Peabody, Mass.— Boston Acoustics cited a planned cutback in purchases by a major, unnamed customer for an expected net operating loss for its fiscal 2005 first quarter ending in June.
The electronics company, however, expects the reduction to “be offset in significant part by expected increases in sales to other companies.” The increases will return the company to profitability for the full 2005 fiscal year, which begins at the end of March, the company said. Fiscal 2004 full-year and fourth-quarter sales haven’t been released.
The anonymous customer will reduce purchases from Boston by about 50 percent beginning in May, Boston said. The customer accounted for about 32 percent of Boston’s consolidated net sales for the nine months ending in December.
Nine-month net sales for the period ending December 27 were $41.1 million, and the customer’s 32 percent share of that business accounted for about $13.2 million during that period.
Competing suppliers and retailers believe the customer is Tweeter, Boston’s largest retail account after Ultimate Electronics dropped Boston about a year ago. Boston’s biggest retailers now include Harvey Electronics, Myer-Emco and Magnolia.