Directed Reports Record Sales, Net For Year, Q4
By Staff -- TWICE, 3/26/2007
VISTA, CALIF. — Directed Electronics reported record sales and net income results for the fourth quarter and year, ended Dec. 31, 2006.
Net sales in the fourth quarter of 2006 were $210 million, an increase of 55 percent over the prior year fourth-quarter net sales of $136 million. Gross sales of security and entertainment products in the fourth quarter of 2006 were $104 million, an increase of 66 percent over the prior year fourth quarter.
Directed said Polk Audio represented $28 million of gross security and entertainment sales in the fourth quarter of 2006. Gross sales of satellite radio products were $114 million, an increase of 50 percent over the prior year's fourth quarter.
Pro forma net income for the quarter increased 46 percent to $16 million compared with pro forma net income of $11 million in the prior year period. GAAP net income for the fourth quarter was $10.8 million compared with a GAAP net loss of $9.6 million in the prior year period.
For the full year, net sales were $438 million, an increase of 44 percent over the prior year's net sales of $305 million. Gross sales of security and entertainment products, including $30 million attributable to Polk Audio, were $229 million, an increase of 20 percent over the prior year. Gross sales of satellite radio products were $220 million, an increase of 82 percent over the prior year.
Pro forma net income for the year, ended Dec. 31, 2006, was $27.3 million, a 63 percent increase over the $16.8 million. GAAP net income for the year increased to $21 million, compared with a net loss of $5.1 million.
Pro forma gross profit for the fourth quarter of 2006 increased 46 percent to $60.7 million, or 28.9 percent of net sales, compared with $41.5 million, or 30.6 percent of net sales, in the prior year period. The gross margin decrease in the fourth quarter of 2006 was primarily due to increased sales of satellite radio receivers to Sirius.com, a lower margin customer. (For more on Directed's Sirius business, see p. 33.)
For the full year pro forma gross profit increased 27.8 percent to $129 million, or 29.5 percent of net sales, compared with $101 million in 2005, or 33 percent of net sales.
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