WESTERVILLE, OH, United States, via ETELIGIS INC., 11/14/2014 – – The Guitammer Company (OTCQB: GTMM), the leader in haptic-tactile broadcast technology and creator of the award-winning line of ButtKicker®-brand low frequency audio transducers that provide an immersive entertainment experience for audiences, announced today its results for the Third quarter ended September 30, 2014.
2014 Third Quarter Financial Highlights and Selected Recent Developments:
– Revenue was $633,789 for the nine months ended September 30, 2014, compared to revenue of $1,300,671 for the nine months ended September 30, 2013, a decrease of 51.3%.
– The Company’s revenues decreased primarily due to its decision to allocate a relatively greater amount of its financial and human resources from the deliveries of its consumer products to the development of its patented broadcast technology. The Company’s backorders at September 30, 2014 were approximately $375,000 compared to virtually no backorders at September 30, 2013 and December 31, 2013 respectively.
– Gross margin increased to 45.9% for the nine months ended September 30, 2014 from 40% for the nine months ended September 30, 2013.
– As of November 13, 2014, the Company has raised $409,525 through the exercise of warrants by current stock holders.
– The Company shipped ButtKicker brand products for three new AMC Prime Theatre locations for a deployment of more than 700 4D powered by ButtKicker enabled seats; and received a purchase order from Lumiere Pavilions’ in China for ButtKicker brand products for more than 225 additional “4D powered by ButtKicker” seats for a cinema in Huaian, PRC.
– The Company, the San Jose Sharks (“the Sharks”) NHL hockey team and Comcast SportsNet California (“CSNCA”) executed a “Letter Agreement Regarding Technology Initiative” to integrate Guitammer’s broadcast technology in SAP Center at San Jose and into the CSNCA’s telecasts of the San Jose Sharks home games at SAP Center for the 2014/15 NHL season, and to collectively promote and market the enhanced broadcast to the Sharks’ and CSNCA’s viewers.
Commenting regarding the Quarter’s results, Richard Conn, CFO of Guitammer, said, “Because of our focus on our patented broadcast technology, the Company experienced a shortage of available working capital required to fund certain inventory requirements related to its existing consumer products business for the first three quarters of 2014. Because of our recent success in raising needed capital and based on our current backorder volume, we expect significant improvement in our sales numbers in the 4th quarter of 2014 and our sales results in October are already confirming that sentiment”.
Mark A. Luden, President of Guitammer, stated, “our agreement with the Sharks and Comcast SportsNet CA is a significant step forward for us as we continue to commercialize and standardize our unique haptic-tactile broadcast technology. Unlike last year’s national proof of concept for the National Hot Rod Association (NHRA) telecasts on ESPN2 where our agreement was only with the NHRA, this agreement is a true partnership with the team and the broadcast with all three parties invested in the success of the technology.”
Guitammer’s broadcast technology was recently featured in the Consumer Electronics Association’s “5 Technology Trends to Watch for 2015” (http://www.ce.org/i3/pages/Five-Tech-Trends-to-Watch). The report detailed the movement toward more immersive entertainment and highlighted Guitammer’s key role in this movement.
Commenting on the size and potential of the market, Mr. Luden added, “We see the market for haptic, tactile and motion (immersive) broadcasting increasing greatly in the next two to five years. Literally everything and everyone – from your family pet to now NFL players – have some kind of sensor on them transmitting all types of information, including location, motion and force, for further use. According to recent studies, this “over-the-top” content on “second screens” is seen as an $18 billion market. We believe being able to create and standardize the “pipe” – the path from the live event to the end user without regard to what brand or type of end user hardware is used – will help drive this multi-billion dollar market and allow Guitammer to reap the ensuing rewards.”
About The Guitammer Company:
The Guitammer Company, based in Westerville, Ohio, is a leader in low frequency audio products and broadcast technology. The Guitammer Company’s patented and patent pending broadcast technologies, “ButtKicker Live!® or “4D 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. “4D Sports powered by ButtKicker” technology is available for cable, satellite, fiber optic, IPTV and over-the-air broadcasts. For more information including in-depth information regarding the 2013 successful national proof of concept for the NHRA telecasts on ESPN2 see www.guitammer.com/4Dsports.
The Company’s innovative and award-winning line of patented ButtKicker-brand low frequency audio transducers let users feel low-frequency sound (bass) and are musically accurate, powerful and virtually indestructible. They 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 and are distributed by Pearl Drums for musicians under the trade name, “Pearl’s Throne Thumper by ButtKicker”. For additional information on The Guitammer Company and detailed product information, visit http://www.guitammer.com and http://www.shakemycouch.com.
For additional information on The Guitammer Company and detailed product information, visit www.guitammer.com and www.shakemycouch.com . To like our Facebook page or follow us on Twitter for company updates, visit www.facebook.com/TheButtKicker and www.twitter.com/TheButtKicker.
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.
The Guitammer Company
SOURCE: The Guitammer Company