$950,000 In Advance Is Like Music To Lake

Digital sound company Lake Technology has extracted an advanced royalty payment of $US500,000 ($A950,000) from United States group Dolby Laboratories.

19-Jun-01

Digital sound company Lake Technology has extracted an advanced royalty payment of $US500,000 ($A950,000) from United States group Dolby Laboratories. Lake Technology receives royalties from Dolby every quarter for the group's flagship product, Dolby Headphone. The early payment was made to help Lake bridge a delay in other licence streams.Lake Technology chief executive Chris Gilbey said yesterday the payment would also signal to the market Lake's ongoing and robust relationship with Dolby. ""One of the issues raised by analysts over the past year has been the question of the timing of revenues resulting from the licence deals we have announced,"" Mr Gilbey said. ""We believe that this new advance from Dolby is a demonstration of the strength of our relationship and the willingness of Dolby to help us address this.""Sydney-based Lake Technology developed the technology behind Dolby Headphone, which delivers a cinema surround-sound experience. The company has several other patented products from which it reaps a revenue, including an in-flight system that several airlines use. Since its float in December 1999, when it raised $6.5 million, Lake Technology has expanded into outdoor concert equipment with the purchase of the intellectual property assets of Clair Technologies LLC.Chairman Russell Ingersoll recently said Lake Technology should break even this financial year as revenue began to flow from licensing agreements with the likes of Dolby. The company recorded a loss of $5.1 million in the year to June 30 on $2.4 million revenue. Lake Technology shares rose eight cents, or 28 per cent, to 36 cents yesterday.