Earnings Briefs - Twice

Earnings Briefs

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Dell Q4 Income Rises 5%

Austin, Texas - Bolstered by strong demand for personal computers in its fiscal fourth quarter, Dell reported net income of $456 million, a 5 percent increase, compared with $434 million in the year-ago period. Quarterly income excludes a $105 million charge related to job reductions and consolidation. Revenue in the fourth quarter, ended Feb. 1, slipped 7.1 percent, to $8.1 billion, down from $8.7 billion in the same three months the previous year. Dell said its total shipments in the Americas and the United States grew 10 percent in the fourth quarter, while the U.S. industry declined 9 percent. Dell claims a market share of more than 27 percent in the fourth quarter. Dell said its total unit growth in the United States last year was 11 percent, compared with a national industry drop of 12 percent. Dell's desktop computer share of total revenue in the fourth hit 57 percent, up from 54 percent in the same three months the previous year, while portables share of total revenue slipped to 25 percent, compared with 28 percent in the same quarter a year earlier. The Americas remain the geographic hot spot, holding down 70 percent of Dell's net revenue in the fourth quarter, compared with 70 percent year over year. For the 12 months, revenue decreased 2.3 percent, to $31.2 billion, down from $31.9 billion a year ago. Excluding charges, 12-month net income hit $1.8 billion, 22.9 percent below the $2.3 billion recorded in the previous 12 months.

HP Q1 PC Sales Drop 13%, Segment Narrows Operating Loss

Palo Alto, Calif. - Fiscal first quarter revenue in the Embedded and Personal systems segment at Hewlett-Packard, which includes personal computers, notebook PCs and personal appliances, declined 13 percent, hitting $2.5 billion, down from $2.8 billion in the year-ago period. The segment dramatically narrowed its loss in the fourth quarter, however, recording a loss from operations of $4 million in the three months ended Jan. 31, compared with an operating loss of $66 million in the same three months in 2001. Consumer PC revenue declined 10 percent year over year in the first three months, while notebooks enjoyed a revenue increase of 7 percent in the same period. Overall HP net revenue slid 8 percent in the first quarter, to $11.4 billion, down from $12.4 billion a year ago. Net earnings hit $484 million in the three months, more than tripling the $141 million posted in the same quarter in 2001.

Office Depot Year Over Year Loss Turns To Profit

Delray Beach, Fla. - Although fourth-quarter sales dropped 8 percent at Office Depot, down to $2.8 billion, from $3 billion in the year-ago period, the retailer reported fourth-quarter net income of $40.3 million, up from a loss of $168.3 million in the same quarter in 2000. Comp-store sales dropped 3 percent in the fourth quarter ended Dec. 29. Sales in North American stores slipped 12 percent, to $1.5 billion, down from $1.7 billion in the year-ago period. The North American retail segment operating profit reached $92.6 million, up from $0.1 million in the fourth quarter of the previous year. For the 12 months, North American stores sales dropped 10 percent, to $5.8 billion, down from $6.5 billion a year earlier. Operating profit in the segment was about flat at $316.8 million, compared with $320.8 million in 2000. Gross margin improved 152 basis points in the fourth quarter and 93 basis points for the year. Overall sales for the 12 months decreased to $11.2 billion, down from $11.5 billion in 2000. Net income climbed to $201 million, up from $49.3 million the previous year. The company said North American comps to date are trending better than the fourth quarter, but are still in the low single-digit negative range.

Harman Intl. Q2 Sales Increase 7%, Net Slides

Washington - Buoyed by multimedia, which continues to perform better than that industry as a whole - at a time when consumer audio remains soft - Harman International recorded fiscal second- quarter sales of $467.4 million, a 7 percent increase above the $438.2 million reported in the year-ago period. Net income was $11.7 million, down 51 percent from the $24.2 million recorded in the same quarter in 2000. Excluding a reserve of $8.3 million for a patent lawsuit, the company earned $17.6 million. The company, which manufactures high-end consumer audio products said sales for the six months ended Dec. 31, reached $866.4 million, a 4 percent jump over the $833.2 million recorded in the same six months the previous year. Net income for the six months was $16.8 million, compared with $31.4 million in the same six months in 2000. Wink Q4 Revenue Dips 30%, Loss Increases

Alameda, Calif. - Mass market interactive TV solution company Wink Communications reported lower revenue for the fourth quarter ended Dec. 31, reaching $1.2 million, down about 30 percent from the $1.7 million recorded in the year-ago period. The company, which gives viewers a free and convenient way to interact with programs and advertisements while they continue to watch television, expanded its net loss in the fourth quarter, to $72.9 million, compared with $14.6 million in the same quarter in 2000. Fourth-quarter results included a charge of $55.3 million. At year-end Wink said it accounted for about 6 million households, an increase of 3.5 million households over the previous year. Year-end revenue hit $6.9 million, an increase of 59 percent over the $4.3 million reported year over year. Net loss for the 12 months reached $114.5 million, up from $33.3 million in the same 12 months the previous year. The company estimates it will take in revenue of $750,000 to $1 million for the first quarter ending March 31 and $10 million to $12 million for the year ending Dec. 31. It also expects to add 500,000 net new Wink-enabled households in the upcoming quarter and 5 million for the year.

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Radica Games Q4 Sales Climb 12.3%, Loss Narrows

Hong Kong - Handheld and tabletop games and video game accessories maker Radica Games reported a 12.3 percent increase in sales in the fourth quarter, hitting $39.3 million, up from $35 million in the year-ago period. The company reduced its net loss to $1 million in the fourth quarter ended Dec. 31, down from a $2.4 million net loss in the same period in 2000. Radica incurred a charge of $1.6 million for restructuring costs in the fourth quarter. Gross margin for the three months climbed 110 basis points, to 33.5 percent, compared with 32. 4 percent in the year-ago period. For the 12 months, sales dropped to $98.6 million, down from $106.7 million. Net loss was $4.4 million for the 12 months, down from an $18.1 million loss for 2000. Gross margin for the 12 months was 34.4 percent, compared with 22.2 percent in 2000, mainly attributed to improvements in inventory control allowing for less closeout product and continued products cost reduction. Royal Appliance Q4 Sales Climb 3%

Cleveland - Floor-care products maker Royal Appliance, bolstered by strong consumer response to new Dirt Devil products and the success of its first consumer electronics product, called Telezapper, reported a 3 percent increase in sales for the fourth quarter ended Dec. 31. Sales reached $130.7 million, compared with $126.5 million in the year-ago three months. Net income rose 25 percent in the fourth quarter, hitting $3.8 million, up from $3 million in the comparable 2000 period. For the 12 months, sales climbed 5 percent, to $428.4 million, up from $408.2 million in the same three months in 2000. Net income for the year was $9.3 million, a 57 percent rise over the $5.9 million reported in the previous 12 months. The 2000 results include a $930,000 tax credit. Royal Appliance cautions that heightened competition, falling retail price points, recent retail bankruptcies and shorter product life cycles - which continue to result in downward pressure on its sales mix and gross margin - will continue into 2002.

Universal Electronics Q4 Sales Decline 30%, Income Slides

Cypress, Calif. - Wireless control devices maker Universal Electronics reported a drop in fourth-quarter sales of nearly 30 percent, down to $27.9 million, compared with $38.8 million in the year-ago period. Net income decreased to $3.6 million in the three months ended Dec. 31, down from $4.8 million in the same three months in 2000. The company blamed reduced orders from cable and OEM customers in North America during the fourth quarter. For the year, sales slipped to $119 million, down from $124.7 million in 2000. Net income slipped slightly, to $11.3 million, compared with $11.6 million the previous year. OpenTV Q4 Revenue Down 11%

Mountain View, Calif. - Interactive television provider OpenTV reported revenue of $25.1 million in the fourth quarter ended Dec. 31, down about 11 percent compared with $22.3 million in the year-ago three months. The company's pro forma net loss was $2.5 million for the fourth quarter, about the same as the $2.4 million pro forma net loss recorded in the same quarter in 2000. On a reported basis, the company's net loss for the quarter was $114.7 million, down from the $118.8 million loss in the year-ago three months. Various restructuring initiatives in 2002 are expected to result in a charge of about $9.1 million during the first quarter of 2002. This includes consolidation of operating facilities and the elimination of 57 full-time positions. For the year, OpenTV increased revenue 51 percent, reaching $95.3 million, compared with $63.1 million in 2000. The company's pro forma net loss was $25.3 million for the 12 months, more than double the $11.4 million loss in 2000. Reported net loss for the year was $484.3 million, more than double the $240.8 million loss recorded the previous year. Electric Fuel Q4 Revenue Drops To $1.1 Mil.

New York - Revenue at Electric Fuel was about cut in half during the fourth quarter, coming in at $1.1 million, compared with $2.2 million in the year-ago fourth quarter. Revenue in the third quarter was $1.2 million. The company widened its loss in the three months ended Dec. 31, to $4.9 million, compared with $3.9 million in the fourth quarter of 2000. Net loss in the third quarter was $4.4 million. For the year, Electric Fuel reported revenue of $4 million, flat when compared with $4.1 million in the same 12 months in 2000. The company, which is a developer of zinc-air fuel cell batteries, widened its loss for the 12 months, to $17.3 million, compared with a loss of $12 million the previous year. At the same time, Electric Fuel has started a corporate initiatives strategic plan that focuses on increasing sales. Highlights of the initiative include direct response TV ads and retail promotions. The company also is streamlining operations by cutting general administrative expenses, reducing third-party consultant fees and beginning salary cutbacks for senior executives.Ultralife Batteries Q2 Sales Rise 35%

Newark, N.Y. - Battery sales at OEM supplier Ultralife Batteries climbed about 35 percent to $7.2 million in its fiscal second quarter ended Dec. 31, up from $4.7 million in the year-ago period. Operating loss for the second quarter was $3.3 million, down from $4.7 million in the same three months in 2000. Net loss in the second quarter dropped to $3.4 million, compared with $5.7 million in the second quarter the previous year. For the 12 months, Ultralife battery sales climbed to $14.6 million, up about 24 percent from $11.1 million in the year-ago period. Operating loss for the 12 months was about the same year over year, hitting $7 million in 2001 and $7.5 million in 2000. Net loss was reduced to $7.1 million in the 12 months, down from an $8.8 million loss in the same period the previous year.Singing Machine Q3 Sales Up

Coconut Creek, Fla. - With demand for karaoke products showing no sign of slowing down in the new year, sales of karaoke equipment and related audio software surged 146 percent in the fiscal third quarter at The Singing Machine Co., to $34.2 million, up from $13.9 million in the year-ago period. Third-quarter net income nearly tripled to $6 million, compared with $1.7 million in the third quarter of 2000. For the nine months, Singing Machine reported an 80 percent increase in sales, reaching $55.4 million, up from $30.8 million in the same period in 2000. Net income increased 144 percent to $8.3 million, compared with $3.4 million the previous nine months. Rent-A-Center Q4 Income Up 10.2%

Plano, Texas - Rent-to-own retailer Rent-A-Center reported a 16.3 percent increase in revenue for the fourth quarter ended Dec. 31, reaching $479 million, up from $411.9 million in the year-ago period. Net income rose 10.2 percent in the three months, hitting $26 million, compared with $23.6 million in the same quarter in 2000. Same-store revenue climbed 9.7 percent in the fourth quarter year over year. Excluding a one-time gain in 2000 and one-time charge in 2001, net income for the 12 months reached $97.5 million, up 6.9 percent from the $91.2 million recorded in 2000. Total revenue for the 12 months climbed 12.9 percent, to $1.8 billion, up from $1.6 billion in the year-ago 12 months. Same-store sales in the 12 months increased 8 percent, compared with the 12 months in 2000. The company expects total revenue of $475 million to $483 million in the first quarter of 2002, with a 12-month range of between $1.9 billion and $1.95 billion. Rent-Way Q1 Revenue Flat

Erie, Pa. - Rental-purchase stores Rent-Way saw revenue drop to $154.1 million in its fiscal first quarter ended Dec. 31. This compares with a relatively flat $158.7 million in the year-ago period. Operating income increased by $13.2 million to $2.5 million in the first quarter, up from a loss of $10.7 million in the year-earlier period. The retailer narrowed its net loss to $22.7 million in the first quarter, compared with $25.8 million in the same quarter the previous year. Average revenue per store increased 2.4 percent vs. year-earlier levels. Kodak Reports Loss in Period

Rochester, N.Y. - Noting that it had reduced debt, inventories, receivables and capital spending, hard pressed Eastman Kodak reported sales of $3.4 billion in the fourth quarter, down 6 percent from the $3.6 billion recorded in the fourth quarter of 2000. Kodak reported a loss of $206 million in the three months, up from income of $194 million recorded in the year-ago period. Excluding charges and other non-recurring items, fourth quarter 2001 earnings were $36 million. For the year, sales were off 5 percent, hitting $13.2 billion, compared with $14 billion in 2000. Net earnings for the year were $76 million, compared with $1.4 billion in 2000. Excluding charges, earnings in 2001 were $670 million. Kodak expects the economic weakness will continue to depress earnings in 2002., although this will be offset in part by the benefit of cost improvements implemented in 2001.

Compaq Q4 Revenue Slides 26%

Houston - Compaq Computer's earnings expectations for the fourth quarter trounced Wall Street's predictions, with the company reporting net income of $92 million, compared with a loss of $672 million in the year-ago fourth quarter. However, revenue slid 26 percent in the fourth quarter, to $8.5 billion, down from $11.5 billion in the same three months in 2000. Revenue in Compaq's Access personal computer segment dropped 31 percent, to $3.8 billion, compared with $5.5 billion in the year-ago three months. The segment posted an operating loss of $69 million in the fourth quarter, down from a gain of $16 million in the same period in 2000. For the year, PC-segment revenue dropped to $15.2 billion, down from $20.6 billion in 2000. Operating results over the year for the segment dropped from a $145 million gain in 2000, to a loss of $587 million this past year. Compaq expects overall first-quarter revenue of about $7.6 billion. O'Sullivan Q2 Sales Decline 9%

Lamar, Mo. - Sales dropped 9 percent at O'Sullivan Industries Holdings in its fiscal second quarter - down to $87.9 million, compared with $96.6 million in the year-ago period - while the company recorded net income of $1.1 million, compared with a net loss of $7.5 million in the same quarter in 2000. The year-ago loss included a $10.5 million pre-tax restructuring charge. Even with declining sales, O'Sullivan increased its adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) to $12.3 million in the second quarter ended Dec. 31, compared with $12 million in the year-ago three months. Adjusted EBITDA as a percent of sales in the second quarter was 14 percent, compared with 12.4 percent in the same three months in 2000. Gross margin in the quarter climbed 100 basis points, to 28.7 percent. Sales for the six months were $174.2 million, down 6.9 percent from the $187. 1 million reported in the comparable period in 2000. Net loss for the six months was $0.3 million, down from a net loss of $9.9 million in the same six months in 2000. Gross margin for the six months rose 130 basis points, to 28.6 percent.

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