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D&M Reports Double-Digit Sales, Net Gains For Year

5/23/2007 01:42:00 PM Eastern

Tokyo — D&M Holdings reported double-digit gains in revenue, operating profit and net income for its fiscal year that ended March 31.

The company’s consolidated revenue for the fiscal year was a record $832.6 million, a 12 percent increase over the previous fiscal year. D&M’s operating profit was $47.6 million, a gain of 60 percent over the previous year while net income was up 22 percent to $24 million.

In its premium AV segment sales were $804.7 million, a gain of 16 percent over the year-ago results due to the inclusion of a full-year contribution from Boston Acoustics, the addition of new distribution channels, continued expansion of emerging markets and professional/commercial markets, market share gains for the company’s core target A/V channels, and contributions from D&M Premium Sound Solutions (PSS), which was acquired from Royal Philips Electronics in January.

Operating profit for the Premium A/V segment for the fiscal year was $47.9 million a 33 percent gain. The increase was due to a full-year contribution from Boston Acoustics, continued improvement in the operating performance of the company’s premium AV business, improved cost controls and the inclusion of PSS results, the company said.

Revenue from the Digital Network segment for the fiscal year was $18.9 million, 52 percent lower than the year-ago results. Revenue in this segment was higher in the previous fiscal year since the year included revenue from the discontinued Rio unit.

The Digital Network segment reported a small operating loss during the year ended March 31 of $337,537 primarily due to marketing and product development investments associated with the launch of PC-DVR products from ReplayTV, the company said.

“We are very pleased with our record performance in 2006,” said Eric C. Evans, Chairman & co-CEO of D&M Holdings. “The company’s earnings power is growing. Our brands are delivering innovative and high-quality CE products and are benefiting from our company’s world-class selling platforms,” he said.

Among some of the key accomplishments in the fiscal year, D&M mentioned the acquisition and integration of the D&M Premium Sound Solutions (PSS) and expanded marketing activities in the business unit’s automotive segment. Others were:

  • A research and development initiative to create premium advanced video media player, serving as a common platform for all D&M brands;

  • Denon and Boston Acoustics expanded their distribution reach to more than 600 Circuit City stores in North America. Denon also increased its distribution exposure through Magnolia Home Theaters inside Best Buy, with the number of those specialty boutiques tripling to 300.

  • Boston Acoustics added the all-new Chrysler Sebring convertible to its list of vehicles equipped with original equipment Boston Acoustics premium audio systems. This brings the total to 13 Chrysler Group vehicles available with Boston Acoustics audio systems.

D&M Holdings brands include Denon, Marantz, McIntosh, Boston Acoustics, ReplayTV and Escient.

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