LRAD Corporation Reports Profitable Fiscal Q3 and Nine Months 2012 Results
Company Anticipates Strong Finish to Fiscal 2012

SAN DIEGO, CA, August 7, 2012 –LRAD Corporation (NASDAQ: LRAD), the world's leading provider of long range acoustic hailing devices (AHDs), today reported revenues of $3.2 million and net income of $200,000, or $0.01 per diluted share, for its fiscal third quarter ended June 30, 2012. The Company also reported revenues of $9.2 million and net income of $222,000, or $0.01 per diluted share, and positive cash flow of $490,000 for the nine months ended June 30, 2012.

"Our profitable fiscal third quarter performance was due to a pick up in military orders and continuing to manage our business effectively," commented Tom Brown, president and chief executive officer of LRAD Corporation. "Of note last quarter, we shipped our first omnidirectional LRAD 360X™ order and moved our operations into a new facility with increased manufacturing capacity. Based on expected U.S. military and international orders, we anticipate a strong finish to fiscal 2012."

Revenues for fiscal Q3 2012 increased 33% from $2.4 million recorded in fiscal Q3 2011. The increase in revenues was primarily attributable to an increase in orders from the U.S. Army.

Gross profit for fiscal Q3 2012 was $1.6 million, or 50% of revenues, compared to $905,000, or 38% of revenues, for the same quarter a year ago. The increase in gross profit was primarily due to the increase in revenue.

Operating expenses for fiscal Q3 2012 decreased to $1.5 million from $1.6 million for the same period in the prior year. The decrease was primarily attributed to decreases of $160,000 in bonus expense as a result of not meeting current year performance targets and $62,000 in commission expense, offset by an increase of $103,000 for non-cash share based compensation expense.

Net income for fiscal Q3 2012 was $200,000, or $0.01 per diluted share, compared to a net loss of $684,000, or $0.02 per share, for the same period last year. The increase in income was primarily attributable to the increase in revenues and gross margin and reduced operating expenses.

For the nine months ended June 30, 2012, revenues decreased 54% to $9.2 million, compared to $20.1 million for the nine months ended June 30, 2011. The decrease in revenues was primarily attributable to the lack of orders replacing the delivery of a $12.1 million foreign military order in the quarter ended March 31, 2011.

For the first nine months of fiscal 2012, gross profit was $4.6 million, or 51% of revenues, compared to $12.8 million, or 64% of revenues, for the same period a year ago. The decrease in gross profit was primarily due to a higher margin in the prior year as a result of a $12.1 million foreign military order, lower product cost due to volume pricing, and higher fixed absorption due to the increased production levels to fulfill the large foreign military order.

Operating expenses for the nine months ended June 30, 2012 were $4.6 million, a decrease of $3.5 million from the same period a year ago. The decrease was primarily attributed to decreases of $3.0 million in commission expense primarily related to the large foreign military sale and $642,000 in bonus expense as a result of not meeting current year performance targets.

Net income for the nine months ended June 30, 2012 was $222,000, or $0.01 per diluted share, compared to $4.7 million, or $0.15 per diluted share, for the same nine-month period last year. The decrease in income was primarily attributable to the decrease in revenues and gross margin, partially offset by decreased operating expense.

Cash and cash equivalents of $14.4 million at June 30, 2012 were up $490,000 compared to September 30, 2011.

Management is scheduled to discuss the Company's fiscal Q3 2012 business and financial results on a conference call tomorrow, August 8, 2012, at 4:30 p.m. Eastern Time.

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About LRAD Corporation
LRAD Corporation's Long Range AcousticDevice® (LRAD®) directional communication systems are being used around the world in diverse applications including fixed and mobile military deployments, maritime security, critical infrastructure and perimeter security, commercial security, border and port security, law enforcement and emergency responder communications, and wildlife preservation and control. For more information about LRAD Corporation and its long-range directional sound systems, please visit the company's web site at http://www.lradx.com/.