Spatializer Audio Laboratories Announces Year End and Fourth Quarter Financial Results

Spatializer Audio Laboratories Announces Year End and Fourth Quarter Financial
Results

LOS ANGELES, March 31 /PRNewswire-FirstCall/ -- Spatializer Audio
Laboratories, Inc. (OTC Bulletin Board: SPAZ) (the "Company") announced its
financial results for the fourth quarter and fiscal year ended December 31,
2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20010525/LAF026LOGO)
Revenues increased to $751,000 for the year ended December 31, 2007
compared to $333,000 for the year ended December 31, 2006, an increase of
216%. Revenues are almost entirely comprised of royalties pertaining to a one
time agreement extension of the licensing of Spatializer(R) audio signal
processing algorithms. Revenue in the fourth quarter ended December 31, 2007
was $0, compared to revenue of $72,000 in the comparable period last year. The
decline in revenue results from the sale of all revenue producing assets in
July 2007.
Net income was $807,000 ($0.01 basic and diluted per share) for the year
ended December 31, 2007 compared to net loss of $353,000 (($0.01) basic per
share) for the year ended December 31, 2006. Net income for the current period
is primarily the result of the sale of assets, a one time licensing extension
and lower operating expenses. The net loss in the fourth quarter ended
December 31, 2007 was ($48,000), ($0.00 per share basic), compared to a net
loss of $54,000, ($0.00 per share basic), in the comparable period last year.
The reduced net loss results from sharply reduced expenses, partially offset
by no gross margin in the current period as a result of the asset sale earlier
in the year.
At December 31, 2007, the Company had $582,000 in cash and cash
equivalents, as compared to $229,000 at December 31, 2006. The increase in
cash resulted primarily from the asset sale and stock sale. The Company also
had $1,000,000 in a certificate of deposit at Citibank which matured in
February 2008. The Company had working capital of $1,557,000 at December 31,
2007 as compared with working capital of $242,000 at December 31, 2006.
About Spatializer
Spatializer Audio Laboratories Inc. was a developer, licensor and marketer
of next-generation audio technologies for the consumer electronics, computing
and mobile communication markets. The company's advanced audio technology has
been incorporated into consumer electronics audio and video products, PC and
mobile phone handsets from several global brand leaders. The Company has
ceased operations and is awaiting stockholder approval for the sale of its
assets. Spatializer stock is traded on the OTC Bulletin Board under the
symbol: SPAZ. The company is headquartered in Thousand Oaks, CA. Further
information may be obtained from Spatializer's SEC filings, and by contacting
the company's Investor Relations Department at spatializeraudiolabs@yahoo.com.
Safe Harbor Act Statement Under the Private Securities Litigation Reform
Act of 1995: Certain information in this press release are forward looking
statements that are based on management's belief, as well as assumptions made
by, and information currently available to management. While the company
believes that its expectations are based upon reasonable assumptions, there
can be no assurances that the company's financial goals will be realized.
Numerous uncertainties and risk factors may affect the company's actual
results and may cause results to differ materially from those expressed in
forward-looking statements made by or on behalf of the company. These
uncertainties and risk factors include, but are not limited to the continued
need for additional capital, loss of key personnel, dependence on new
technology and intellectual property, dependence on the PC and consumer
electronics industries, dependence on product shipments of third-party
licensees, dependence on third-party technology integrators or chip suppliers,
competition and pricing pressures, and other risks detailed from time to time
in the company's periodic reports filed with the Securities and Exchange
Commission.

NOTE: Desper Products Inc. is a wholly owned subsidiary of Spatializer
Audio Laboratories Inc. Spatializer(R) is a registered trademark of Desper
Products Inc. All other trademarks are the property of their respective
owners.

SPATIALIZER AUDIO LABORATORIES, INC.
AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

December 31, December 31,
2007 2006
ASSETS
Current Assets:
Cash and Cash Equivalents $582,019 $228,940
Short-Term Investments 1,000,000 0
Accounts Receivable 0 74,828
Prepaid Expenses and Other Current Assets 22,989 25,073
Total Current Assets 1,605,008 328,841
Property and Equipment, Net 0 3,477
Intangible Assets, Net Held for Sale 0 131,258

Total Assets $1,605,008 $463,576

LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Notes Payable 9,680 9,670
Accounts Payable 900 32,136
Accrued Wages and Benefits 1,323 3,169
Accrued Professional Fees 36,000 41,900
Accrued Commissions 0 200
Accrued Expenses 0 0
Total Current Liabilities 47,903 87,075

Commitments and Contingencies

Stockholders' Equity (Deficit):

Common shares, $0.01 par value; 300,000,000
shares authorized; 65,000,000 and 48,763,383
shares issued and outstanding at December 31,
2007 and 2006, respectively 650,000 487,634
Additional Paid-In Capital 46,634,856 46,423,893
Accumulated Deficit (45,727,751) (46,535,026)
Total Stockholders' Equity 1,557,105 376,501
Total Liabilities and Stockholders' Equity $1,605,008 $463,576

See accompanying notes to consolidated financial statements

SPATIALIZER AUDIO LABORATORIES, INC.
AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

Year Ended December 31,
2007 2006 2005
Revenues:
Royalty Revenues $750,706 $333,201 $1,192,447
Cost of Revenues 63,269 897 106,062
Gross Profit 687,437 332,304 1,086,385
Operating Expenses:
General and Administrative 433,667 526,865 670,124
Research and Development 0 157,739 354,138
Sales and Marketing 0 1,241 152,473
433,667 685,845 1,176,735
Operating Income (Loss) 253,770 (353,541) (90,350)
Interest Income 40,740 6,730 13,230
Interest Expense (2,311) (2,266) (5,269)
Gain On Sale of Assets 515,077 0 0
Other Income (Expense), Net 0 1,251 0
553,506 5,715 7,961
Income (Loss) Before Income Taxes 807,276 (347,826) (82,389)
Income Taxes 0 (4,800) 874
Net Income (Loss) $807,276 $(352,626) $(81,515)
Basic and Diluted Income (Loss) per
Share: $.01 $(.01) $(.00)
Weighted-Average Shares
Outstanding 59,884,354 48,763,385 46,990,059

SOURCE Spatializer Audio Laboratories, Inc.

INVESTOR RELATIONS, Henry R. Mandell, Chairman of Spatializer Audio
Laboratories, Inc., spatializeraudiolabs@yahoo.com