DirecTV Revenue Rises 13%, U.S. Biz Up 22%
El Segundo, Calif. — Heartened by a move into the black and 1.1 million gross subscriber additions, television service provider DirecTV posted a 13 percent increase in consolidated third-quarter revenue, climbing to $3.2 billion from a year-ago $2.9 billion.
St. Louis — The hurricane season took its toll on battery maker Energizer Holdings in the company’s fiscal fourth quarter, with North American battery sales in the period edging downward 3 percent to $320.5 million, from $331.7 million in the year-ago three months.
New York — Sirius Satellite Radio’s third-quarter revenue more than tripled, rising 250 percent to $66.8 million from a year-ago $19.1 million.
Tokyo — Fiscal first-half sales in the recording media business at TDK dropped 11.9 percent, down to $429.5 million, from $487.7 million in the year-ago quarter, as declining sales of audio and video tapes outweighed the gains made by optical media.
Tokyo — Fiscal first-half revenue in the digital media and consumer products business at Hitachi declined 5 percent to $5.3 billion, from $5.6 billion year-on-year, due mainly to lower sales of flat-panel televisions, including plasma TVs and home appliances.
Tokyo — Plasma sales increased, negating a drop in sales of DVD products, lifting the home electronics business at Pioneer 6.6 percent in the company’s fiscal second quarter, hitting $706.9 million, up from $663.4 million in the same three months last year. Rockford Q3 Sales Off 23%; Net Loss Narrows, Margin Jumps
Tempe, Ariz. — Rockford, an audio systems designer, marketer and distributor for the mobile audio aftermarket, reported a 23 percent decrease in sales for the third quarter, down to $30.2 million, from a year-ago $39.2 million. The company said it continues to work its programs and discount structure to improve profitability of its sales, which contributed to the reduction of net sales in the third quarter. Rockford reduced its net loss to $418,000 in the third quarter, ended Sept. 30, compared with a loss of $31.4 million year-on-year. The loss narrowed due to divestiture of non-core assets and businesses and a reduced number of brands, which allowed the company to simplify its product line and reduce operating expenses substantially, thus positively affecting operating income.Gross margin in the third quarter increased to 30.9 percent, from a year-over-year 9.9 percent. For the nine months, sales declined to $107.7 million, from $126.3 million in the same period in 2004. Net loss for the nine months narrowed to $1.3 million, from the prior year’s net loss of $39.3 million.
UTStarcom Sales Off In Q3; Reports Loss Due To Charges
Alameda, Calif. — Broadband, wireless and handset solutions company UTStarcom reported third quarter sales of $635.3 million, down from $645 million in the year-ago three months. Net loss for the period ended Sept. 30 was $402.7 million, compared with net income of $5 million year-on-year. UTStarcom said the current loss includes charges of about $341.4 million associated with long-lived asset impairment, the tax effect of the impairment, and deferred tax asset valuation allowance. The company said its challenges ahead to boost sales and income include narrowing its strategic product focus, expanding worldwide sales, completing corporate restructuring and improving operational execution. For the nine months, sales climbed to $2.3 billion, up from a year-earlier $2 billion, while net loss came in at $439.4 million, compared with net income of $103.6 million in the same nine months last year.
Plantronics Fis. Q2 Headset Business Climbs 15%, Earnings Slide
Santa Cruz, Calif. — Revenues from Bluetooth headsets for cellphone applications climbed sharply in the fiscal second quarter at Plantronics, offset by declines in sales of corded headsets for similar applications. The two product categories are part of Plantronics’ audio communications group — mainly office headsets — which posted a 15 percent increase in sales for the three months, reaching $150.3 million, compared with $130.2 million in the year-ago period. However, operating income for the group slipped to $20.4 million for the second quarter, ended Sept. 30, down from a year-earlier $33.4 million. At the same time, gross margin decreased to 45.5 percent, from 53.4 percent. The company cited overall reduction in the efficiency of manufacturing operations, lower unit production due to the drop in mobile corded headsets, excess and obsolete inventory and higher warranty obligations as reasons for the decline. The company’s new audio entertainment group, formed following the purchase of Altec Lansing last August, did $21.9 million in revenue in the second quarter. Consolidated second quarter revenue hit $172.2 million, up from $130.2 million the previous year, while net income came in at $13.7 million, down from $24.7 million year-on-year.
Ingram Micro N.A. Sales Rise 1% In Q3, N.A Operating Income Climbs
Santa Ana, Calif. — Sales in North America for technology distributor Ingram Micro edged upward 1 percent in the third quarter, hitting $3.09 billion, up from $3.05 billion in the year-ago period. North America accounted for 44 percent of total company revenue in the three months. Operating income for North America reached $43.7 million in the third quarter, ended Oct. 1, compared with a year-on-year $39.1 million. Excluding major reorganization costs, operating income was $48.5 million. For the nine months, North American sales hit $8.9 billion, a 4 percent rise over the $8.6 billion recorded in the same period last year. Consolidated Ingram micro sales for the third quarter reached $7 billion, a 16 percent jump over the $6 billion posted the prior year. Third quarter net income was $48.4 million, compared with $77.3 million in the same three months in 2004. For the nine months, consolidated sales hit $20.8 billion, up from a year-on-year $18 billion. Net income for the nine months dipped to $132.5 million, compared with $140.7 million in the first nine months a year ago.
Lexmark Q3 Revenue Drops 4%, Net Income Cut By Over 50%
Lexington, Ky. — With laser and inkjet printer revenue down 10 percent year-over-year in the third quarter, printing and imaging solutions supplier Lexmark International reported an overall 4 percent slide in quarterly revenue, down to $1.22 billion for the three months ended Sept. 30, from $1.27 billion in the year-ago period. Net earnings dropped by more than half, to $70.2 million in the third quarter, from $156.1 million the previous year. Lexmark, which said it has been focusing strengthening efforts long term, reduced prices in the third quarter to improve hardware competitiveness and drive future sales. More aggressive pricing and promotional activities, plus weak demand, accounted for the drop in printer revenue. Supplies revenue was up 1 percent year-on-year, with growth slowed due to changes in channel inventories and soft end-user demand for both laser and inkjet supplies. Gross profit margin in the three months decreased to 29.4 percent, compared with a year-ago 35.2 percent. For the nine months, revenue rose 2 percent, hitting $3.9 billion, up from $3.8 billion in the same period in 2004. Net income dropped to $274 million, from a year-on-year $413.7 million. Gross profit margin was 32.4 percent in the third quarter, compared with 34.4 percent in the same time frame the prior year.
SanDisk Q3 Revenue Soars 45%, Net Income Doubles
Sunnyvale, Calif. — Adoption of flash storage products in music-enabled mobile phones that require high-capacity cards played a key role in SanDisk reporting a 45 percent increase in third quarter revenue, which hit $589.6 million, up from $$408 million in the same quarter last year. Net income in the third quarter, ended Oct. 2, rose to $107.5 million, about doubling from $54.1 million the previous year. Product gross margin was 37 percent in the three months, compared with 29 percent in the third quarter of 2004. Total gross margin was 44 percent of revenue in the third quarter, compared with 36 percent year-over-year. Revenue from licensing and royalties was $59.9 million in the quarter, a 40 percent rise over the $42.9 million recorded in the same three months the prior year. For the nine months, SanDisk revenue increased to $1.5 billion, from $1.2 billion the previous year. Net income reached $252.5 million in the nine months, compared with $188.3 million in the same time frame a year ago.
Imation Q3 Revenue Rises 15.2%, Net Income Soars 75%
Oakdale, Minn. — Magnetic and optical removable data storage media supplier Imation reported a 15.2 percent rise in revenue in the third quarter, hitting $298.6 million, up from $259.3 million in the year-ago period. The company said it enjoyed broad-based revenue growth across major product categories in optical, tape and flash media, and across all major geographic selling regions. Despite record petroleum prices that put upward pressure on raw materials, transportation and utility costs, Imation recorded a 75 percent increase in third quarter net income, including discontinued operations, reaching $16.8 million, compared with $9.6 million in the same quarter last year. Gross margin rose to 23.6 percent in the three months, ended Sept. 30, up from 22.8 percent in the same period in 2004. Imation’s expenses decreased due to ongoing cost reduction efforts, but, even so, the company said it is looking at the possibility of selective price increases going forward. For the nine months, sales reached $915.1 million, compared with $857.9 million year-on-year, while net income rose to $69.5 million for the period, from $37.8 million last year.
Logitech Sales Rise 28%; Audio/Video, Gaming Categories Lead The Way
Fremont, Calif. — Continued explosive growth in audio sales and strong growth in the video and console-gaming categories elevated overall fiscal second quarter sales 28 percent at Logitech International, to $422.1 million, from $329.6 million in the year-ago period. Retail audio category sales more than doubled, hitting $74.6 million in the fiscal second quarter, ended Sept. 30, up from $33.1 million year-on-year, while video category sales in the period moved up 28 percent, to $61.4 million, from a year-ago $48 million. Audio demand centered on PC speakers and products for iPod/MP3 players, while video interest mainly reflected the increasing use of video communications over the Internet. Retail sales of console-gaming products increased 62 percent, fueled by sales of PlayStation Portable systems. Overall gaming category sales reached $31 million in the second quarter, compared with $25 million in the same period last year. Logitech second quarter net income hit $36.2 million, a 39 percent increase over the $26 million recorded year-on-year. Gross margin was 31.4 percent, down from 33.2 percent. Retail sales growth in the Americas climbed 28 percent in the second quarter.
Kodak Digital/Film Imaging Segment Reports 14% Slide In Q3 Sales
Rochester, N.Y. — The Eastman Kodak U.S. digital and film imaging segment reported a 14 percent decrease in third quarter sales, down to $839 million, from $970 million a year earlier. This segment, which provides consumers with digital and traditional products and services, reported earnings from operations of $108 million in the third quarter, ended Sept. 30, down 53 percent from the $230 million earned the same three months in 2004. Highlights for the quarter included a 48 percent increase in the sales of Kodak Picture Maker kiosks and related media; a 45 percent jump in sales of home printing products and media, including Kodak Easyshare printer docks; and a 20 percent rise in consumer digital capture sales, which includes Kodak Easyshare cameras. Kodak said for the first time it garnered more revenue in a quarter from digital products than from traditional film and paper. Consolidated Kodak revenue moved up 5 percent in the third quarter, hitting $3.6 billion, compared with $3.4 billion year-over-year. This was led by a 47 percent increase in the sale of digital products and services. Consolidated net loss was slightly over $1 billion in the third quarter, compared with $458 million in earnings in the same three months in 2004, due mainly to a $900 million non-cash charge for taxes.