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Mix Of High, Low Results For CE Companies

5/08/2012 12:01:00 AM Eastern
NEW YORK – We are in the midst of quarterly results season (see stories on page 8, at left, and on page 30) with many of the reports providing illustrations of the highs and lows industry players can produce. Here is a roundup of results from the past two weeks:

Amazon.com reported a first-quarter earnings decline of 35 percent to $130 million for the three months, while North America segment sales, increased 36 percent to $7.4 billion, and sales of electronics and other general merchandise in North America rose 44.5 percent to nearly $4.8 billion, or 65 percent of the merchandise mix.

Apple continues to amaze with revenue of $39.2 billion and net profit of $11.6 billion in its fiscal second quarter, ended March 31. These results compare with revenue of $24.7 billion and net profit of $6.0 billion in the year-ago quarter.

Among the highlights, Apple sold 35.1 million iPhones in the quarter, representing 88 percent unit growth over the year-ago quarter, and sold 11.8 million iPads during the quarter, a 151 percent unit increase over the year-ago quarter.

Cobra Electronics
reported higher sales and income for the first quarter of 2012. Net income for the quarter was $339,000, compared with a net loss of $819,000 for the prior-year period. Cobra said the improvement reflected an increase in net sales to $26.4 million, from $22.4 million in the first quarter of 2011, and an increase in gross margin to 28.7 percent, from 26 percent in the prior year’s first quarter.

Nintendo reported its first-ever annual operating loss of $460.9 million (37.3 billion yen) as sales of its Wii and 3DS systems produced lower-thanexpected results. For the fiscal year, ended March 31, Nintendo reported a net loss of $532.5 million (43.2 billion yen) from a year ago, when the company reported a $958.9 million (77.6 billion yen) profit. The video game maker also reported a 36.2 percent drop in revenue to $8 billion (647.6 billion yen), from more than 1 trillion yen reported on March 31, 2011.

Office Depot sales were approximately $2.9 billion, down 3 percent compared with the first quarter of 2011 with net earnings, $41 million in the first quarter, compared with a loss of $15 million in the first quarter of 2011. In the North American retail division, first-quarter sales were $1.2 billion, a decrease of 8 percent compared with the prior year. Same-store sales in the first quarter of 2012 from the 1,096 stores that have been open for more than one year decreased 6 percent.

SiriusXM said rising new car sales, a subscription price increase, strong subscriber growth and reduced churn helped raise its first-quarter revenues by 11 percent to $805 million and net income by 38 percent to $107.8 million, the company reported. SiriusXM said it added 405,000 net new subscribers in the quarter, up from a year-ago 373,064, bringing its subscriber base to a record 22.3 million. The gains were greater than in any first quarter since the 2008 merger of Sirius and XM, CEO Mel Karmazin said.

Systemax said weakness in its domestic CE retail business sent first-quarter net earnings down 47.8 percent to $7.1 million for IT vendor and merchant Systemax. Net sales slipped 2 percent to $913.6 million for the three months ended March 31, but consumer sales through its CompUSA, TigerDirect and CircuitCity.com properties — as well as through TV shopping networks and its inbound call centers and Misco and WStore European CE chains — fell 11 percent to $400.9 million.
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