-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 B+F7WljIZp/Ti1QN2iHuKP2BshVLcMV65QxGtBXf7lRC6Tu3FjVWOvw2jAn070fu
 1NY0HfvlkePs1hPF0a1A6Q==

<SEC-DOCUMENT>0000950129-04-003235.txt : 20040513
<SEC-HEADER>0000950129-04-003235.hdr.sgml : 20040513
<ACCEPTANCE-DATETIME>20040513150812
ACCESSION NUMBER:		0000950129-04-003235
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20040512
ITEM INFORMATION:		
FILED AS OF DATE:		20040513

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:		04802635

	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>v99075e8vk.htm
<DESCRIPTION>FORM 8-K - DATE OF REPORT: MAY 12, 2004
<TEXT>
<HTML>
<HEAD>
<TITLE>SPATIALIZER AUDIO LABORATORIES, INC.</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


<HR size="4" noshade color="#000000" style="margin-top: -5px">
<HR size="1" noshade color="#000000" style="margin-top: -10px">





<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>

<DIV align="center" style="font-size: 12pt"><B>Washington, DC 20549</B>
</DIV>

<P align="center" style="font-size: 18pt"><B>FORM 8-K</B>


<P align="center" style="font-size: 10pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 OR 15(d) of the Securities Exchange Act of 1934</B>



<P align="center" style="font-size: 10pt">Date of Report (Date of earliest event reported May&nbsp;12, 2004


<P align="center" style="font-size: 24pt"><B>SPATIALIZER AUDIO LABORATORIES, INC.</B>


<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="75%">
<!-- Begin Table Head -->
<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>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>000-26460</B>
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>95-4484725</B></TD>
</TR>

<TR valign="bottom">
    <TD align="center" valign="top">(State or other jurisdiction<BR>
of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top">(IRS Employer<BR>
Identification No.)</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt"><B>2625 Hampshire Road, Suite&nbsp;330, Westlake Village, California 91361</B><BR>
(Address of Principal executive offices)



<P align="center" style="font-size: 10pt">Registrant&#146;s telephone number, including area code: (408)&nbsp;453-4180



<P>
<HR size="1" noshade color="#000000" style="margin-top: -2px">
<HR size="4" noshade color="#000000" style="margin-top: -10px">








<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">








<!-- 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>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD></TD><TD colspan="8"><A HREF="#000">ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002">Exhibit&nbsp;Index</A></TD></TR>
<TR><TD colspan="9"><A HREF="v99075exv99w1.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>




<!-- link2 "ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION" -->
<DIV align="left"><A NAME="000"></A></DIV>

<P align="left" style="font-size: 10pt">ITEM 12. RESULTS OF OPERATIONS AND FINANCIAL CONDITION


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On May&nbsp;12, 2004, Spatializer issued a press release announcing its
operating results for the quarter ended March&nbsp;31, 2004. A copy of the press
release is furnished as Exhibit&nbsp;99.1 to this report and is hereby incorporated
to this Item&nbsp;9 by reference.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The information in this report (including exhibits hereto) shall not be
deemed &#147;filed&#148; for purposes of Section&nbsp;18 of the Securities Exchange Act of
1934 or the Securities and Exchange Commission&#146;s rules and regulations, nor
shall it be deemed incorporated by reference in any filing under the Securities
Act of 1933.



<P align="center" style="font-size: 10pt">2
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="center" style="font-size: 10pt"><B>SIGNATURES</B>


<P align="left" style="font-size: 10pt">&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.


<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top">&nbsp;</TD>
    <TD colspan="3">Spatializer Audio Laboratories, Inc.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>Date: May 13, 2004&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000">/s/ Henry R. Mandell
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD>Henry R. Mandell&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD>Chief Executive Officer and CFO&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt">3
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<!-- link1 "Exhibit&nbsp;Index" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="center" style="font-size: 10pt"><B>Exhibit&nbsp;Index</B>




<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="87%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid gray"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid gray"><B>Description of Exhibit</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Spatializer Audio Laboratories, Inc. press release dated May&nbsp;12, 2004</TD>
</TR>

<!-- End Table Body -->
</TABLE>
</DIV>




<P align="center" style="font-size: 10pt">&nbsp;
</DIV>


</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>v99075exv99w1.txt
<DESCRIPTION>EXHIBIT 99.1
<TEXT>
<PAGE>
                                                                    EXHIBIT 99.1



                                                     CONTACT: INVESTOR RELATIONS

                                                           HENRY R. MANDELL, CEO
                                           SPATIALIZER AUDIO LABORATORIES,  INC.

                                                             408-453-4180 EXT. 4
                                                        INVESTOR@SPATIALIZER.COM

                  SPATIALIZER AUDIO LABORATORIES, INC. REPORTS
                      FIRST QUARTER 2004 OPERATING RESULTS


        San Jose, Calif., May 12, 2004- Spatializer Audio Laboratories, Inc.
(OTC Bulletin Board:SPAZ) today announced financial results for the first
quarter ended March 31, 2004.

        Revenues for the three months ended March 31, 2004 were $171,000,
compared to revenues of $332,000 in the comparable period last year, a decrease
of 48%.

        Net loss in the three months ended March 31, 2004 was ($124,000),
($0.00) basic per share, compared with net loss of ($74,000), ($0.00) basic per
share in the comparable period last year.

        The decline in revenue resulted from the expiration of a licensing
agreement with a major computer account in January 2003 and the effects of cost
reductions by DVD player accounts resulting in outsourcing to manufacturers in
China who generally decline to pay for such software or where features must be
eliminated to achieve manufacturing cost targets. This was partially offset by
an increase in revenues from cell phone accounts that started shipping
commercial quantities with our technologies in the first quarter.

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

        At March 31, 2004, the Company had $647,000 in cash and cash equivalents
as compared to $589,000 at December 31, 2003. The increase in cash and cash
equivalents is attributed to the decreases in accounts receivable. The Company
had working capital of $663,000 at March 31, 2004 as compared with working
capital of $792,000 at December 31, 2003.

         "We continued to experience declining year-to-year revenues from DVD
customers, primarily from the curtailment or cessation of use of our products
due to intense on-going pressure on cost reduction," stated Henry R. Mandell,
chairman and chief executive officer of Spatializer Audio Laboratories, Inc. "On
the positive side, our overhead reduction initiative yielded strong results,
with a reduction in year-to-year quarterly overhead of nearly $100,000, or 25%.
Further, we saw the beginning of the ramp-up of revenue from the cell phone
market, which we are targeting, among others, to replace lost business in the
DVD player market and to fuel future growth."


<PAGE>

        Henry R. Mandell concluded, "The convergence of entertainment, computing
and communications is creating new and viable applications for Spatializer
technology. These platforms are less commoditized than DVD players. Impressive,
high quality audio is being perceived as a requirement to help bridge this
convergence. The response from these markets to our solutions has been strong.
As such, we expect to successfully penetrate markets that are new to Spatializer
where the competitive dynamics are more favorable to enhancing and expanding our
business. I look forward to providing more specific information in the future
when these transactions can be announced."


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, Samsung and Sharp, among others. Spatializer
stock is traded on the OTC Bulletin Board under the symbol: SPAZ. The company is
headquartered in San Jose, CA, with executive offices in Westlake Village, CA
and representative offices throughout Japan and in Korea. 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
408-453-4180 or by writing to investor@spatializer.com.

Safe Harbor Act Statement Under the Private Securities Litigation Reform Act of
1995: Certain information in this background 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, 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.


NOTICES: Spatializer is a registered and trademark of Desper Products, Inc.
Desper Products, Inc. is a wholly owned subsidiary of Spatializer Audio
Laboratories, Inc. Copyright (C) 2004 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,
                                            2004                2003
                                        ------------        ------------
<S>                                     <C>                 <C>
Revenues:
  License Revenues                      $         --        $         --
  Royalty Revenues                           170,679             332,378
  Product Revenues                                --                  --
                                        ------------        ------------
                                             170,679             332,378
Cost of Revenues                              17,004              35,942
                                        ------------        ------------
Gross Profit                                 153,675             296,436

Operating Expenses:
  General and Administrative                 166,630             156,402
  Research and Development                    95,482             109,003
  Sales and Marketing                         13,701             102,139
                                        ------------        ------------
                                             275,813             367,544
                                        ------------        ------------

Operating Profit (Loss)                     (122,138)            (71,108)

Interest and Other Income                        941               2,492
Interest and Other Expense                    (2,599)             (2,813)
                                        ------------        ------------
                                              (1,658)               (321)
                                        ------------        ------------

Income (Loss) Before Income Taxes           (123,796)            (71,429)
Income Taxes                                      --              (3,020)
                                        ------------        ------------

Net Income (Loss)                       $   (123,796)       $    (74,449)
                                        ============        ============

Basic (Loss) Per Share                  $      (0.00)       $      (0.00)
                                        ============        ============

Weighted Average Shares
   Outstanding                            47,015,865          47,406,939
                                        ============        ============
</TABLE>



<PAGE>
                      SPATIALIZER AUDIO LABORATORIES, INC.
                                AND SUBSIDIARIES

                           CONSOLIDATED BALANCE SHEETS

                                     ASSETS

<TABLE>
<CAPTION>
                                                                           MARCH 31,          DECEMBER 31,
                                                                             2004                2003
                                                                         ------------        ------------
                                                                          (unaudited)
<S>                                                                      <C>                 <C>
Current Assets:
     Cash and Cash Equivalents                                           $    647,148        $    589,797
     Accounts Receivable, net                                                 182,519             345,411
     Prepaid Expenses and Deposits                                              7,844              35,430
                                                                         ------------        ------------
Total Current Assets                                                          837,511             970,638

Property and Equipment, net                                                    38,221              42,022
Intangible Assets, net                                                        188,897             192,485
                                                                         ------------        ------------
Total Assets                                                             $  1,064,629        $  1,205,145
                                                                         ============        ============

                      LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities:
     Notes Payable to Related Parties, Short Term                              37,500              37,500
     Accounts Payable                                                          40,246              21,466
     Accrued Wages and Benefits                                                44,491              36,973
     Accrued Professional Fees                                                  5,000              20,000
     Accrued Commissions                                                       17,813              33,856
     Accrued Expenses                                                          29,197              28,197
                                                                         ------------        ------------
Total Current Liabilties                                                      174,247             177,992
     Notes Payable to Related Parties, Long Term                               57,771              70,746

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, 2004
        and December 31, 2003                                                   1,028               1,028

Shareholders' Equity:
     Common shares, $.01 par value, 65,000,000
        shares authorized, 47,015,865 shares issued
        and outstanding at March 31, 2004 and
        December 31, 2003                                                     470,159             470,159
     Additional Paid-In Capital                                            46,428,615          46,428,615
     Accumulated Deficit                                                  (46,067,191)        (45,943,395)
                                                                         ------------        ------------
Total Shareholders' Equity                                                    831,583             955,379
                                                                         ------------        ------------

                                                                         $  1,064,629        $  1,205,145
                                                                         ============        ============
</TABLE>



                                       ###

</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
