Peabody, Mass. - Although sales dropped 24 percent in its fiscal fourth quarter and 29 percent for its fiscal year, Boston Acoustics turned a profit in both periods - mainly by improving margins, reducing operating expenses and converting excess inventory into cash.
Boston Acoustics, which provides audio solutions for home entertainment, autos and personal computers, reported sales of $20.1 million in the fourth quarter ended March 30, down from $26.6 million in the year-ago period.
Net income climbed to $1.5 million in the fourth quarter, compared with a loss of $1.3 million in the same period in 2001. The results for the fourth quarter benefit from a lower effective income tax rate.
Sales for the fiscal year dropped to $83.2 million, down from $117.7 million in the year-ago 12 months. Net income for the 12 months was essentially the same, at $3.91 million for the current 12 months vs. $3.90 year over year.
Of the $34.5 million decrease in sales for the fiscal year, Boston Acoustics attributed almost $31 million of this to its OEM/Multimedia segment of the business. The remainder of the decrease resulted from a decline in International Core sales.
Boston Acoustics said it has reduced its debt by $9 million and repurchased $3.2 million of company stock.