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Rockford announced that it reached a tentative agreement to sell the assets of Q-Logic and reported continued, though narrower, losses for 2005.
Rockford said it will sell the Q-Logic speaker enclosure business with assets of about $3 million to members of Q-Logic's current management team. The deal is expected to be completed by early in the second quarter, if not before.
President/CEO Gary Suttle said the sale of Q-Logic is part of an overall plan to reduce overhead to stem recent losses.
Rockford reported a loss of $254,000 for the year, ended Dec. 31, 2005, compared to an operating loss of $26.6 million the previous year. For the fourth quarter of 2005, sales declined 19 percent to $27.9 million over the quarter in 2004. Net sales for the year decreased 15.7 percent to $135.7 million.
Suttle said Rockford is moving to outsource many of its products and is now outsourcing its highest volume speakers, the P1. It has also initiated the outsourcing of its amplifiers. The company reported that it boosted its OEM sales, which now represent more than 10 percent of its business.
Rockford said it expects continued sales declines through 2006, said Suttle.
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