Emerson Reports Fiscal Q2 CE Sales Rise 10%
By Jeff Malester -- TWICE, 11/11/2002
PARSIPPANY, N.J.— Expanding audio product sales and enhanced licensing revenue helped the consumer electronics segment at Emerson Radio post a 9.9 percent net revenue increase in the fiscal second quarter, hitting $91.6 million, up from $83.3 million in the year-ago period.
Consumer electronics segment operating income in the second quarter at Emerson climbed 50 percent, reaching $8.9 million, compared with $5.9 million in the same three months last year. Net income rose 20 percent, to $6 million, from $5 million year-on-year. Gross margin jumped 410 basis points in the quarter, hitting 19.2 percent, up from 15.1 percent the previous year.
"Our consumer electronics business is solidly performing by generating substantial earnings and strong cash flow on improving margin," said chairman/CEO Geoffrey P. Jurick. "As revenue continues to rise, we have been very encouraged by the robust sell-through on Emerson-branded products and various licensed products."
For the six months, Emerson CE net revenue climbed 12.8 percent, reaching $149.5 million, up from $132.5 million in the same period in 2001.
Six month operating income for the CE segment improved 55.9 percent, to $13.9 million, from $8.9 million in the same six months last year, while net income was up 15.7 percent, reaching $8.6 million, up from $7.4 million the previous year.
Consolidated net revenue, including Emerson's sporting goods segment, increased to $117.7 million in the second quarter, up from $111.6 million in the same three months in 2001.
Consolidated operating income reached $9 million for the quarter, compared with $5.6 million in the same period last year. Net income moved up to $6 million in the second quarter, compared with $4.7 million year-on-year.
For the six months, net revenue rose to $202.3 million, up from $188.7 million in the second quarter of 2001.
Consolidated operating income jumped to $14.5 million in the six months, from $8.2 million, while net income reached $8.6 million for the six months, compared with $6.9 million in the same period last year.
