SANTA ANA, Calif. -- SRS Labs Inc. here said it expects 2002 revenues to grow 20-to-25% over 2001, resulting in "moderate profitability" for the supplier of surround sound and other audio technologies used in digital signal processing (DSP) systems and entertainment products.
"We completed the realignment of our three operating units to focus on a 'back to basics' P&L approach," said Thomas Yuen, chairman and CEO of SRS Labs. "We believe that we are now positioned to benefit from this hard work and the new relationships we established in 2001."
The company said it will report financial results based on three operating units: SRS Labs, which handles licensing of products; ValenceTech Ltd., which sells ASIC chips; and SRSWOWcast Technologies, which deals in Internet and broadcast applications.
"Consistent with our new focus and commencing with the fiscal year, ended 2001, the company will report financial information corresponding to its three operating units," Yuen said. "This reporting breakout of our three operating units will better assist our investors in understanding SRS Labs' various business operations and will enable the investment community to more clearly monitor the progress of eachoperating unit.
"Our focus for 2002 includes a new corporate communications campaign, which we have already started to implement to promote our brand name and to increase awareness of the company," added the chief executive officer.
ValenceTech has launched development programs aimed at introducing new embedded custom ICs, which use SRS technology but serve applications not presently addressed by the company's clients.
For the first nine months of 2001, SRS Labs reported $12.7 million in revenues, a 42% decline from $21.8 million the same period in 2000. The company reported a net loss of $3.3 million in the first nine months last year vs. a loss of $9.7 million in the first three quarters of 2000.