A parametric loudspeaker system comprises a pre-compensator (305) for generating a pre-compensated envelope signal by applying a pre-compensation to the input audio signal where the pre-compensation compensates for distortion of in-air demodulation of the modulated ultrasound signal. A pre-modulator (307) generates a complex base band signal generating a phase signal from the pre-compensated envelope signal using a predetermined function for determining a phase signal from an amplitude signal such that the corresponding complex signal has either suppressed negative or positive frequencies. The complex base band signal is then generated to have an amplitude corresponding to the pre-compensated envelope signal and a phase corresponding to the phase signal. A modulator (309) quadrature modulates the complex base band signal on an ultrasonic quadrature carrier and an output circuit (311) drives the ultrasound transducer (301) from the modulated signal. The invention may allow effective yet low resource pre-compensation for a suppressed or single sideband modulated modulated ultrasound signal.