Emerson Sales Up 17.7% In Q1

Parsippany, N.J.— With unit sales increases of audio products and licensing revenue leading the way, Emerson Radio recorded a 17.7 percent jump in consumer electronics revenue in its fiscal first quarter, to $57.9 million, compared with $49.2 million in the first three months of last year. The sales increase was partially offset by a decrease in sales of microwave ovens.

CE gross margin in the first quarter climbed 350 basis points, to 19.6 percent, up from 16.1 percent in the year-ago quarter. The hike was attributed to a growth in licensing revenue and improved margin on audio and microwave oven products.

CE operating income surged to $4.4 million in the first quarter, up from $2.4 million in the same year-ago three months. Net income for the CE segment improved to $2.6 million in the current quarter, compared with $2.5 million in the same quarter in 2001. Net income would have been $4.4 million in the first quarter, absent a non-cash tax expense.

Emerson, which is reporting its first quarter financial results a mere three weeks after reporting fourth quarter figures, said consolidated revenue hit $84.7 million, up from $77.1 million in the year-ago first quarter. The sporting goods segment accounted for $26.8 million, down from $28 million year over year.

Overall operating income for Emerson's first quarter increased 106 percent, reaching $5.5 million, up from $2.7 million in the same three months last year. Net income hit $2.7 million for the first quarter, compared with $2.2 million year over year.