Emerson Fiscal Q2 CE Revenue Drops 13%

PARSIPPANY, N.J.— Responding to a slowing economy and reduced consumer spending, retailers have been maintaining a tight hold on inventory levels, sending consumer electronics revenue at Emerson Radio down 13 percent in the fiscal second quarter to $83.3 million.

By comparison, during Emerson's first and second fiscal quarters of last year, retailers pressed for higher-than-traditional merchandise shipments, resulting in CE revenue of $96.1 million during the company's fiscal second quarter.

Emerson restricted the revenue decline in the second quarter ending Sept. 30 primarily to audio products and microwave ovens. Licensing revenue, which is primarily associated with video products, and has minimal associated costs, was strongly ahead of last year.

The CE segment reported net income of $5 million in the second quarter, compared with $5.6 million in the same three months in 2000.

For the first fiscal half, CE revenue was $132.4 million, compared with $178.7 million the previous year. Net income for the company's CE segment dropped to $7.4 million, compared with $8.8 million for the same six months in 2000. Licensing revenue for the first half rose 145 percent to $2.7 million, up from $1.1 million in the same period last year.

Emerson recorded consolidated total net revenue of $111.5 million in the second quarter, down from $128.1 million in the same period last year. This included the company's sporting goods segment. Net income for the second quarter dipped to $4.7 million, down from $5.1 million in the year-ago period.

For the six months, consolidated total net revenue reached $188.6 million, compared with $241.4 million the previous year. Net income for the six months dropped to $6.9 million, compared with $8.2 million in the same six months in 2000.