By Lisa Johnston
New products on display at the American International Toy Fair, held in N
D&M Holdings revenue grew 18 percent to $781 million during the first nine months of its 2007 fiscal year ending Dec. 31, but net income fell 6 percent to $21.1 million and operating profit fell 13 percent to $35.1 million.
Net income fell less than operating profit in part because of a third-quarter one-time extraordinary gain on the sale of D&M's Replay TV unit. The exchange rate used by the company was 107.35 yen to the U.S. dollar.
D&M operated in the black for the first nine months of its fiscal year despite a first-quarter net-income loss and operating loss.
For the nine-month period, revenues and operating profits from D&M's commercial AV brands were up, respectively, by 151 percent to $230.5 million and 31 percent to $13.9 million, largely because of the acquisition of Philips' OEM speaker business, now called D&M Premium Sound Solutions.
In the consumer A/V segment, nine-month revenues were down 3 percent to $550.5 million, and operating profit was down 29 percent to $21.2 million. The company attributed the segment's sales declines to falling sales of DVD players before releasing new Blu-ray players combined with larger than normal shipments in fiscal 2006 "required for the start of business with a U.S. mega-retailer [Circuit City]," the company said. D&M attributed the consumer-segment decline in operating profits to falling DVD sales and "additional product development expenses relating to advanced DVD products."
For the nine-month period, consumer A/V accounted for 70 percent of revenue and 60 percent of operating profit. The consumer segment includes Boston Acoustics, Denon, Escient, Marantz, McIntosh and Snell.
This TWICE webinar, hosted by senior editor Alan Wolf, will take a look at what may be the hottest CE products at retail that will be sold during the all-important fourth quarter. Top technologies, market strategies and industry trends will be discussed with industry analysts and executives.