PARAMETRIC (PAMT) ARTICLES
New Hypersound speakers 'shine a spotlight of
sound' to the listener
Seen at CES 2014, Turtle Beach's speakers direct sound straight to the
listener - meaning three people on the same sofa could listen to different
tracks
theguardian.com, Friday
10 January 2014
http://www.theguardian.com/technology/2014/jan/10/hypersound-speakers-ces-2014-direct-sound-wavesturtle-beach
Noise pollution could become a thing of the past with the introduction of directional sound technology
that projects sound waves within a column of air.
Headed for the home audio market, the technology developed by Parametric Sound fires sound waves
within a 75cm-wide air column meaning that only those directly in its path can hear the sound.
“The aim is to be able to send different audio streams to different people using a Kinect-like system
recognising people sitting on a sofa, without them having to wear headphones,” explained spokesman
David Lowey, demonstrating the technology to the Guardian at the CES technology conference in Las
Vegas.
Cuts through ambient noise
The HyperSound System is currently being used commercially in museums and retailers to provide a
spotlight of sound, where passersby can only hear the audio commentary being played when standing in
the right space.
The audio produced by the system cuts through ambient noise, sounding like it is coming from within the
listener’s head, as demonstrated in a very noisy booth at the Las Vegas Convention Centre.
Lowey explained that HyperSound is a work in progress with a couple of innovation hurdles to be
overcome before consumer-focused applications become viable. However, the company is working on
several applications including assisted hearing, where the vocal track on a television programme is
projected at a higher volume to the ears of the hearing impaired without causing noise pollution for
others in the house or room.
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The surface of a TV or tablet could become the speaker
One of the current challenges of the HyperSound technology is the lack of low-end bass the system is
capable of projecting. The current implementation produces clear and rich high and mid tones, but
requires a subwoofer to provide non-directional bass, limiting its usefulness to a general consumer.
The technology is not limited to traditional speaker systems. Lowey explained that HyperSound uses a
flat plate to create the sound waves and that the surface of a TV or tablet could become the speaker,
projecting sound directly out of the screen without the need to additional speakers and lowering the
ambient noise pollution of devices.
“For gaming, we see HyperSound as a way of isolating the sound to your ears so that your wife or
neighbours don’t kill for your playing games in the middle of the night,” said Lowey.
Turtle Beach, the gaming company which recently bought Parametric Sound, will roll out the technology
into consumer products once a certain level of sound quality is achieved, which is expected to take
around three years. Assisted hearing applications are expected to come on sale during 2015.
CES 2014: Turtle Beach HyperSound Will Blow Your Mind
By Mo Mozuch on January 10, 2014
http://www.idigitaltimes.com/articles/21437/20140110/ces-2014-turtle-beach-hypersound-parametrics.htm
CES is all about that "wow" factor. Every company wants to have that "it" thing that is instantly impressive.
They want a piece of tech so useful and intuitive all it takes is a moment's experience to make a believer out of
someone who, moments before, didn't even know it existed. Turtle Beach, best known for their top-of-the-line
gaming headphones, has "it" with HyperSound.
What gives HyperSound that "wow" factor? Imagine standing in front of your television and not hearing a thing,
and then the moment your butt hits the couch a wall of surround sound washes over you. It sounds
impossible. How can you stand behind a TV or next to a couch and not hear a single thing from the speaker?
Because HyperSound is like a conventional speaker in as much as a flashlight is like a candle. Here's the
official explanation from Parametrics, the company that pioneered HyperSound and is now owned by Turtle
Beach:
Follow Us
Instead of using a vibrating membrane like traditional speakers, HSS electronically converts audible tones into
ultrasonic waves transmitted at frequencies beyond human hearing. These audible tones are projected along
an air beam of silent ultrasound energy. This sound (actually created in the air) can be directed to just about
any desired point in the listening environment.
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This precision sound has a ton of potential, says Turtle Beach PR guru David Lowey. At CES 2014 he rattled
off a number of potential uses from retail kiosks to devices for the hearing impaired. He even had some distant
projects on his mind that would be true game changers across a number of industries.
"Imagine a tablet where the screen is the speaker or an in-car navigation system only the driver can hear,"
Lowey said. "We're nowhere near there right now, and that's something for the engineers to figure out, but this
is the kind of stuff we're conceptualizing with this technology."
HyperSound is still in its infancy and Turtle Beach is working on evolving the technology as fast as possible.
For now, the size of the panel dictates the sound. This means a HyperSound-based soundbar under your TV
won't be coming soon, for instance. Lowey also said the bass is "not great" right now but that Turtle Beach is
committed to HyperSound in a big way. This week's official merger with Parametrics is proof of that. And while
nothing is official, Lowey stated that Turtle Beach hopes to have a variety of exciting HyperSound products on
the market by 2015.
The bottom line is that HyperSound represents a completely new, innovative way of experiencing audio. And
now it's paired with the resources, expertise and market reach of Turtle Beach.
Sounds good to me.
Turtle Beach HyperSound: Listen without being heard
thanks to 'sound beam' tech
By Mike Lowe
http://www.pocket-lint.com/news/126423-turtle-beach-hypersound-listen-without-being-heard-thanks-to-soundbeam-tech
9 January 2014
We all know that feeling when you want to watch telly but fear the volume will keep others awake. You
could wear headphones but probably don't have a wire long enough. Now Turtle Beach has acquired
Parametric Sound Corporation's know-how to make that issue a thing of the past.
On the Turtle Beach stand at the Consumer Electronics Show in Las Vegas is an unassuming TV set-up
with HyperSound audio technology. On entering the stand nothing could be heard, except for the general
chatter of trade show noise in the background. But sit in the specifically positioned seat in front of that TV,
and you descended into a world of audio that only you can hear.
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It's a strange experience, and one that makes you want to shout back at other people talking to you, but oh
so cool as a concept. It's not totally ready in its current state, in our view, because the quality of the audio
did sound a little "stressed" compared to usual sound systems.
But it's clever stuff. It works by using a thin film to generate an ultrasonic beam of sound that can be
positioned to target a specific location. Enter that location and you pick up the sound. But just because it's
generated from thin film doesn't mean the breadth of the frequency range is killed - we still got enough
booming bass.
Turtle Beach is known as a gaming headset company. So how it will go on to use the technology in its
future products remains to be seen. But we like companies experimenting with technology and this little
CES experiment brought a smile to our face.
Turtle Beach signs license deals with Sony,
Microsoft, EA and Respawn
Thursday, January 9th 2014
http://www.mcvpacific.com/news/read/turtle-beach-signs-license-deals-with-sony-microsoft-ea-andrespawn/0126520
Licensed headsets for the PlayStation 4, PlayStation Vita, and Titanfall will arrive in 2014 as Turtle Beach
inks new deals.
Expected to debut in Q3, the PS4 and Vita range will feature “tournament grade” headsets, along with
traditional gaming and entertainment orientated devices on the way, too.
“Turtle Beach is excited to work with Sony to create headsets for the PS4,” said Juergen Stark, Chief
Executive Officer at Turtle Beach.
“Audio is an important part of the next-generation PlayStation experience, and our emphasis on versatile,
multi-platform headsets will ensure consumers have an optimal experience across their PS4 console and
Vita devices.”
The headset specialist also unveiled three new products, which allows current PlayStation gamers to
make their existing headsets compatible with the PS4.
A PS4 Upgrade kit, which allow connectivity to the PS4’s optical audio port. Meanwhile, the PS4
Talkback Cable allows players to adjust their audio controls directly from the gamepad, while a PS4 Chat
Cable will provide chat audio directly from the DualShock controller.
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On the other side of the console fence, Turtle Beach has also confirmed it will launch a range of Titanfallbranded headsets for Xbox One, 360 and PC.
The deal with EA and Respawn Entertainment will see Turtle Beach introduce a variety of specifically
designed devices to support the launch of Titanfall in March.
As part of the range, Turtle Beach will launch new iterations of its XO Four and XO Seven headsets.
“Turtle Beach is honoured to work with the talented teams at Respawn Entertainment and Electronic Arts
to create headsets for fans of Titanfall,” said Bob Picunko Chief Marketing Officer at Turtle Beach.
“We are looking forward to working with Electronic Arts and our retail partners to support one of the
biggest next-gen events of the year.”
Turtle Beach announces PS4 partnership
Posted
January 8th, 2014 at 05:54 EDT by Steven Williamson
http://www.psu.com/a022130/Turtle-Beach-announces-PS4-partnershipPremium headset manufacturer Turtle Beach has announced a partnership with Sony to create officially
licensed headsets for the PlayStation 4.
Due to be revealed this summer, and set to launch in the Autumn, a range of headsets specifically
designed to provide an optimal audio experience on PS4 and Vita will be made available.
“Turtle Beach is excited to work with Sony to create headsets for the PlayStation 4 system,” said Juergen
Stark, Chief Executive Officer at Turtle Beach. “Audio is an important part of the next-generation
PlayStation experience, and our emphasis on versatile, multi-platform headsets will ensure consumers
have an optimal experience across their PlayStation 4 console and PlayStation Vita companion devices.”
According to statistics provided by the NPD, Turtle Beach are the creators of 7 of the 10 best-selling
headsets in 2013.
----
Turtle Beach And Parametric Sound Reveal HyperSound At
CES 2014
http://www.twinfinite.net/blog/2014/01/07/turtle-beach-parametric-hypersound-ces/
Page 5 of 39
1-7-14
In late 2013, major player in the gaming headset market Turtle Beach was cleared to merge with
Parametric Sound, a audio technology development company, and at CES 2014 they are revealing they
fruits of this potentially lucrative partnership; HyperSound technology, a method of creating threedimensional sound that sounds like it came straight from the deck of the Enterprise.
First patented in October of 2013 by Parametric Sound, HyperSound technology intends to revolutionize
how sound is played in a crowded room. Where the normal speaker system creates sound by blasting it
in all directions with a clear and easily recognizable point of source, and can be heard by anyone within
range, HyperSound creates a new breed of surround sound by removing the projection of sound from
the source. How does it do that? By projecting sound in a concentrated beam that, when stepped into,
feels analogous to wearing a super-high-quality surround sound headset. That headset analogy is not
there without purpose; much like a headset, when not inside the beam of sound, you cannot hear a
single noise. It is, effectively, a personal surround sound system accomplished without a physical device.
I’m going to break professionalism here for a second, and just say that holy shit, that sounds amazing.
Parametric Sound is hyping several different potential uses for its Turtle Beach collaboration, including
obvious applications in the gaming world. While the tech is not out for public purchase yet, it is available
to be experienced at the Turtle Beach booth at the 2014 Computer Electronics Show in Las Vegas, so if
you’re there, you have a serious chance to see the future of surround sound.
PS4 sells 4.2 million units in 2013, beating the Xbox One
comfortably
By Sebastian Anthony on January 7, 2014
http://www.extremetech.com/gaming/174239-ps4-sells-4-2-million-units-in-2013-beating-the-xbox-onecomfortably
At CES 2014, Sony has announced that the PS4 has sold 4.2 million units as of December 28,
2013. Yesterday, Microsoft revealed that it had sold 3 million Xbox Ones as of the end of 2013. It
would appear that the PS4 is outselling the Xbox One by some margin, but the bigger picture is
actually a lot more complex than that.
Let’s break it down. As of December 28, the PS4 had been on sale for 43 days and sold 4.2
million units. By December 28, the PS4 was available in 48 territories. If we divide 4.2 million by
43 days, we get a figure of around 98,000 units sold per day — not bad!
Page 6 of 39
As of the end of December 31, the Xbox One had been
on sale for 39 days and sold 3 million units. By December 31, the Xbox One was available in 13
territories. 3 million in 39 days equates to around 77,000 units per day.
From these figures, it’s clear that the PS4 is outselling the Xbox One. Even if you gave the Xbox
One another week to catch up, to make up for the PS4′s earlier release, we’d still only be looking
at 3.54 million Xboxes vs. 4.2 million PS4s. (Read: PS4 owners watch three times more porn
and have better taste than Xbox One owners.)
The one gotcha is that the Xbox One is only available in 13 countries and territories, while the
PS4 is currently available in 53 (it has been released in five more since December 28). You
could argue that, when the Xbox One is more widely released, it will catch the PS4 in sales.
Considering the Xbox One is already available in all of its major stomping grounds (the US, EU,
Australia, Brazil), and the PS4 isn’t yet available in its home territory (Japan), I find it hard to
believe that Microsoft will magically catch up.
Page 7 of 39
The PS4, disassembled into bits
No matter which way you split it, then, the PS4 is currently winning the eighth-generation
console war. If we look beyond the numbers, though, the big picture is that both consoles are
doing really, really well. Despite being in second place, the Xbox One is still doing much better
than the PS3 or Xbox 360. In fact, the PS4 and Xbox One seem to be the two fastest selling
video game consoles of all time. I don’t think anyone predicted that Microsoft and Sony would
sell a combined total of 7.2 million consoles in the last six weeks of 2013. Yes, the PS4 might be
the winner in absolute terms, but it is console gaming in general that stands to win
from these huge sales figures. The next couple of years will be very exciting for gaming.
PS4 sales topped 4.2 million in 2013, Sony claims
Company announces latest platform sales and user data at CES
2014
By Tom Ivan on Tuesday Jan 7th 2014
at
PS4 sales topped 4.2 million units as of December 28, Sony claimed on Tuesday.
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The latest sell through total was announced by PlayStation boss Andrew House during a CES 2014
keynote presentation delivered by Sony CEO Kaz Hirai.
Having debuted in North America on November 15 and in Europe two weeks later, PS4 is now
available in 53 countries and territories worldwide. Sony said on Tuesday that combined retail and
digital PS4 software sales have surpassed 9.7 million.
The firm also claimed that PS Plus subscriptions increased by more than 90 per cent between
PS4's launch and the end of 2013. PS4 owners require a PS Plus subscription in order to play
online multiplayer, which isn't the case on PS3 or Vita. [Hmmm . . . likely headset buyers –eh? JBTSR]
Additionally, Sony said on Tuesday that over 1.7 million gameplay broadcasts have been streamed
from PS4 systems via Twitch and Ustream.
House commented: "The momentum of the PS4 system keeps getting stronger and we couldn't be
more thrilled gamers worldwide are enjoying the incredibly immersive gaming experiences along with
deep social capabilities and entertainment provided by our network.
"After a remarkable launch, we look forward to bringing even more exciting content and continuing to
explore the power of the PS4 system by adding new features and services, including PlayStation
Now, in 2014."
Sony said on December 3 that worldwide PS4 sales stood at 2.1 million units, making the system's
launch the biggest in history.
Having gone on sale in 13 markets on November 22, Xbox One sales topped two million units in
18 days, according to Microsoft. The US firm said on Monday that Xbox One sales hit three million
globally by the end of 2013.
1/07/2014
@ 1:08PM |13,080 views
Page 9 of 39
PS4 Takes The Lead In The Next-Gen Console War With
4.2 Million Sales
http://www.forbes.com/sites/davidthier/2014/01/07/ps4-dominating-console-market-with-4-2-million-sales/
Sony's Sony's PS4 is barreling into 2014, having sold 4.2 million units in 2013, the company
announced at CES 2014 today. That news comes just a day after Microsoft announced 3 million Xbox
Ones sold. Both are staggering numbers that dwarf previous console launches, but this is Sony’s
summer buzz in action.
“The momentum of the PS4 system keeps getting stronger and we couldn’t be more thrilled gamers
worldwide are enjoying the incredibly immersive gaming experiences along with deep social
capabilities and entertainment provided by our network ,” said Andrew House, President and Group
CEO of Sony Computer Entertainment Inc. “After a remarkable launch, we look forward to bringing
even more exciting content and continuing to explore the power of the PS4 system by adding new
features and services, including PlayStation Now, in 2014.”
The console war is still hard to gauge right now — both machines have been available in different
numbers of markets for different amounts of time. Still, launch and holidays still account for a huge
number of sales, and I have yet to see more than one or two PS4s in the wild on store shelves. It
looks like Sony is pulling ahead, and the PS4 hasn’t even launched in its home market of Japan.
There are many reasons why Sony has seen such a positive response in the past couple weeks, but
going forward, its main advantage remains the fact that it costs $100 less than the Xbox One. The
former hasn’t made the argument for that extra price yet, so the PS4 becomes the most logical
choice. I’d expect these numbers to keep climbing at a brisk pace until supply finally catches
demand.
One thing is certain — there are a whole lot of next-gen consoles on the market right now, and not a
whole lot of games to play on them. Expect something of a publisher arms race to fill that
void, and a whole lot of fun games to play as the year progresses.
Xbox One sales reach 2 million units, now in dead heat with
PS4
On average, over 111,111 units were sold per day.
by Eddie Makuch on December 11, 2013
http://www.gamespot.com/articles/xbox-one-sales-reach-2-million-units-now-in-dead-heat-with-ps4/11006416655/
Microsoft announced today that Xbox One worldwide sales have reached more than 2
million consoles, bringing the company's new system nearly on par with Sony's
PlayStation 4, which has sold 2.1 million consoles as of last week.
Page 10 of 39
The 2 million Xbox One figure represents units sold-through to consumers. On average,
more than 111,111 units have been sold per day, described as a "record-setting pace for
Xbox," Microsoft said. More than 1 million systems were sold on launch-day alone.
Those who have purchased an Xbox One so far are showing "incredible engagement"
with the system, Microsoft said. Users have spent more than 83 million hours in games,
TV, and apps since launch on November 22. Including both digital games and video
purchases, users have been responsible for more than 1 million paid transactions on
Xbox Live so far.
“We continue to be humbled and overwhelmed by the positive response from our fans.
We are thrilled to see sales of Xbox One on a record-setting pace, with over 2 million
Xbox One consoles in homes around the world. Demand is exceeding supply in our 13
launch markets and Xbox One is sold out at most retailers. We’re also particularly
excited to see consumers engaging in a wide range of games and entertainment
experiences on the platform, with more than 1 million paid transactions on Xbox Live
to date,” Microsoft marketing executive Yusuf Mehdi said in a statement.
Microsoft added that Xbox One owners have unlocked more than 39 million
achievements worth a combined 595 million total Gamerscore.
The company's announcement today also includes quotes from various big-name
retailers. Amazon director of video games said at peak demand, customers were
ordering the Xbox One at over 1,000 units per minute. Meanwhile, GameStop
merchandising executive Bob Puzon described the Xbox One as "one of our hottest
selling products this holiday season." Wal-Mart VP of entertainment Chris Nagelson
said the Xbox One was a "top-seller" on Black Friday and that the company is
refreshing its inventory "as fast as we can" to ensure customers can purchase the system
for Christmas.
For more on the Xbox One vs. PS4 ongoing sales story, check out GameSpot's editorial
on the matter.
Microsoft says Xbox One global sales top 2 million
BY MALATHI NAYAK
SAN FRANCISCO Wed
Dec 11, 2013
Page 11 of 39
SAN FRANCISCO (Reuters) - Microsoft Corp has sold more than 2 million Xbox One video game consoles
since its November 22 launch, catching up with rival Sony Corp's PlayStation 4 released a week earlier.
The U.S. software giant on Wednesday said it took 18 days for Xbox One's global sales to surpass 2
million - a new company record. Japan's Sony last week said it took 15 days for PS4 sales to cross 2.1
million.
The Xbox One, on sale in 13 countries, is selling quicker than its predecessor, the Xbox 360, and is sold
out at most retailers, said Microsoft Xbox spokesman David Dennis.
"We're manufacturing as fast as we can" to replenish supplies at stores during the holiday season,
Dennis said.
The Xbox One, priced $499 in the United States, and PS4, priced $399, offer improved graphics for
increased realism and faster processors permitting smoother play, as well as numerous exclusive games.
"Being even is a win for Sony," Benchmark Co analyst Mike Hickey said.
Sony's pitch that its PS4 is a gamer-centric device has successfully attracted game enthusiasts and "that
will show in market share moving forward," Hickey said.
Microsoft hopes the new Xbox will become the entertainment hub in living rooms, not only enticing
gamers but appealing to a broader consumer base of TV fans and music lovers with its interactive
entertainment features and media applications. It has been pitching its Kinect motion sensor camera,
Xbox-only titles like "Ryse: Son of Rome" and features that allow hands-free control of television sets to
differentiate its device.
Robert W. Baird & Co analyst Colin Sebastian in October said he expected global shipments of 2.5
million to 3 million consoles for both the Xbox One and PS4 in October-December. Both consoles sold
over 1 million units in their first 24 hours after going on sale.
Investors are keeping a close eye on sales of the two next-generation consoles, which arrived after a gap
of eight years. Analysts say they could reignite the video game market, which struggled with flagging
sales for over a year until this fall when it began seeing a gradual uptick in revenue.
Strong launches of both consoles were a good sign for the industry but it was too soon to forecast where
the market was going to shift, said Benchmark's Hickey.
Despite robust initial demand, "it remains to be seen how much mainstream consumer demand will
unfold," Baird & Co's Sebastian said in a recent research note.
Microsoft shares were down 1.3 percent at $37.60 in afternoon trading on Nasdaq.
(Editing by Christopher Cushing and Tim Dobbyn)
Page 12 of 39
Xbox One and PS4 sales numbers don’t matter right
now (but you don’t care)
Editorial: Microsoft and Sony are going to toss out a lot of numbers
over the next couple months. They're fun to follow, but they don't
mean much (yet).
by Justin Haywald on December 4, 2013
http://www.gamespot.com/articles/xbox-one-and-ps4-sales-numbers-don-t-matter-right-now-but-you-dont-care/1100-6416542/
We’re in a war of numbers.





The PlayStation 4 sold one million consoles in 24 hours
Then the Xbox One did too
But the PS4 only launched in two countries compared to the XB1’s 13
After the PS4’s global launch across 32 countries, Sony reported 2.1 million console
sales.
Microsoft says that currently the XB1 is seeing "unprecedented" demand
But sifting through all the noise, these numbers don’t really mean anything. Not yet anyway.
Don’t get me wrong, they’re big, impressive numbers for consoles that aren’t even a month
old. After all, Nintendo’s Wii only sold 600,000 in its first week, and the PlayStation 2 only
sold 500,000. But nobody is arguing that those consoles weren’t incredibly successful.
All those numbers really mean is that Sony and Microsoft have been more prepared for
consumer demand than at any previous console launch. If more consoles were currently
available for either system, they’d sell even more.
Sales numbers are meaningless for determining how “successful” either console is until after
supply starts to surpass demand. Until you can walk into a store and pick one up. At that point,
you’ll get objective numbers, minus the spin, and the popularity contest winner will be
revealed.
But you probably already know that it’s going to be the PS4.
Going over the results from data provided by the market research portal GameSpot Trax, you
can see a clear preference for Sony’s console among general gamers. In a series of surveys
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over the last year where respondents were asked to rate their likelihood to purchase either an
XB1 or a PS4, here were the results. Although both consoles were relatively close around this
time last year, the gulf widened considerably as we approached launch.
And while respondents who definitely will not purchase a PS4 have declined slightly, the
number who do not want to purchase an XB1 rose constantly until August.
Page 14 of 39
In a separate, completely unscientific survey of retailers I’ve talked with over the past couple
weeks, they all told me the same story. XB1 and PS4 are both sold out, but the PS4 sells out
immediately, while the Xbox stock tends to hang out for at least a few hours.
None of that means Microsoft isn’t going to be successful or even that the sales between both
consoles won’t be relatively close. But just like the Xbox 360 lead sales for years in the US,
the PS4 is probably going to stay just ahead of the XB1.
Does that really make a difference, outside of message boards and comments in stories like
this one? As long as both consoles are selling at least decently, the actual number shouldn’t
matter, should it?
Both the PS4 and XB1 have a similar lineup of games, and they’re both going to get the same
wide-range of third-party support. They both have their own specific launch hardware
problems. The real difference comes down to personal preference.
Page 15 of 39
Xbox One will easily surpass 360 in launch
sales, says Game
Gaming
22 November 13 by Philippa Warr
http://www.wired.co.uk/news/archive/2013-11/22/xbox-one-sales
If you're wondering how the Xbox One's sales figures are looking, video game retailer Game is offering its own initial
verdict.
"You could almost taste the excitement," said Game's chief digital offer (and presumably chief excitement taster),
Ian Chambers in a statement. "Gamers had been waiting for Xbox One for over eight years and we saw a massive
turnout at the midnight openings at more than 300 Game stores across the UK.
"We've seen record pre-order numbers for the new generation consoles and looking at the initial response it's clear
that sales will easily surpass that delivered at the Xbox 360 launch."
That'll be good news for Microsoft given Ubisoft's Yves Guillemot noted that PS4 pre-orders were surpassing those
of the Xbox One during a recent earnings call.
The UK "virtually sold out" of Xbox 360s within hours when the console launched in 2005 and has gone on to sell
more than 80 million units [worldwide] so far. Given the Xbox 360 console allocation for the entire Europe region
was around 300,000 at launch, it would seem sensible to ship a higher number and expect them to sell.
Parametric Files Patent for Transparent HyperSound Speakers
Posted on November 12, 2013
http://www.ravepubs.com/parametric-transparent-hypersound-speaker/
Parametric Sound Corporation has filed a utility patent application with the United States Patent and
Trademark Office (USPTO) to protect new innovations enabling its patented HyperSound directional
audio speakers to be transparent. The company is known for advancements in directed audio solutions,
the application of acoustic technology to beam sound to target a specific listening area without the
ambient noise of traditional speakers.
The latest innovation enables glass emitters to produce sound and is being developed for applications in
tablets, personal computers, mobile devices, televisions and commercial video displays. HyperSound has
been installed in numerous commercial applications worldwide and has pilots underway for new
commercial applications.
Page 16 of 39
The audio systems reproduce standard audio content through patented and patent-pending processing
and control electronics that reproduce audio in the air along an ultrasonic beam. The beam is generated
by custom patented and patent-pending emitters, analogous to speakers in conventional audio systems.
The company’s technology is being marketed in three sectors:
 consumer markets (for PCs, gaming, TVs, home theater and handhelds),
 commercial markets (for digital signage, kiosks and retail stores) and
 health care (for an out-of-ear solution being developed for the hearing impaired.)
It has also filed 15 additional provisional patent applications with the USPTO this month.
Xbox 360 sells over 80 million consoles in
its lifetime, data reveals
Gaming
18 October 13 by Philippa Warr
The Xbox 360 has sold over 80 million consoles worldwide, according to Microsoft's internal data.
The figure was announced as part of a blog post focusing on the NPD research and analysis group's September
report. It refers to the number of consoles sold to retailers rather than end users so some of those units will be on
shelves and in warehouses rather than living rooms.
Despite the fact the Xbox One will launch on 22 November, Microsoft is keen not to miss out on further 360 success
and has announced a series of bundles for Christmas.
Recent reports suggested that the PS4 would struggle to meet demand in the UK when it launches on 29 November
(although those reports came from anonymous, rather than named, sources). It makes sense that Microsoft would
try to embed a sense of security about its own offering regardless of how console availability pans out in reality.
Sony sold more than 1 million PlayStation 4 units in
24 hours
By Lauren Hockenson
Nov. 18, 2013 - 4:43 AM PST Nov. 18, 2013 - 4:43 AM PST
The PlayStation 4 has arrived: Within just 24 hours of its release in the U.S. and Canada only, the console
already sold more than 1 million units, according to Sony. To put that in perspective, Nintendo’s latest
console, the Wii U, has only sold 3.91 million units in its year-long lifetime. It’s unclear whether the sales
Page 17 of 39
count the company’s exclusive Day One preorders (which sold out over the summer), but Sony considers
it a major win and, according to the AP, has set its sights on 5 million units sold by the end of March.
Your move, Microsoft.
From: J Berg <jberg@jberg.com>
Date: November 22, 2013 at 4:04:08 AM PST
To: Dazzler <blondon7@yahoo.com>
Subject: Per yesterday's conversation -- FW: (Seeking Alpha) Parametric Sound: A Turkey's Desperate Attempt
To Avoid The Chopping Block
I think PAMT can be a big stock, but no longer a $100mm mkt cap going to $1bil. However, overlaying its
technology on the Turtle Beach business platform/product delivery platform should speed the adoption of its
audio products.
Note as well, the hearing care product could be huge in its own right.
From: Bob Clifford [mailto:bclifford@mdb.com]
Sent: Wednesday, November 13, 2013 9:51 AM
To: Jonathan Berg (jb@jberg.com)
Subject: (Seeking Alpha) Parametric Sound: A Turkey's Desperate Attempt To Avoid The Chopping Block
Parametric Sound: A Turkey's Desperate Attempt To Avoid The
Chopping Block
Nov 13 2013, 09:44 by: Alpha Exposure
| about: PAMT
Disclosure: I am short PAMT. I wrote this article myself, and it expresses my own opinions. I am not receiving
compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
(More...)
Shareholders of Parametric Sound Corporation (PAMT) have been eagerly awaiting the recently filed definitive
proxy statement for its pending merger with Turtle Beach, which was announced on August 5th. Prior to the filing
of the proxy, there was little information available on Turtle Beach - just a few high level numbers given out on
conference calls. There was a reason for that: the truth behind Turtle Beach is that it's a deteriorating (and quite
possibly distressed) company conducting a merger with Parametric Sound out of desperation. In this article, we
will show that Parametric Sound is an excellent short sale candidate due to the deteriorating business of Turtle
Beach and the extreme overvaluation of the combined company.
Page 18 of 39
Turtle Beach's Business is Deteriorating
The most alarming disclosure from the proxy statement is the rapid deterioration of the Turtle Beach business.
According to page 74 of the proxy (here), Turtle Beach was projecting 2013 EBITDA of $40.6 million when the
merger was being negotiated between the parties. This was a 15% decline from the $47.8 million of EBITDA it
earned in 2012, per page 139 of the proxy. Later, on August 5th after the merger was announced, the companies
held a joint conference call in which the CEO of Turtle Beach lowered estimates to a "range of $32 million to $40
million," or a midpoint of $36 million. This new level of EBITDA represents an almost 25% year over year drop in
profitability. Of course, the news only gets worse. In a conference call held November 4th , the CEO of Turtle
Beach revealed that "the adapter and related software required to make our headsets fully functional with the
new Xbox One console, will not be ready at launch" and that "as a result, the 2013 outlook for revenue and
EBITDA provided on August 8th will be revised." While we don't know where 2013 EBITDA will end up, it's safe to
say that he would not have made this statement if revised estimates were not lower than the bottom of the
already lowered range indicated on August 5th. Here's a graphical representation of Turtle Beach's EBITDA:
(Click to enlarge)
Turtle Beach Actually Looks Distressed
While it should be clear from the above that Turtle Beach is suffering poor performance, what's not clear is that
the company may actually be financially distressed. There are numerous signs of distress in the proxy statement
beyond just the collapsing profits, which fell from +$4.1 million in the first half of 2012 to -$5.6 million in the first
half of 2013, as can be seen on page 135. This profitability collapse resulted in the tripping of debt covenants. For
instance, on page 141, we learned that "Turtle Beach was not in compliance with its fixed charge coverage ratio as
of June 30, 2013 and December 31, 2012." Likewise, on page 53, we learned that as a condition to approving the
merger with Parametric Technologies, Turtle Beach's lenders required that "Parametric raise at least $5,000,000 in
debt or equity capital" and that "Turtle Beach raise $10,000,000 in debt or equity capital, which would be used to
prepay an equivalent portion of its credit facility." Clearly, Turtle Beach is in distress when it is tripping its debt
Page 19 of 39
covenants and those same lenders require money to be raised in order to approve a merger. Moreover, on page
142, we learned that when it came time to raise the new capital, Turtle Beach was unable to find a third-party
lender and it had to issue Subordinated Notes to "certain affiliated investors, including the Stripes Group and the
Chief Executive Officer," and that the interest on the notes was a usurious "10% per annum for the first year and …
20% per annum for all periods thereafter" (page D-42).
The conditions and lending rates that Turtle Beach had to abide by are not indicative of a healthy company, and
instead point to significant financial distress.
Acquisitions Hid Declining Performance In 2012
Turtle Beach wants investors to believe that the gaming console cycle, which includes new consoles from both
Sony and Microsoft this year, is to blame for the company's struggles. For instance, on the August conference call,
the CEO stated "consumers obviously in anticipation of the new consoles, they buy less consoles, less games, less
accessories right until the new consoles hit." Likewise, on the last conference call, the CEO stated that in 2013
there will be an "expected pre-console transition, downturn for the industry." At first blush, the financials in the
proxy statement appear to support this contention, with profitability continuing to grow through the end of 2012,
reaching a record $26.5 million of net income in 2012. However, this is again misleading because it does not
account for Turtle Beach's acquisition of its European distributor, Lygo. The properly adjusted pro forma earnings,
on page D-25 of the proxy, which adjust Turtle Beach's earnings as though the acquisition had taken place at the
start of 2011, show that net income actually started to decline in 2012 and that it fell from $23 million in 2011 to
$18.3 million in 2012. This suggests that the company's excuse regarding the console cycle lacks merit.
Parametric Management Is Cashing Out
So why would Parametric pursue an acquisition with a floundering company like Turtle Beach? Personal
enrichment, of course. As a result of the merger, special golden parachute payments will be triggered for the
executive management of Parametric. For instance, we can see on page 77 that Kenneth Potashner, the Chairman,
will be entitled to over $2.8 million of payments that are triggered on a change of control. The proxy also reveals
that he will continue on with a board seat following the merger, which is likely to be a cushy and lucrative
endeavor for him.
Two Desperate Parties?
Lest we only criticize the business outlook for Turtle Beach, we think it is also important to recognize that
Parametric Sound was also in a very weak negotiating position. For instance, on page 48 of the proxy, the
company revealed that "representatives of Houlihan Lokey contacted and held varying levels of discussion with a
total of 13 parties other than Turtle Beach regarding a transaction involving Parametric. During this time period, all
such parties advised representatives of Houlihan Lokey that they were not interested in pursuing an acquisition of
Parametric." Following the agreement with Turtle Beach, Parametric conducted an additional sales process, the
"go shop" period, during which "Houlihan Lokey contacted 49 prospective buyers…[and] None of these
prospective buyers, or any other parties, expressed interest in making an acquisition proposal for Parametric." (p.
Page 20 of 39
58) In fact, it appears that the only other proposals Parametric received during this period were for two licensing
agreements. In short, Parametric conducted an exhaustive sales process and the only real interested party was
Turtle Beach, which is paying nothing in cash and which appears to be in financial
distress.
The Valuation Looks Extreme
While all of the above considerations suggest that both Turtle Beach and Parametic are struggling, Parametrics
stock is truly a great short due to its extreme overvaluation, which suggests significant downside. Based on the
pro-forma number of shares outstanding, we believe that the combined market cap of the company is $669
million and that the enterprise value of the company is $730 million. This represents a multiple of approximately
27x 2013E EBITDA, as can be seen below:
In contrast, the peer group to Parametric trades at only 8.4x EBITDA and to the best of our knowledge, none of
these companies is experiencing financial distress:
Page 21 of 39
Based on the average peer multiple, which may be generous
due to the poor business conditions and apparent financial
distress at Turtle Beach as well as the tepid interest in
Parametric, we believe that the fair value for Parametric's stock
is approximately $3.93 per share or 75% below the current
stock price:
Conclusion
Until the recent filing of the proxy statement, there has been a paucity of information available about Turtle Beach
and, by extension, about Parametric. Now that the proxy has been filed, we can easily see that it's not a pretty
picture. The profitability of Turtle Beach is eroding, the business appears to be in financial distress, and there was
only one suitor with true interest for Parametric. To top off this bad fundamental news, the valuation of the
combined company looks extreme. We are short and recommend shorting Parametric Sound with a target price of
$3.93 per share or 75% below the most recent share price.
5 Reasons Why The Video Game Industry Is Not
Doomed
Jon Rettinger, TechnoBuffalo
Nov. 15, 2013,
Read more: http://www.businessinsider.com/the-video-game-industry-is-not-doomed-201311#ixzz2qFz6WaPt
It seems like all anyone wants to talk about these days when it comes to the video game industry is how in
trouble it is.
Page 22 of 39
The console business is becoming obsolete, they say, edged out by the growth of cheap games on
smartphones and tablets. Never mind that it’s projected to grow 24% worldwide over the next two years
and we’re at the start of a brand-new product cycle with all three of the world’s top consoles.
So why is everyone so glum about the ‘traditional’ console?
For one, it makes a nice storyline—mobile gaming is new, it’s popular, it’s growing like gangbusters, so
of course it must be cannibalizing the traditional game market. Right?
But this view overlooks the fundamental realities that exist in the video game market—and it also
overvalues the strength and resiliency of a new gaming model that is based on freemium downloads.
Here are the main arguments for the console industry’s demise—and why they’re wrong:
1. Console sales have been in a tailspin over the last four years.
Have they really? It depends on how you look at the numbers. If you compare 2012 sales versus 2008 or
2009, then, yes, these sales have gone down. But this is extremely misleading.
Here’s why: 2012 was an off year. By this point, the top three consoles were between six to seven years
old - that’s six to seven years without any hardware upgrades. Would you buy an iPhone 1 in 2014 if you
were able to? What about the iPad 1 in 2017? Add to this the fact that rumors had already begun to
circulate, as early as mid-to-late 2011, that a next-generation PlayStation, Xbox and Wii were already in
the works. Tech sales always decline in the lead up to a new release. So it was only natural for sales to
peter off in 2012.
However, if we take 2012 out of the equation, these numbers tell a different story. In spite of the fact that
the Xbox 360 and PS3 were both mature products nearing the end of their lifecycles, both showed strong
sales growth between 2008-2011—right up until the new console rumors began. For instance, PS3 sales
jumped 41% between 2008-2011; the Xbox 360 grew 29% in sales during the same period.
Does this sound like a tailspin to you? Of course, the exception to this is the Wii—its sales plummeted
54% between 2008-2011; this is likely due to its over-reliance on casual games, which compete more
directly with mobile platforms, but could also just be the normal attrition rate that occurs after record sales
of a product early on.
2. Consoles serve a niche market.
Some analysts erroneously claim that consoles are limited to the niche market of hard-core gamers. This
simply isn’t true. According to Nielsen, 56% of U.S. households in 2012 owned at least one currentgeneration gaming console—that’s up from 50% the year before. Additionally, the number of female
gamers has also significantly increased—from 38% of all gamers in 2006 to 45% in 2012.
Does that mean the market is saturated then? No. The console business shows significant growth prospects
overseas—particularly in Asia. The Chinese government recently lifted its 13 year ban on game consoles,
which IDC predicts will lead to millions of additional hardware bundle sales for the top three consoles
Page 23 of 39
within three years. IDC also forecasts online console gamers to exceed 165 million worldwide by 2017.
Meanwhile, Gartner sees console revenues worldwide continuing to grow—reaching $55 billion by 2015,
a 24% increase over the current year and 49% higher than 2012.
3. Mobile games are cannibalizing the console market.
This doesn’t seem to be supported by the evidence. While mobile games are growing fast, faster than
console games, it doesn’t appear to be hurting the bottom line for console makers—with the exception of
one: Nintendo. The Wii has arguably been the one console hardest hit by the rise of cheap mobile
games—as it was the console most tilted toward casual games.
If we look at Gartner’s forecast for worldwide gaming revenues over the next two years, mobile games are
expected to increase dramatically—climbing 67% between and 2015—but, as noted above, video game
consoles will also surge 25%, and even PC games are expected to rise 22%. So where is the
cannibalization? The reality is that most gamers own multiple devices and game formats—consoles,
tablets, smartphones and PCs. In fact, the average U.S. gamer household owns two consoles, according to
the Entertainment Software Association.
4. Consoles are failing to keep pace with the market.
Some pundits regularly claim that the dedicated video game console is a stagnant market—it’s not as
innovative as the faster-moving mobile game space. But this isn’t true. There’s a lot of change coming
down the pipeline for console and PC players. For one, both Sony and Microsoft are in the midst of
developing online streaming services—this could lower the price on game titles and make it easier and
faster to buy them.
Then we have the rise of independent consoles like Ouya that offer cheap to free indie titles. And don’t
forget Steam, an online streaming service for PC games—this has revolutionized the PC game market
even more than the App Store and Google Drive. As of last month, Steam has over 65 million registered
users—that’s a 30% rise over 2012 and even more than Xbox Live. Valve, the company behind Steam,
recently released its own Steam operating system with greater TV compatibility and is in the midst of
developing its own open video game console, known as Steam Box.
5. Mobile games are selling way faste.
That’s true, but they also earn a lot less. Mobile game revenue is now about 21% of what’s earned by
‘traditional’ console and PC games, according to Gartner. As reported by FierceDeveloper, half of all
mobile games distributed via Apple’s App Store earn less than $3,000 in revenues.
In a recent study by Interpret, the average mobile gamer spends $0.92 on game apps and $0.79 on in-game
purchases—compared with $10.40 a month for the average console player. As mobile developers have
moved away from paid downloads for games, they’re trying to compensate with in-app purchases and
advertisements—both of which haven’t yet proven successful for most companies. There’s an argument to
be made here that the mobile game space isn’t sustainable for the majority of companies that get into it.
Page 24 of 39
Two Urgent Updates on CTHR and PAMT
WSD Insider Mailbag – Aug 12, 2013
How about an update on Parametric Sound (PAMT)? I know it's a recommendation for
your paid MicroCap Tech Trader subscribers. But you did tout the company to us recently,
too. - T.B.
As I told you in late July, I was just waiting for the company to announce the final terms of its strategic
deal. And we got the announcement last Monday. But investors completely misinterpreted the terms and
bailed on the stock.
As a result, I spent most of last week explaining to MicroCap Tech Trader subscribers why the selloff
below $13 actually represented a screaming buying opportunity.
Sorry for the preferential treatment, but I had to cover the situation thoroughly for paying subscribers
first... well, because they paid for it. Doing so required about 3,000 words spread across four separate
emails over four days.
Now that they've been debriefed, I can take the time to summarize the situation for everyone else and,
most importantly, share why the stock is still a compelling buy for less than $16...
*****
Parametric announced that it's merging with privately held Turtle Beach, a maker of premium audio
products for video game, personal computer and mobile platforms.
I took the time to read through the Agreement and Plan of Merger and spoke with management to make
sure I completely understood the terms, too. But here's the most important thing you need to know Parametric will remain a publicly traded company.
Turtle Beach is effectively going public via a merger with Parametric. In the end, original Parametric
shareholders will retain 20% ownership in the combined company. And this is truly the best-case
scenario for us.
It allows us to profit from all the upside as the company penetrates multiple billion-dollar end markets,
as opposed to the company being sold outright and someone else reaping the rewards.
To that end, the merger with Turtle Beach accelerates Parametric's entry into the video game market.
On a broader scale, the merger also promises to accelerate Parametric's launch in other consumer end
markets because it can tap into Turtle Beach's established manufacturing and distribution networks with
major retailers throughout the world, including Wal-Mart (WMT), Amazon.com, Target (TGT) and
Tesco (TESO).
As for Parametric's potential applications in other markets, most notably for treating hearing
impairment, the merger provides the stability of a profitable company with over $200 million in sales to
Page 25 of 39
fund those pursuits.
Long story short, the merger provides a way for management to realize the value of Parametric's truly
disruptive intellectual property more quickly. And that should translate into much higher share prices
over the long term.
Here's the problem...
When people don't understand something, they run for cover into something they do know. And that's
exactly what happened with Parametric in the aftermath of the announcement.
Since Turtle Beach is a privately held company, its financials aren't publicly available. So a
straightforward valuation analysis on the deal is impossible. That is, until the proxy statement is filed
with the necessary information. And that might not be for another four to eight weeks.
In turn, investors defaulted to the valuation Parametric commanded prior to the time it announced the
hiring of Houlihan Lokey as its investment banker.
Making matters worse, Seeking Alpha gave someone (Paulo Santos) with absolutely no clue about the
company a platform to spread misinformation and conjecture, thereby magnifying the downturn.
This very same thing happened before with Parametric in September 2012 (see here), which I rebutted
promptly (see here).
At the end of the day, the only reason shares pulled back on the announcement of the merger was because
the details (or I should say, lack thereof) in regards to Turtle Beach's financials created uncertainty. And
instead of asking questions and examining the facts, investors bailed.
This is a temporary situation, though. Once the proxy is filed, all the information will be available, which
I'm confident will justify a share price for Parametric of $17 on the downside to almost $22 on the upside.
That's based upon performing multiple valuation analyses (price-to-sales, price-to-EBITDA, price-toearnings growth, etc.) to determine a fair valuation for Parametric.
Bottom line: The synergies of the merger set up Parametric to become a market-leading, audio technology
company. Investors won't figure out this reality, though, until the proxy is filed. As I told MicroCap Tech
Trader subscribers, I suggest you treat any volatility before then as a buying opportunity.
Parametric Sound Corporation Reports on First
Round of Clinical Results Comparing
HyperSound(TM) With Conventional Audio
Hires Senior Research Scientist to Focus on Health Applications of HyperSound
SAN DIEGO, CA--(Marketwired - May
21, 2013) –
Page 26 of 39
Parametric Sound Corporation (NASDAQ: PAMT), a leading innovator of audio technology and solutions, today
announced results from the first round of clinical testing of its HyperSound audio system. In February 2013 the
Company filed a clinical study protocol entitled "A Comparison of the HyperSound Audio System to Conventional
Audio Speakers in Patients with Mild to Severe Hearing Loss" with an independent review board and received
clearance to commence the study in late March 2013. The study was designed to assess whether the Company's
HyperSound audio improves sound clarity when compared to a conventional acoustic speaker in those persons with
mild to severe hearing loss.
The Company engaged the California Hearing & Balance Center of La Jolla, California under the guidance of
principal investigator, Dr. Ritvik Mehta, to conduct patient studies that commenced in April 2013.
"We are pleased to report that preliminary results from this scientific study confirm the outcomes from previously
announced preference testing," reported Kenneth F. Potashner, executive chairman of Parametric Sound. "We
consistently witness that more than 70% of persons with hearing loss prefer the clarity of HyperSound and many
people are reporting dramatic improvement in hearing and clarity. We will report final results when the study is
complete. We expect that HyperSound can enable products that can enhance the audio enjoyment of a broad
segment of the aging and hearing impaired population."
According to a study in a November 2011 issue of Archives of Internal Medicine, hearing loss affects nearly 48
million Americans. For individuals 12 years and older in the United States, nearly 1 in 8 has bilateral hearing loss,
and nearly 1 in 5 has a unilateral or bilateral hearing loss severe enough to interfere with day-to-day
communication. The study further states that the prevalence of hearing loss is expected to rise because of the aging
of the population. The Company believes one of the major issues experienced by the hearing impaired is lack of
clarity in differentiating words from each other even with loud volume. The Company also believes its emitters may
provide benefits in this area by delivering with clarity the frequencies important in speech recognition, thus
improving the TV viewing experience by those with normal hearing, and by providing amplification for those with
some hearing loss without the need for headphones or any coupling to the ear or body.
The Company also reported that it has hired Brian Kappus, Ph.D., as a senior research scientist with responsibility
to focus scientific study and research on hearing and other novel applications of HyperSound technology. Dr.
Kappus has more than twelve years experience in experimental and theoretical physics and pioneered new
techniques in acoustical and light measurement. While recently working at UCLA he joins the Company with a
thorough understanding of HyperSound technology and acoustics.
About Parametric Sound Corporation
Parametric Sound Corporation is a pioneering innovator of directed audio solutions. With a substantial body of
intellectual property, Parametric Sound is the foremost authority in the application of acoustic technology to beam
sound to target a specific listening area without the ambient noise of traditional speakers. Distinct from surround
sound, HyperSound™ immerses listeners in a robust 3D audio experience from just two speakers. The Company's
disruptive technology is being marketed to three global market sectors: Consumer Markets -- for PCs, gaming, TVs,
home theater and handhelds, Commercial Markets -- for digital signage, kiosks and retail stores, and Health Care -for an out-of-ear solution being developed for the hearing impaired. For more information, visit
www.parametricsound.com.
About California Hearing & Balance Center
The California Hearing and Balance Center (CHBC) is a San Diego, CA based practice dedicated to
Otology/Neurotology and Audiology. Founded in 2009 by Dr. Ritvik Mehta (MD) and Dr. Sara Mattson (AuD), The
California Hearing and Balance Center provides full-service care for all hearing and balance needs. The practice
includes full-service audiology, including diagnostics and audiology treatment. CHBC also specializes in implantable
hearing devices including cochlear implants, implantable hearing technology, and bone anchored hearing solutions
(including the latest SoundBite device). Its tinnitus center includes Tinnitus Retraining Therapy (TRT) and treatment
of tinnitus with sound therapies including Neuromonics, OtoSound, and SoundCure. CHBC is well versed in working
with the hearing healthcare industry and has been involved in clinical studies and consulting for tinnitus as well as
hearing devices.
Page 27 of 39
Is Parametric Sound Poised For A Spike?
Feb 28 2013, 01:42 |
http://seekingalpha.com/article/1232141-is-parametric-sound-poised-for-a-spike#comment-15615111
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in PAMT over
the next 72 hours. (More...)
Parametric Sound Corp (PAMT) came to my attention a few days ago, when I read about it in this post
from Timothy Sykes ("This Will Be The Best Stock Of March 2013"). In that post, it is highlighted that
PAMT may be working on a major deal with McDonald's (MCD), and already seems to be present in at
least one McDonald's store (this was, in fact, announced on twitter by @markflowchatter on February
21st). An analyst known as MDB Capital had also noted in their commentary on PAMT that not only was
PAMT technology being utilized in a McDonald's location, but that the company also had at least 3 deals
in place to bring its HyperSound System (HSS) technology to market in the consumer electronics space.
At this stage, no press release has been released announcing a deal between PAMT and McDonald's (I
would guess that at this stage McDonald's is merely testing PAMT's technology). But this is not the first
time PAMT has had a business relationship with a multi-billion dollar company. Last year, PAMT
announced a strategic partnership with Fujitsu (FJTSY.PK), and a distribution agreement with Ingram
Micro (IM). In 2012 PAMT also sold to various smaller companies such as Build-A-Bear Workship
(BWW).
Most excitingly, PAMT is currently valued at less than $100 million, and it looks like there's now a
reasonable chance that a major deal with a fortune 500 company (McDonald's or not) will be announced in
March. If that were to happen, given PAMT's low market cap, we could see PAMT spike significantly. All
it would take is one major deal and one press release. It also appeals to me that this stock is still mostly
'under the radar', and despite all the signs, relatively few people are discussing the possibility of PAMT
announcing a major deal in the near future.
Why are McDonald's, Fujitsu and Ingram Micro interested in PAMT's technology?
On their website, PAMT claims that their HSS technology gives the ability to "put sound where you want
it and nowhere else." Sound can be directed at one person in a room, and not at another person. For
example, a television may be able to direct its sound at a hearing-impaired person, while another person in
the same room hears the sound at a lower volume. PAMT lists numerous applications for this technology.
It is surprising that such a technology could work (at this stage it's still very much in its infancy), but
PAMT does have numerous patents, and a proven history which very much suggests that its technology is
for real.
PAMT financials and earnings
Page 28 of 39
PAMT's latest 10Q states that at the end of 2012, it had $4,650,564 in cash, and total assets of $6,593,357
(total current liabilities were just $337,829). Total revenues for the three months ended December 31st
2012 were just $108,674, with a net loss of $ 1,252,120. Given their lack of profitability, PAMT could
certainly still be considered a "development stage" company. They have a reasonable amount of cash at
hand to last longer, and what I believe matters most at this stage is whether or not they are able to sign
some larger deals as their HSS technology gains wider recognition.
What are the long-term prospects for PAMT?
Already it has been speculated that PAMT could do for sound what IMAX Corporation (IMAX) has done
for motion picture technologies. Of course, at this stage PAMT has am enormous amount of work to do to
reach anywhere near the level of success that IMAX has, and it must be understood that with a stock like
PAMT, there is a far higher element of uncertainty involved. But the potential for some big deals to be
announced in the near future is certainly there, and thus I believe that holding PAMT currently represents
a good risk/reward scenario.
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Parametric Sound Corporation Files US
Patent Application for Emitter Innovation
Expected to Broaden Range of Applications for HyperSound(TM) Technology
SAN DIEGO, CA--(Marketwire - February 21, 2013) Parametric Sound Corporation (NASDAQ: PAMT), a leading innovator of audio technology and solutions,
announced today that it has filed for patent protection on novel new emitter technology that it believes will
significantly expand the applications for its directional 3D audio systems.
The Company's audio systems reproduce standard audio content through patented and patent-pending processing
and control electronics that reproduce audio in the air along an ultrasonic beam. The beam is generated by custom
emitters, similar to speakers in conventional audio systems. The latest innovation offers higher fidelity performance
in a much wider range of form factors.
"While it is not our normal practice to announce patent filings, we believe this particular filing is especially important
to our patent portfolio and will expand the market opportunities for commercialization of HyperSound technology,"
Page 29 of 39
said Ken Potashner, executive chairman. "In addition to performance enhancements and cost savings our new
emitter technology allows easy and rapid deployment by prospective licensees in diverse consumer and health
applications where directed audio and 3D sound are highly relevant. We are very excited to demonstrate our latest
innovations to potential customers and licensees."
"We are demonstrating emitters as thin as a credit card that can be sized, shaped and molded to reproduce
directional and 3D audio and we can easily and economically control the width of the beam," said inventor and chief
scientist Elwood Norris. "The frequency response is impressive and the design flexibility of new form factors offers
the promise of new applications for directed audio."
About Parametric Sound Corporation
Parametric Sound Corporation is a pioneering innovator of directed audio solutions. With a substantial body of
intellectual property, Parametric Sound is the foremost authority in the application of acoustic technology to beam
sound to target a specific listening area without the ambient noise of traditional speakers. The Company is targeting
its technology for new uses in consumer markets including computers, video gaming, televisions, home audio,
health care and mobile devices. For more information, visit www.parametricsound.com.
Cautionary note on forward-looking statements
This press release includes forward-looking information and statements. These statements relate to future events or
future financial performance and are subject to risks and uncertainties. In some cases, you can identify forwardlooking statements by terminology such as "may," "will," "should," "expect," "plan," "anticipate," "believe," "feel,"
"estimate," "predict," "hope," the negative of such terms, expressions of optimism or other comparable terminology.
These statements are only predictions. Actual events or results may differ materially. While the Company believes
that its expectations are based upon reasonable assumptions, there can be no assurances that its goals and
strategy will be realized. Numerous factors, including risks and uncertainties, may affect actual results and may
cause results to differ materially from those expressed in forward-looking statements made by the Company or on
its behalf. Some of these factors include the ability to finalize agreements with major OEMs in its target markets,
acceptance of existing and future products, the impact of competitive products and pricing, general business and
economic conditions, and other factors detailed in the Company's Annual Report on Form 10-K and other periodic
reports filed with the SEC. Except as required by law, the Company specifically disclaims any obligation to update
or revise any forward-looking statement whether as a result of new information, future developments or otherwise.
CONTACT:
Tracy Neumann
888-HSS-2150, Ext. 509
tneumann@parametricsound.com
A Rebuttal To 'Rinse And Repeat: Short Parametric Sound'
October 1, 2012 | 1 commentby: Lou Basenese | about: PAMT
http://seekingalpha.com/article/897401-a-rebuttal-to-rinse-and-repeat-short-parametricsound?source=bloomberg
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the
next 72 hours. (More...)
On Tuesday, an anonymous Seeking Alpha contributor posted a critical piece about Parametric Sound
(PAMT), which was subsequently syndicated on Yahoo Finance, sparking a precipitous selloff in shares.
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(If you haven't read it yet, please do so here.)
I've actively recommended the stock to my subscribers. So, I put together this point-by-point rebuttal,
which should be of interest to any current and potential investors in the company.
1. Technology Development is a Process, Not An Event
The article tries to down play the disruptive potential of PAMT's technology by suggesting it's old. It's
true. Mr. Norris has been talking about the technology in a general sense for the better part of 15 years.
But it's not the same technology today as it was back then.
If the contributor spent any time researching the stock, he'd quickly learn PAMT meaningfully improved
its technology in November 2011. Specifically, it developed the algorithms required to reduce distortion
levels, enough to open up opportunities in consumer markets, not just digital signage.
This process of development is consistent with some of the greatest inventions of all time. Somehow,
though, we're supposed to overlook such a reality.
Take the light bulb, for instance. The technology was 30 years old by the time Thomas Edison developed
it into a commercially available product. And it took him over 1,000 tries.
Did the length of the process make the ultimate technology any less disruptive? Not hardly.
Or take cloud computing. The visionary Steve Jobs talked about it in 1997 (see here). Does that make
cloud-computing technology old and irrelevant? Again, no.
Same situation with PAMT. Mr. Norris' initial technology might be old in the sense that it was originally
conceived years ago. But it's the latest developments that ultimately matter and hold the most promise.
The attempts to discredit the technology by citing old research (from 2005 and 2007) are also irrelevant.
The studies are not based on the current technology.
Bottom line: The increased fidelity of the sound produced by PAMT's latest emitters opens up additional
market applications that didn't previously exist. The fact the technology is developing and progressing
should be embraced, not panned as a reason to ignore it.
2. Managers or Magicians?
The next claim - "Management relies on a demonstration with a hidden subwoofer to make investors
believe the technology can produce a full range of sound" - couldn't be more bogus.
When I tested the speakers, management disclosed that a subwoofer was present. During the demo, they
even instructed me they were going to turn off the subwoofer so I could hear the sound without it.
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Under both conditions, I assure you the speakers create a 3-D sound, unmatched by any other speakers I've
ever tested. I'd buy the speakers without thinking if I could right now. And I wouldn't blink an eye if it
cost me $1,000 or more. They're that unique.
Management also freely spoke about the speakers' frequency limitations - flat to 300 Hz, with a drop-off
beginning at 250 Hz.
My experience isn't an isolated one, either. I watched management conduct the same honest demo with at
least 20 other institutional analysts and investors. The Seeking Alpha contributor must have been the only
one to experience "an almost painful, tiny ring."
Everyone I watched demo the speakers sat in amazement at what they were hearing. Unless that was some
"parlor trick," too, whereby, management somehow convinced them to smile with disbelief and enjoyment
when they actually were feeling pain.
Sorry. But management isn't trying to pull off any magic. Moreover, the need for a subwoofer doesn't
suddenly render the technology unattractive, either.
Bottom line: The dynamic range of the speakers is on par with "traditional off-the-shelf speakers," as
MDB Capital concluded in a recent report.
The need for a subwoofer brings the total components in the system to three. That's much less complex
than anything else on the market. In addition to the sound experience, I expect consumers will view the
limited number of components as a compelling selling point, too. Not a drawback.
3. It's Not All About Gaming
The article goes to considerable lengths to convince us the speakers aren't suitable for the gaming market.
Why? Because serious gamers want serious bass. But apparently people that live with serious gamers don't
want to hear the serious bass. So the need for a subwoofer is going to be an irritation to anyone who lives
with a gamer. Therefore, no gamers are going to buy it.
I fail to see how this argument is remotely relevant. The $68 billion video game market doesn't fit into
Occupy Wall Street's model of the world. Serious gamers don't make up 99% of it, with non-serious
gamers only accounting for 1%.
I'm not going to waste the time to figure out how many billions of dollars of sales come from non-serious
gamers, who wouldn't object one bit to paying for the speakers. Instead, let's take the bait and rule out the
gaming market completely.
What happens when we do? PAMT's technology still applies to multiple, multi-billion-dollar market
opportunities, including:
• Mobile Devices: In 2011, 1.77 billion mobile devices were sold, up 11.1% from 2010. For 2012,
technology research firm Gartner expects the market to grow to almost two billion units.
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• Healthcare: Over 35 million Americans suffer from hearing loss. Those ranks are all but guaranteed to
swell as the Baby Boomers continue to age. In 2011, the U.S. hearing aid and audiology device market
alone was valued at $5.7 billion, according to iData Research.
• Kiosks and Point-of-Sale Terminals: There are currently 1.6 million interactive kiosks in the world.
ABI Research expects the market to almost double to three million units over the next five years.
• Casinos: There are 840,000 electronic gaming machines in North America and 4.2 million globally.
Annual revenue for the U.S. gaming equipment sector topped $11 billion in 2010.
• Personal Computers: The PC might be dying, but there are still close to 400 million new units sold
each year. PAMT's technology could be incorporated directly into computers or sold in aftermarket
speakers.
• Television: The global television market accounted for almost $20 billion in sales last year. By 2015,
IHS iSuppli Research expects flat-panel TV sales alone to top 275 million units. PAMT's technology
could be integrated directly into televisions or sold as part of a home theater audio solution.
• Home Theater: The global loudspeaker market is expected to be worth $4.5 billion by 2017, according
to Electronics.ca research. A significant replacement market opportunity exists, as global consumers spend
over $1 billion per year on loudspeakers. Current surround sound systems typically include seven
speakers, compared to PAMT's two, yet still can't produce a similar user experience.
• Movies and Cinema: There are approximately 40,000 movie screens in the United States, according to
the National Association of Theater Owners. Much like 3-D films, PAMT's 3-D sound holds the potential
for theater owners to charge a premium.
Bottom line: The objection to the opportunity in the gaming market is laughable, at best. It's not critical to
the company's success, either.
We're talking about roughly a $50 million market cap company, here. Even the smallest modicum of
penetration in any of these massive markets promises to transform the company's financials.
4. All Patents Are Not Created Equal
In addition to trying to discredit PAMT for having "old" technology, the post also calls into question the
strength of the company's intellectual property.
It does so by saying "competitors, potential licensees and a patent troll" all possess related patents "which
will greatly reduce the company's negotiating power."
Such an argument assumes all patents are created equal. That's just not the case. Some patents are much
more valuable than others. The most valuable patents are foundational patents - ones an entire technology
is built upon.
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Guess what? The foundational patent in PAMT's industry is Patent # 6,044,160, "Resonant tuned,
ultrasonic electrostatic emitter," according to MDB Capital. And the patent was filed by Mr. Norris and
assigned to PAMT.
In a testament to my earlier point that PAMT continues to develop it's technology, the company just
received another patent this week, bringing its total up to 23 patents and 4 pending.
Bottom line: I'll be the first to concede I'm not a patent expert. But MDB built its business on accurately
assessing the quality of companies' intellectual property. And they contend that any suggestion PAMT's IP
is weak is "wholly misplaced."
On this claim, investors have a choice. Piggyback MDB's experience and research. Or rely on some
anonymous person's random searches on the USPTO website. Considering we're putting hard-earned
capital on the line, I don't think it's a tough decision, do you?
5. Sales-Poor Companies Don't Get Sued
The article also says PAMT "is not well capitalized for a development stage venture," and warns a single
patent defense would exhaust at least 50% of its cash.
What a minute? I thought he just said PAMT had weak IP? Why would a company with weak IP get sued?
It wouldn't.
Since PAMT has strong IP, it could technically get sued. But, that's unlikely anytime soon. Companies
with minimal sales and licensing revenue don't get sued. Potential litigants wait until there is money to be
paid out. In the here and now, patent litigation poses no threat to PAMT's cash balance.
Bottom line: At the end of the second quarter, PAMT's cash balance stood at $6.5 million. Given its
monthly burn rate of about $250,000, that's more than two years worth of working capital. That qualifies
as well capitalized for a development stage or mature company.
6. It's the Software, Not the Hardware
The last claim in the article is that there are weak barriers to entry, as evidenced by the fact a directional
speaker can be produced "with off-the-shelf components or hobby kits by anyone." That's true. But it's
also irrelevant.
As I said from the outset, PAMT's disruptive technology is in the software. Specifically, its signal
processing algorithms. Criticizing the company's hardware is nothing more than an attempt to distract
from what's important.
Don't believe me? Spend two minutes on any other leading speaker manufacturer's website and you'll see
they don't talk about their hardware much. It's about the software.
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Take Bose, for instance. The first thing it talks about is the software technology, which "remains at the
heart of the performance," and the "digital electronics (which) fine-tune the sound for accurate music
reproduction across a wide range of volume levels."
Bottom line: PAMT's disruptive technology rests in the company's software, not the hardware. And it can't
be purchased at your local Hobby Lobby or Office Depot.
The recent dip in prices should be treated a chance to add to an existing position or initiate a new one.
Especially since PAMT secured a customer in Build-A-Bear Workshop stores (see here).
And from here on out, I'll let the market be the final arbiter in this debate.
Rinse And Repeat: Short Parametric Sound
September 25, 2012 | 4 commentsby: DisruptorSeeker | about: PAMT
http://seekingalpha.com/article/888381-rinse-and-repeat-short-parametric-sound
Disclosure: I am short PAMT.OB. (More...)
Parametric Sound (PAMT) hopes to revolutionize the speakers in your car, home theater, hearing aide,
and more by licensing to speaker companies its breakthrough new technology which the company calls
Hyper Sonic Sound (HSS). The term HSS was coined and invented by Parametric Sound President
Elwood "Woody" Norris. PAMT shares are up over 100% since a secondary offering in March 2012. This
increase is not warranted.
Summary - Key Points
1. Parametric Sound's technology is not new. The founder has been promoting the technology for 15+
years. The pitch is almost verbatim what it was since at least 1996 (as far back as online annual filings
go).
2. Management relies on a demonstration with a hidden subwoofer to make investors believe the
technology can produce a full range of sound. The science behind the technology indicates low range
notes will not be achievable without risk of potentially harmful side effects.
3. The technology is not an attractive, transformative opportunity for target markets, specifically gaming
because the speakers cannot produce bass. Adding a traditional subwoofer would eliminate any benefit
achievable with this technology as anyone who has lived with a gamer knows, most of what is irritating is
the bass from the explosions reverberating through the wall.
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4. Parametric Sound does not have "strong IP" as management indicates with competitors, potential
licensees, and a patent troll all possessing related patents which will greatly reduce the company's
negotiating power.
5. The company is not well capitalized for a development stage venture. The payment received for the
only licensing deal inked to date is refundable as early as January. The average patent defense cost would
burn about half their 6/30/12 cash balance.
6. There are not strong barriers to entry. A directional parametric speaker can be produced with off-theshelf components or hobby kits by anyone.
Background
Parametric Sound was spun out of LRAD Corp (LRAD) (previously American Technology Corporation)
in June 2010 after LRAD management failed to find a market for HSS and could not sell the division at an
attractive price according to an LRAD spokesman. Parametric continued along as a penny stock for about
a year and half until it was discovered by Executive Chairman Kenneth Potashner. After he took control of
the day to day doings, the company completed a 1 for 5 reverse split, did a small secondary offering, and
up-listed on the Nasdaq at $4.50 per share. After a press release on a new contract and a flashy
presentation, the stock more than doubled with a market cap of about double its prior parent LRAD.
Parametric Sound is a stock benefiting from the latest round of promotional claims from its founder.
Mr. Norris has tried promoting this technology for at least the past 15 years without success for his
companies or investors. (2001 & 2003 company literature) In 1997, he presented HSS to the Acoustical
Society of America. In 1996, LRAD's predecessor announces it is collaborating with Carver Corporation
for a home audio system. Based on public filings, it doesn't appear an agreement ever materialized.
Regarding HSS, the 1996 10K stated: "the Company's strategy is to license broadly, it may provide limited
exclusivity in certain market segments or sub-segments or may enter into exclusive arrangements with
others to enter particular market segments," which sounds very familiar to the plan today at Parametric.
(1996 10K (see p3); Carver Corporation Announcement (also in 10K)
The Intellectual Property
Parametric management believes it has "Strong IP," according to the corporate presentation. While the
company does have several patents, so too do potential licensees, competitors, and even an intellectual
property licensing firm (commonly known as a patent troll). For instance, Xerox (XRX) has a patent on a
"Hypersonic Transducer" for delivering audio to a specific person or target. Philips Electronics has a
patent titled "Driving of Parametric Loudspeakers". The founder of Holosonics, a competitor in display
speakers has at least 6 patents related to parametric speakers including one titled "Parametric audio
system."
Further proving the low barrier to entry, a California man recently ran a successful campaign on
kickstarter to crowd source funding for his small parametric speaker, the Soundlazer. Fully functional, he
has begun shipping the product to its backers as of 9/15/12. That anyone in a garage built his own speaker
using similar technology with off-the-rack parts calls into question how stiff a barrier there really is to
entry in this market.
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Keeping the story straight
In promoting HSS, Norris likes to talk about his prior successes in investing; however, he doesn't seem to
be able to remember how successful he has or hasn't been. On his personal website, in a USA today article
from earlier in the decade, Norris claims to have sold technology related to the Jabra Jawbone for
$1.5MM; however, several years later, in a 2009 TED Talks presentation (skip to 12:34) he ups the figure
to $7.5MM. He inflates the figure by 5 times which should make investors question other figures he puts
out.
Three of the possible use cases presented by Parametric Sound management are a rock concert, home
theater, and movie theater; however, in the same USA today article referenced above, rock concerts, home
theater, and movies are specifically listed as places where the technology is less useful. The article also
listed a few groups testing HSS including Sony. Sony was mentioned in LRAD predecessor's FY03 10K.
The filing says Sony had a non-exclusive supply agreement for HSS in Europe with a plan to develop the
distribution channel is 2004. Sony was again mentioned in a 2/12/04 earnings release for 1Q04 as a
customer for HSS. Sony's involvement with HSS doesn't appear again in future filings. Sony has passed
before; why would a major OEM would go for this dated technology with limited uses this time around?
The Product & Technology
HSS relies on ultrasonic sound to create a directional speaker. This speaker can be pointed like a flash
light. If you step out of the 'beam', the volume declines greatly. The primary initial market for the
technology, according to management's current investor pitch, is gaming speakers. The pitch is: if a pair of
these speakers was pointed at a gamer, he or she could turn up the volume and no one else in the house
would have to hear the explosions going off in his or her game.
The Demo
At a recent demo of Parametric Sound's technology, investors were invited to see the technology first
hand. Management does 2 demos. One demo involves Mr. Norris pointing a one channel speaker at you
where he plays a water fall which is akin to white noise. This demo is the one you'll find in brochures and
on YouTube dating back several years.
The second demo is one in which you sit in front of a two speaker system. This arrangement is supposed
to demonstrate a consumer application. My observations were several. The quality of the sound is very
poor with an almost painful, tinny ring to it if you are not seated directly in the center of the speakers.
Again, Mr. Norris will start with his favorite demo where he plays a waterfall which amounts to white
noise. Management offered to play some hip-hop since the bass notes of that music more closely mirrors
what will be needed for success in gaming. The bass which resonated from the speakers as he played some
hip-hop sounded pretty good.
Unfortunately, undisclosed to investors, there was a standard, run-of-the-mill sub-woofer hiding under the
table which was covered with a table cloth. This parlor trick is clearly designed to deceive investors into
believing Parametric can create a full sound range; however, low frequencies are not possible due to
practical limitations in the science behind Parametric's technology. These limitations were demonstrated
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in University of Central Florida informal experiments using both Parametric's speakers and that of a
competitor, concluding:
both units are limited in their ability to reproduce low frequency sounds (in fact most anything below 400
Hz) and also sound best when used at quiet volumes - typically too quiet for many practical applications.
In addition to the lack of bass, the audio 'beam' scatters or reflects around the room which made the music
audible when standing at several different angles and distances to the other peoples' demo of the two
speaker setup.
Another paper published in 2005 by the University of Adelaide in Australia discussed parametric speakers
use in noise control and used LRAD's predecessor ie. Parametric Sound's technology for testing. On page
2, the authors note that due to the 12 dB per octave roll-off, "much higher primary pressure amplitudes are
needed to produce secondary wave amplitudes comparable to what could be produced at higher secondary
frequencies." What does this mean? A drop of 1octave (think middle C on a piano to the C key 8 keys to
the left) requires a more than doubling of the volume of ultrasonic carrier wave. The paper closing
remarks note the high levels of ultrasound put out by the speaker "may potentially have an adverse health
effect," and "these high levels are of particular concern as they are intrinsic in the governing physical
sound generation mechanism and therefore cannot be reduced significantly through improved parametric
array design." The speaker (one of PAMT's and LRAD's predecessor) used in testing peaked at 130 dB. In
the U.S. OSHA specifies the limit of safe ultrasound at 145 dB; other countries including Canada, Japan,
and Sweden have guidelines of 110-115 as a safe limit for the frequency range employed by Parametric
Sound's ultrasonic carrier wave.
Parametric's likely retort would be that it intends for a gaming audio company to package its technology
with a subwoofer; however, anyone who lives with a gamer knows that the one sound you can hear across
the house is the bass. Such a product pairing would render useless the whole point of a directional speaker.
Deals so far
Parametric Sound's only licensing deal so far is with an after-market car-audio products company, Epsilon
Electronics. This contract is risk-free for Epsilon with several ways for them to get their money back. If
after 6 months Epsilon hasn't been able to find a use for the technology, Epsilon can get a refund. If
Epsilon finds a use for the technology, all of its licensing fees are paid back out of Parametric's royalty
until Epsilon's net cost on the contract is zero. There is no reason not to sign this deal if you are Epsilon as
you get a free, exclusive look at a technology for your engineers to play with. Channel checks revealed
current similar technologies including Parametric's cannot achieve a volume or low end of the frequency
range for an application in car audio or home theater applications.
The most recently announced deal is a "strategic relationship" with Fujitsu Frontech North America, a
subsidiary of the Japanese firm Fujitsu, which will make Fujitsu Frontech a reseller of Parametric's display
& signage speaker, a product area management repeatedly has designated as non-core to Parametric's
licensing business model going forward. This agreement allows Fujitsu Frontech the option at its
customer's election to include a Parametric Speaker. Again, there is no reason for Fujitsu Frontech not to
enter into this agreement since it costs them nothing to offer this product nor does there appear to be any
minimum orders.
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The future
Epsilon may exercise its option for a 6 month extension for further evaluation of the technology in January
(at no additional cost). If they fail to come up with a product, Epsilon will ask for a refund no later than
June of next year. This refund will further decrease Parametric's cash.
The investment bank that did the secondary has a warrant for 188k shares priced at $5.63 which unlocks
the last week of September. Management's shares' lockup expires at the same time. With a gain of 100%,
some of those shares may be sold.
With only $6MM in cash and $750k per quarter burn rate at present staffing levels, PAMT likely cannot
afford more than one intellectual property lawsuit which average $2-3MM according to industry statistics.
Management has said it will aggressively defend its patents and would likely hope to agree to licensing
agreements; however, such a defense may be difficult with a patent troll lurking as those groups typically
are only after cash and have no interest in licensing anything from you. If any such lawsuits occur, I would
expect a secondary shortly thereafter.
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