Emerson Radio ended its fiscal first half on an upbeat financial note showing strong increases in its second-quarter sales and earnings.
For the three months to October 1, Emerson posted a net of $855,000, up 46.7% from last year as revenue increased 18.8% to $55.5 million. For the half the electronics equipment marketer's net was off 5.7% to $1.27 million and sales, at just under $99 million, fell 6.5%.
Emerson said the quarterly improvement reflected strong demand for microwave ovens, DVD players, and the company's new line of office supplies. Additionally, it said, the quarter benefited by a decision by some dealers to delay, for inventory adjustment, purchases from the first quarter to the second.
CEO Geoffrey Jurick said the company's new product development effort has "been rewarded through increased revenues."
He also said the company is continuing to broaden its brand reach through licensing. During the quarter, Jurick said, "we successfully completed an agreement to license the Emerson name for use on car audio and car accessories in the U.S, Canada and Mexico."
Jurick said he also signed agreements for the sale of Emerson-brand products in Spain and H.H. Scott hi-fi equipment in France.
Separately, in Korea, Daewoo, which has the exclusive right to produce color TVs and VCRs for sale in the U.S. under the Emerson brand, said it has signed an agreement to deliver at least $400 million of Emerson video products under a new three-year licensing agreement. The contract calls for it to ship some 2 million TVs and 3 million VCRs during the period.
Daewoo has the right to sell direct to such major retail accounts as Wal-Mart and Target (which respectively accounted for 52% and 24% of Emerson's fiscal-1999 revenue) and will ship video orders booked by Emerson's in-house and rep sales organizations.