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Audio Only Drag On Recoton, SEC Report Indicates

Recoton is enjoying strong sales growth from its three business sectors and good operating earnings at two, according to its year-end filing with the SEC.

As previously reported, Recoton’s sales for the year rose 39.5% to $700.4 million, but though operating income jumped 36.8% to $26.6 million, net fell 68% to $4.33 million after a $15 million charge to cover the estimated cost of settling a dispute with U.S. Customs.

Recoton’s first-ever breakout of operating results by sector shows that sales of its core accessories business rose 14.7% last year to $222.4 million and produced pre-tax earnings of $14.3 million.

The PC and video game controller and accessories sector had a 93% revenue surge to $243,900 and generated earnings of $27.4 million.

Recoton Audio, which includes Jensen products, had a 28% sales rise to $234.1 million and a loss of $884,000.

Because of accounting changes, Recoton didn’t have 1997 earnings comparisons. But it did report that gross profit was up 33.1% to $86.8 million from accessories, up 71.1% from PC and game peripherals, and up 12.6% to $73.9 million at Recoton Audio.