The Guitammer Company Announces First Quarter 2014 Results
May 15, 2014 --
WESTERVILLE, OH(eTeligis Inc.)
WESTERVILLE, OH, United States, via eTeligis Inc., 05/15/2014 - - The Guitammer Company (OTCQB:GTMM) (OTCBB: GTMM), a leader in tactile and haptic broadcast technology and creator of the award-winning line of ButtKicker(R)-brand low frequency audio transducers that provide an immersive entertainment experience for audiences, announced today its results for the first quarter ended March 31, 2014.
2014 First Quarter Financial Highlights and Selected Recent Developments
-Revenue was $311,052 for the three months ended March 31, 2014, compared to revenue of $525,427 for the three months ended March 31, 2013, a decrease of 40.8%.
-The Company's revenues decreased primarily due to its decision to allocate a relatively greater amount of its resources from working capital related to deliveries of its consumer product to the development of its patented broadcast technology. The Company's backlog at March 31, 2014 was approximately $100,000 compared to virtually no backorders at March 31, 2013 and December 31, 2013, respectively.
-Gross margin increased to 46.2% for the three months ended March 31, 2014, compared to 41.6% for the three months ended March 31, 2013.
-Guitammer has continued the development and deployment of its haptic-tactile broadcast technology for live sports broadcasts with a series of successful integration and broadcast tests on a regional sports network with a U.S. major sports franchise. The Company's original live broadcast success was in the fourth quarter of 2013 with the National Hot Rod Association's broadcast on ESPN2.
-The Company announced it has engaged Noble Financial Capital Markets as its corporate advisor. Noble is a research-driven investment bank focused on emerging growth companies in the energy, healthcare, technology and media & entertainment sectors.In its advisory capacity, Noble will render strategic advice and assistance in connection with the Company's current and future capital structure as well as assist in raising additional capital when required.
Commenting on the Company's results, Mark Luden, President of Guitammer said, "Last year and during the first quarter of 2014, we invested considerable capital resources implementing and commercializing our patented haptic tactile broadcast technology for the ESPN2 broadcasts of the National Hot Rod Association (NHRA) proving that we have the ability to bring the actual feel of live sporting events to sports fans while watching in the comfort of their own homes.We have continued the development and deployment of our broadcast technology with the completion of a series of successful integration and broadcast tests with a regional sports network and a major U.S. sports franchise.We expect to have further announcements about this important development in the coming months.Because of our focus on the broadcast technology, the Company experienced a shortage of available working capital required to fund certain inventory requirements related to its existing consumer products business and this had a corresponding negative effect on revenues for the quarter.However, we firmly believe that the further development and implementation of our broadcast technology will produce the greatest amount of long term value for our shareholders and will help us to secure the financing needed to fully execute our business plan."
About The Guitammer Company The Guitammer Company, based in Westerville, Ohio, is a leader in low frequency sound products and broadcast technology.The Guitammer Company's patented broadcast technology "ButtKicker Live!(R)or ŘD Sports powered by ButtKicker" enables the excitement, impact and feeling of live sporting events to be broadcast along with the sound and video, and puts the viewer into the action, whether at home or at the event.ŘD Sports powered by ButtKicker" technology is available for cable, satellite, fiber optic, IPTV and over-the-air broadcasts. For more information seewww.guitammer.com/4Dsports. ButtKicker(R) and ButtKicker Live!(R) are registered trademarks of The Guitammer Company.
The Company's innovative and award-winning line of patented ButtKicker-brand low frequency audio transducers let users feel low-frequency sound (bass). ButtKicker brand products are used around the world by leading entertainment and theater companies such as AMC Theatres, Alamo Drafthouse, IMAX, Disney and Lumiere Pavilions in movie theaters and attractions; by world-famous musicians; and in home theaters, by consumers for video games, simulators and car audio.
ButtKicker brand products are distributed by Pearl Drums for musicians under the trade name, "Pearl's Throne Thumper by ButtKicker".ButtKicker brand products' patented design makes them musically accurate, powerful and virtually indestructible.
For additional information on The Guitammer Company and detailed product information, visitwww.guitammer.comandwww.shakemycouch.com.To like our Facebook page or follow us on Twitter for company updates, visitwww.facebook.com/Guitammerandwww.twitter.com/Guitammer
Safe Harbor: This letter contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby.Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the ability of the Company to successfully implement its turnaround strategy, changes in costs of raw materials, labor, and employee benefits, as well as general market conditions, competition and pricing.Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this letter will prove to be accurate.In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as representation by the Company or any other person that the objectives and plans of the Company will be achieved.In assessing forward-looking statements included herein, readers are urged to carefully read those statements. When used in the Annual Report on Form 10-K, the words "estimate," "anticipate," "expect," "believe," and similar expressions are intended to be forward-looking statements.
- financial tables follow -
For More Information Contact: MediaThe Guitammer Company(614) 898-9370 email@example.com
SOURCE: The Guitammer Company
http://www.eteligis.com/ViewSubmission.aspx?submissionRequest=26063 - Link to submission on http://www.eteligis.com