Fonix revenue -- including the LecStar revenue -- for the year ended Dec. 31, 2003 was $18,243,000. Pro forma net loss was $21,748,000 million ($0.68 per common share).
"While Fonix fell short of its 2003 revenue targets, we have taken significant steps this past year to improve our business strategy and build an organization that can ensure a positive revenue trend in 2004," said Thomas A. Murdock, Fonix chairman and CEO. "We are ready to capitalize on the acquisition of LecStar by delivering outstanding telephone and data services to its customers, and the Fonix speech group continues to offer new speech solutions in video games, mobile/wireless devices and embedded speech interfaces on semiconductor chips. We have significantly reduced and streamlined operations. We believe these actions will provide new market and revenue opportunities and allow Fonix to benefit from the impressive partnerships and agreements formed in 2003 with companies like Seiko Epson, Sony Computer Entertainment, Electronic Arts and Oracle."
License and royalty revenues increased from $1,846,000 in 2002 to $1,963,000 in 2003. The total revenue decrease was due primarily to changes in the DECtalk product; elimination of the DECtalk hardware component resulted in a decline in DECtalk hardware sales of $319,000 and reduced the cost of goods sold by approximately $190,000. Also, as the company garnered more unit royalty license fees, the number of non-recurring engineering contracts decreased $479,000 from 2002 to 2003.
"During 2003, Fonix took important steps to build a solid business model for future growth," said Roger D. Dudley, Fonix executive vice president and CFO. "We focused on improving operations to increase efficiency, better manage our costs and create new revenue-producing opportunities. We remain enthusiastic about the Fonix speech group's market position and opportunities for success going forward. Fonix is well-positioned to grow by offering its award-winning technology to leading names in wireless devices, entertainment games platforms and telephony solutions, while benefiting from the built-in customer base, recurring revenue stream and marketing channels of LecStar, its new subsidiary."
-- Fonix reduces operating costs by 41 percent.
-- Fonix acquires LecStar Telecom Inc., a growing Atlanta-based regional provider of integrated communications services to businesses and consumers.
-- Fonix signs a multi-year licensing agreement with Electronic Arts to deliver its award-winning voice command solution to EA's worldwide community of game developers.
-- Fonix joins Sony Computer Entertainment's Tools & Middleware Program to offer voice command and recognition to PlayStation(R)2 game developers.
-- Two Microsoft Xbox games incorporate Fonix voice command solution: Tom Clancy's Rainbow Six 3, published by Ubisoft, and SWAT: Global Strike Team, published by Vivendi Universal Games. Rainbow Six 3 wins "Best Innovation" award for implementation of Fonix voice control.
-- Fonix and Seiko Epson form partnership to deliver Fonix speech recognition on Epson's powerful microprocessors.
-- Meridian licenses Fonix technology for Midwestern voice-enabled 511 traffic information systems.
-- Fonix joins Oracle Partner Network to work on distributed speech solutions in the server-based end-to-end market.
-- Fonix joins Symbian Platinum Program to support the emerging market for Symbian OS advanced mobile phones.
-- Microsoft awards Fonix VoiceDial "Best Solution" for Microsoft 2002 Smartphone.
Fonix Corp. is an industry leader in delivering conversational speech solutions to consumer systems and devices for everyday use. Manufacturers and developers incorporate Fonix's award-winning technology to provide their customers with an easy, convenient, and reliable user experience. Fonix currently offers voice technology for mobile/wireless devices, computer telephony systems, the assistive market and automobiles. Fonix recently acquired LecStar Telecom Inc., a rapidly growing Atlanta-based regional provider of integrated communications services to businesses and consumers. LecStar offers a full array of wireline voice, data, long distance and Internet services to business and residential customers throughout BellSouth's Southeastern operating territory. LecStar's solid customer base offers a unique direct marketing and distribution channel for Fonix speech technologies and solutions. Visit www.fonix.com for an introduction to Fonix's complete suite of speech solutions, or contact a Fonix representative at 801-553-6600 and say "Sales."
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[This message has been edited by brandwilliams (edited April 16, 2004).]