DTS Q4 Revenue Jumps 12%, Net Slides

Agoura Hills, Calif. — Multichannel audio company Digital Theater Systems recorded a 12 percent increase in fourth-quarter revenue, climbing to $16.6 million from $14.9 million. Net income for the three months, ended Dec. 31, hit $192,000, down from $3.3 million in the same quarter in 2003. Included in the net income for the fourth quarter of 2004 is a charge of $2.5 million for write-down of excess and obsolete monochrome projector inventory. The company said its core consumer licensing business posted solid growth overall, with continued strength in the DVD and home theater markets. DTS technology, namely decoders for 5.1-channel surround sound processors, is said to be included in 300 million DTS-licensed consumer electronics available worldwide. For the 12 months, revenue increased 19 percent to $61.4 million from a year-ago $51.7 million. Net income, including the inventory write-down hit $10 million, compared with $9.9 million in 2003.

UTStarcom Q4 Sales Increase 15%, Takes Pre-Tax Loss

Alameda, Calif. — UTStarcom, the company that purchased Audiovox’s cellphone business last year, and sells wireline, wireless, optical and switching solutions to operators in global telecommunications markets, enjoyed a 15 percent increase in consolidated fourth-quarter revenue, hitting $742 million, up from $643.6 million in the year-ago period. The company announced a pretax loss of $66.4 million in the fourth quarter, ended Dec. 31, and expects to record a tax benefit for the period. Fourth-quarter net income will be released once the full impact of the tax benefit on earnings is released. The company said it still is in the process of determining the extent of the expected income tax benefit and the resulting net income calculation. Consolidated gross profit margin was 14.2 percent of sales in the fourth quarter. Gross profit margin for the historical business, excluding the personal communications division business acquired from Audiovox last November, was 20.1 percent of sales. Gross profit margin for the personal communications division business was 4.3 percent of sales. UTStarcom’s personal communications division shipped 1.5 million cellphone units in November/December of 2004. Consolidated sales for the 12 months climbed to $2.7 billion, a 38 percent jump over the $2 billion reported in 2003.

SanDisk Q4 Revenue Rises 41%, Net Income Drops Due To Higher Tax Rate

Sunnyvale, Calif. — Flash storage card supplier SanDisk reported a 41 percent increase in fourth-quarter revenue, hitting $548.9 million, up from a year-ago $389.3 million. However, fourth-quarter net income, which reflected a 37 percent tax rate, reached $78.3 million, down from $87.8 million in the same three months in 2003, which reflected a 20 percent tax rate. SanDisk said units sold in the fourth quarter, ended Jan. 2, jumped 55 percent year-over-year. For the 12 months, revenue climbed 65 percent to $1.8 billion, from $1.1 billion in 2003. Product revenue rose 63 percent to $1.6 billion, from $1 billion for the 12 months, while license and royalty revenue jumped 79 percent to $174 million for the year, compared with $97 million the previous year. Average price per megabyte sold in the fourth quarter declined 56 percent from the corresponding three months in 2003. Product gross margin in the fourth quarter was 32 percent, down from a year-over-year 36 percent, but still better than the 29 percent registered in the third quarter.

Boston Acoustics Q3 Sales Rise 16%, Net Income Climbs 79%

Peabody, Mass. — New product debuts in core product categories, as well as increases resulting from its OEM automotive business, propelled fiscal third-quarter sales at Boston Acoustics 16 percent higher in the period ended Dec. 25, hitting $17.9 million, up from $15.4 million year-on-year. Net income for the third quarter soared 79 percent, reaching $1.8 million, compared with $1 million in the third quarter of 2003. “The achievement of an approximate 98 percent increase in operating income, compared with the corresponding three-month period a year ago, signals that as sales increase, the company is in position to capture even greater profits,” said Moses Gabbay, president/CEO. Operating income hit $2.3 million in the third quarter, up from a year-ago $1.2 million. For the nine months, sales climbed 4 percent, reaching $42.8 million from $41.1 million a year earlier. Net income nearly doubled to $2.5 million in the nine months, compared with a year-ago $1.4 million.

Imation Q4 Revenue, Income Edges Downward

Oakdale, Minn. — Demand for tape products rebounded after a soft third quarter and margins improved in optical products, yet Imation revenue still dipped for the three months, ended Dec. 31, down to $326.2 million from a year-on-year $334.4 million. Net income dropped to $5.1 million in the fourth quarter, compared with $24.7 million in the same period in 2003. However, Imation reported a $22.1 million restructuring charge in the three months. Gross margin for the quarter slid to 22.9 percent from a year-ago 26.4 percent. This was negatively impacted by lower manufacturing volumes as the company reduced inventory levels, start-up costs for a new tape-coating facility, inventory write-offs and a less favorable product mix. For the 12 months, revenue at the magnetic and optical removable data storage media company increased 4.8 percent to $1.22 billion from $1.16 billion. But net income for the 12 months was cut about in half, down to $42.9 million from a year-earlier $82 million. Gross margin dropped from 28.8 percent, to 24.6 percent for the year. Restructuring charges in the 12 months reached $25.2 million.

Double-Digit Hardware, Supplies Growth Boosts Lexmark Q4 Revenue 0.013%

Lexington, Ken. — Double-digit hardware and supplies revenue growth pushed up fourth-quarter revenue at Lexmark International by 13 percent, hitting $1.5 billion, from $1.4 billion in the year-ago period. Laser and inkjet revenue climbed 16 percent year-on-year, while laser and inkjet supplies jumped 13 percent. Net earnings increased 12 percent to $155 million in the fourth quarter, ended Dec. 31, compared with $138.8 million in the same three months in 2003. Gross profit margin rose to 32 percent for the fourth quarter, up from 31.9 percent a year ago. Operating expenses, which included about a $15 million increase in advertising, were $297.2 million, compared with $249 million the prior year. Operating income was a record $196.8 million, up from $187.8 million in the fourth quarter a year earlier. For the 12 months, revenue rose 12 percent to $5.3 billion from $4.8 billion, while net earnings hit $568.7 million, compared with $439.2 million. Gross profit margin was 33.7 percent, up 1.2 points from 2003. Operating income soared 23 percent for the year, to $732.1 million from $593.9 million. Full-year capital expenditures were $198 million.

 

Kodak Digital Camera/Imaging Segment Sales Rise 3% In Q4

Rochester, N.Y. — An increase in digital camera and photo-print kiosk sales helped boost Eastman Kodak fourth-quarter U.S. digital and film imaging systems segment sales 3 percent to $1.2 billion from a year-on-year $1.1 billion. Consumer digital capture sales rose 49 percent in the three months, ended Dec. 31, including a 48 percent rise in Picture Maker kiosk sales. Overall digital and film imaging systems fourth-quarter sales, including outside the United States, dropped 3 percent to $2.55 billion from $2.62 billion the previous year. Due to cost reductions, digital camera/imaging segment earnings from continuing operations before interest and other income in the fourth quarter increased to $149 million, from $141 million in the same period in 2003. For the 12 months, digital segment sales were flat at $3.8 billion, while earnings from continuing operations before taxes increased to $609 million, from $418 million. Consolidated Kodak sales in the fourth quarter hit $3.8 billion, a 3 percent rise, compared with $3.6 billion in the same quarter a year ago. Kodak reported a net loss of $12 million in the three months, compared with net income of $19 million year-over-year. Consolidated 12-month sales were $13.5 billion, up from $13 billion, while net income reached $649 million, compared with $265 million a year ago.

Release Date: 
2005-02-11 19:08:00
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New York - A roundup of the week's financial news.
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