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Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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<SEC-DOCUMENT>0000950148-03-001343.txt : 20030519
<SEC-HEADER>0000950148-03-001343.hdr.sgml : 20030519
<ACCEPTANCE-DATETIME>20030519173036
ACCESSION NUMBER:		0000950148-03-001343
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20030512
ITEM INFORMATION:		Financial statements and exhibits
ITEM INFORMATION:		Regulation FD Disclosure
FILED AS OF DATE:		20030519

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SPATIALIZER AUDIO LABORATORIES INC
		CENTRAL INDEX KEY:			0000890821
		STANDARD INDUSTRIAL CLASSIFICATION:	SEMICONDUCTORS & RELATED DEVICES [3674]
		IRS NUMBER:				954484725
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-26460
		FILM NUMBER:		03711176

	BUSINESS ADDRESS:	
		STREET 1:		20700 VENTURA BOULEVARD SUITE 140
		CITY:			WOODLAND HILLS
		STATE:			CA
		ZIP:			91364
		BUSINESS PHONE:		3102273370

	MAIL ADDRESS:	
		STREET 1:		20700 VENTURA BLVD SUITE 140
		CITY:			WOODLAND HILLS
		STATE:			CA
		ZIP:			91364
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>v90404e8vk.htm
<DESCRIPTION>FORM 8-K PERIOD ENDED MAY 12, 2003
<TEXT>
<HTML>
<HEAD>
<TITLE>Spatializer Audio Laboratories, Inc. Form 8-k</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<P align="center"><FONT size="4"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>
</FONT>

<DIV align="center"><FONT size="3"><B>Washington, DC 20549</B>
</FONT>
</DIV>

<DIV align="center"><FONT size="3">&nbsp;
</FONT>
</DIV>

<P align="center"><FONT size="5"><B>FORM 8-K</B>
</FONT>

<P align="center"><FONT size="2"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 OR 15(d) of the Securities Exchange Act of 1934</B>
</FONT>

<P align="center"><FONT size="2">&nbsp;
</FONT>

<P align="center"><FONT size="2">Date of Report (Date of earliest event reported): May&nbsp;12, 2003
</FONT>

<P align="center"><FONT size="2">&nbsp;
</FONT>

<P align="center"><FONT size="6"><B>SPATIALIZER AUDIO LABORATORIES, INC.</B>
</FONT>

<DIV align="center"><FONT size="2">(Exact name of registrant as specified in its charter)
</FONT>
</DIV>

<DIV align="center"><FONT size="2">&nbsp;
</FONT>
</DIV>

<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><FONT size="2"><B>Delaware</B><BR>
(State or other jurisdiction of<BR>
incorporation)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">
<B>33-90532</B><BR>
(Commission File Number)
</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2"><B>95-4484725</B><BR>
(IRS Employer<BR>
Identification No.)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>
</TABLE>
</CENTER>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="45%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD nowrap align="center" valign="top"><FONT size="2"><B>920 Hampshire Road, Suite&nbsp;A-34, Westlake Village, California</B><BR>
(Address of Principal executive offices)</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="center" valign="top"><FONT size="2">
<B>91361</B><BR>
(Zip Code)</FONT></TD>
</TR>
</TABLE>
</CENTER>
<P align="center"><FONT size="2">&nbsp;
</FONT>

<P align="center"><FONT size="2">Registrant&#146;s telephone number, including area code:(408) 296-0600
</FONT>

<P align="center"><FONT size="2">&nbsp;</FONT>
<!-- PAGEBREAK -->
<P><HR noshade><P>

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
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	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">Item&nbsp;7. Financial Statements, Pro Forma Financial Information and Exhibits</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001"> Item&nbsp;12. Results of Operations and Financial Condition</A></TD></TR>
<TR><TD colspan="9"><A HREF="v90404exv99w1.txt">EXHIBIT 99.1</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<!-- link1 "Item&nbsp;7. Financial Statements, Pro Forma Financial Information and Exhibits" -->
<DIV align="left"><A NAME="000"></A></DIV>
<P align="left"><FONT size="2">Item&nbsp;7. Financial Statements, Pro Forma Financial Information and Exhibits.
</FONT>

<P align="left"><FONT size="2">(c)&nbsp;Exhibits</FONT>

<P align="left"><FONT size="2">Exhibit&nbsp;99.1 &#151; Press release of Registrant, dated May&nbsp;12 2003.</FONT>

<!-- link1 " Item&nbsp;12. Results of Operations and Financial Condition" -->
<DIV align="left"><A NAME="001"></A></DIV>
<P align="left"><FONT size="2">Item&nbsp;12. Results of Operations and Financial Condition.
</FONT>

<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;12, 2003, we announced our results for the first quarter ended
March&nbsp;31, 2003. Our press release announcing the results is attached as
Exhibit&nbsp;99.1.
</FONT>
<P align="left"><FONT size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
</FONT>
<CENTER>
<TABLE cellspacing="0" border="0" cellpadding="0" width="100%">
<TR valign="bottom">
    <TD width="59%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD colspan="3" valign="top" align="left"><FONT size="2">SPATIALIZER AUDIO LABORATORIES, INC.<BR>
(Registrant)</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><FONT size="2">Date: May&nbsp;16, 2003</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">
By:</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">/s/ Henry R. Mandell</FONT></TD>
</TR>
<TR>
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><HR size="1" noshade></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">&nbsp;</FONT></TD>
    <TD><FONT size="2">&nbsp;</FONT></TD>
    <TD align="left" valign="top"><FONT size="2">Henry R. Mandell,<BR>
President and Chief Executive Officer</FONT></TD>
</TR>
</TABLE>
</CENTER>

<P align="center"><FONT size="2">2</FONT>



</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>3
<FILENAME>v90404exv99w1.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<PAGE>
                                                                    Exhibit 99.1


                                                     CONTACT: INVESTOR RELATIONS

                                                           HENRY R. MANDELL, CEO
                                           SPATIALIZER AUDIO LABORATORIES,  INC.
                                                             408-296-0600 EXT. 4
                                                        investor@spatializer.com

                  SPATIALIZER AUDIO LABORATORIES, INC. REPORTS
                      FIRST QUARTER 2003 OPERATING RESULTS

      Santa Clara, Calif., May 12, 2003- Spatializer Audio Laboratories, Inc.
(OTC Bulletin Board:SPAZ) today announced financial results for the first
quarter ended March 31, 2003.

      Revenues for the three months ended March 31, 2003 were $332,000, compared
to revenues of $440,000 in the comparable period last year, a decrease of 25%.

      The company reported a net loss for the quarter of $74,000, ($0.00) basic
per share, compared with net income of $21,000 ($0.00) basic and fully diluted
per share in the comparable period last year.

      The decrease in revenues resulted primarily from the wind down and
expiration of a license agreement with a major account and further reductions
from a second account which began outsourcing manufacturing to third parties.
These reductions were partially offset by increases in royalties from licensees
added over the past several months, including a third party manufacturer of an
existing customer.

      The net loss resulted from decreased revenues, partially offset by reduced
operating expenses.

      The Company's cash position improved to $894,000 at March 31, 2003 as
compared to $859,000 at December 31, 2002. The increase in cash and cash
equivalents is attributed to the decreases in accounts receivable. Spatializer
had working capital of $1,076,000 at March 31, 2003 as compared with working
capital of $1,125,000 at December 31, 2002.

      "As we reported two months ago, we expected a sharp downtrend in the first
and second quarters, resulting primarily from the expiration of a license
agreement with a major account," stated Henry R. Mandell, Chairman and CEO of
Spatializer Audio Laboratories, Inc. "In addition, another account began
outsourcing manufacturing, which disrupted our royalty revenue stream. While
discussions on future use of our technology continue with these accounts as part
of our aggressive licensing effort, timing was such that the revenue decline was
unavoidable, which frankly was less than we anticipated. This is because of
strong performances turned in by some of our newer licensees, including
<PAGE>
those who are manufacturing for others. This is one case where our aggressive,
customer-centric marketing approach over the past nine months has started to pay
off. ."

      Henry R. Mandell concluded, "Clearly, we have our work cut out for us in
2003 as we work to compensate for the dynamics in the marketplace. We will
compete vigorously with our traditional products and intend to win our fair
share of this business. Technology product life cycles are not endless and to
assume so is delusional. Spatializer is not just a technology licensing
company...we are a laboratory and there holds they keys to the future. We've
announced two new technology initiatives, Spatializer Audio Alchemy and
Spatializer Interactive, that we believe will drive the Company into new markets
and into areas offering greater growth opportunities. Spatializer Audio Alchemy,
with its combination of noise reduction, voice and music enhancement capability,
has struck a responsive chord with those prospects who have heard it. It fills a
need. It solves a problem. It is not just a nice feature to have...that's the
difference. Spatializer Audio Alchemy serves as a platform that is capable of
supporting a broad family of new products for digital recording, cellular
communications, PC and Internet-based applications. It is the future and it is
here. We look forward to communicating more on these initiatives in the coming
months."

ABOUT SPATIALIZER

Spatializer Audio Laboratories Inc. is a leading developer, licensor and
marketer of next-generation technologies for the consumer electronics, computing
and entertainment industries. The company's advanced audio technology is
incorporated into consumer electronics audio and video products from global
brand leaders including Toshiba, JVC, Panasonic, Hitachi, Samsung, Sharp and
Sanyo, among others. Spatializer stock is traded on the OTC Bulletin Board under
the symbol: SPAZ. The company is headquartered in Santa Clara, CA, with
executive offices in Westlake Village, CA and marketing offices in Tokyo, Japan.
Further information may be obtained from the company's web site,
www.spatializer.com, Spatializer's SEC filings, and by contacting the company's
Investor Relations Department at 408-296-0600 or by writing to
investor@spatializer.com.


SAFE HARBOR ACT STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF
1995: Certain information in this news release, including the comments by Mr.
Mandell 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, dependence on new technology and intellectual
property, dependence on the PC and consumer electronics industries, dependence
on product shipments of third-party licensees, competition and pricing
pressures, the timing and realizable value of the MDT technology, and other
risks detailed from time to time in the Company's periodic reports filed with
the Securities and Exchange Commission.


NOTICES: Spatializer is a registered and Spatializer Audio Alchemy and
Spatializer Interactive are trademarks of Desper Products, Inc.. Desper
Products, Inc. is a wholly owned subsidiary of Spatializer Audio Laboratories,
Inc. Copyright(C) 2003 Spatializer Audio Laboratories, Inc.



<PAGE>
                      SPATIALIZER AUDIO LABORATORIES, INC.
                                AND SUBSIDIARIES

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)

<TABLE>
<CAPTION>
                                              FOR THE THREE MONTH PERIOD ENDED
                                              ---------------------------------
                                                MARCH 31,           MARCH 31,
                                                  2003                2002
                                              -------------       -------------
<S>                                           <C>                 <C>
Revenues:
  License Revenues                            $         --        $         --
  Royalty Revenues                                 332,378             440,481
  Product Revenues                                      --                  --
                                              ------------        ------------
                                                   332,378             440,481
Cost of Revenues                                    35,942              28,202
                                              ------------        ------------
Gross Profit                                       296,436             412,279
Operating Expenses:
  General and Administrative                       156,402             135,335
  Research and Development                         109,003             123,603
  Sales and Marketing                              102,139             130,339
                                              ------------        ------------
                                                   367,544             389,276
                                              ------------        ------------
Operating Profit (Loss)                            (71,108)             23,003
Interest and Other Income                            2,492               3,489
Interest and Other Expense                          (2,813)             (2,813)
                                              ------------        ------------
                                                      (321)                677
                                              ------------        ------------
Income (Loss) Before Income Taxes                  (71,429)             23,680
Income Taxes                                        (3,020)             (2,400)
                                              ------------        ------------
Net Income (Loss)                             $    (74,449)       $     21,280
                                              ============        ============
Basic and Diluted Income (Loss) Per Share     $      (0.00)       $       0.00
                                              ============        ============
Weighted Average Shares
   Outstanding                                  47,406,939          47,406,939
                                              ============        ============
</TABLE>
<PAGE>
                          PART I. FINANCIAL INFORMATION

ITEM I. FINANCIAL STATEMENTS

                      SPATIALIZER AUDIO LABORATORIES, INC.
                                AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS

<TABLE>
<CAPTION>
                                                                        MARCH 31,         DECEMBER 31,
                                                                          2003               2002
                                                                       ------------      ------------
                                                                       (unaudited)
<S>                                                                    <C>               <C>
Current Assets:
     Cash and Cash Equivalents                                         $    893,577      $    858,725
     Accounts Receivable, net                                               345,500           499,023
     Prepaid Expenses and Deposits                                           91,777            82,920
                                                                       ------------      ------------
Total Current Assets                                                      1,330,854         1,440,668

Property and Equipment, net                                                  59,856            70,842
Intangible Assets, net                                                      212,809           225,859
Other Assets                                                                  6,853             8,471
                                                                       ------------      ------------
Total Assets                                                           $  1,610,372      $  1,745,840
                                                                       ============      ============

                      LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
     Notes Payable to Related Parties                                       112,500           112,500
     Accounts Payable                                                        31,993            39,027
     Accrued Wages and Benefits                                              76,703           108,771
     Accrued Expenses                                                        33,765            55,682
                                                                       ------------      ------------
Total Current Liabilities                                                   254,961           315,980

Commitments and Contingencies

     Series B-1, Redeemable Convertible Preferred shares, $.01 par
        value, 1,000,000 shares authorized, 102,762
        shares issued and outstanding at March 31, 2003
        and December 31, 2002.                                                1,028             1,028
Shareholders' Equity:
     Common shares, $.01 par value, 65,000,000 shares
        authorized, 47,406,939 shares
        issued and outstanding at March 31, 2003 and
        December 31, 2002.                                                  474,070           474,070
     Additional Paid-In Capital                                          46,402,704        46,402,704
     Accumulated Deficit                                                (45,522,391)      (45,447,942)
                                                                       ------------      ------------
Total Shareholders' Equity                                                1,354,383         1,428,832
                                                                       ------------      ------------

                                                                       $  1,610,372      $  1,745,840
                                                                       ============      ============
</TABLE>

                                      ###

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