Office Depot
Delray Beach, Fla. – Coming off tough weeks following the events of Sept. 11, sales in the North American Retail Division at Office Depot declined 7 percent in the three months ending Sept. 29, dropping to $1.47 billion, compared with $1.59 billion in the same period last year. Comp-store sales also declined 7 percent during the third quarter. Store operating profit for the division hit $88.1 million, including costs of $26 million, compared with $85.8 million in the year-ago period. Gross margins improved by 364 basis points in the quarter, mainly due to the continued mix shift away from technology, successful re-merchandising initiatives and better margins on back-to-school products. For the nine months, sales in the North American retail segment dropped to $4.36 billion, compared with $4.80 billion in the same period in 2000. Operating profit dipped to $247.6 million, compared with $345.6 million in the same nine months last year.
CellStar
Carrollton, Texas – Handset provider to the wireless communications industry CellStar said revenue in North America during its fiscal third quarter ended Aug. 31 was flat, at $155.6 million, about the same amount reported in the year-ago three months. North America accounted for 26 percent of total company revenue in the quarter. For the nine months, North American revenue jumped to $407.2 million, a 22 percent share of total company revenue, compared with $336.1 million in the same period in 2000, which accounted for a 19 percent share of total company revenue. Revenue in the third quarter from sales of handsets was $555.6 million, compared with $550.6 million in the third quarter last year. Average selling price for a handset in the third quarter was $147.39, compared with $180.19 in the preceding quarter. Average selling price for a digital handset was $149.42, compared with $183.26 in the second quarter. Average selling price for an analog handset was $85.20, compared with $69.45 in the preceding quarter. Revenue for CellStar overall in the third quarter was $610.5 million, down from $629.8 in the same quarter in 2000. The company about halved its net loss for the three months, recording a $5.8 million loss, compared with a $13.9 million loss in the year-ago three months. Revenue for the nine months reached $1.83 billion, compared with $1.78 billion in the prior year. The company had net income of $1.9 million for the nine months, compared with a $46.9 million loss the previous year.
Logitech
Fremont, Calif. – Swiss peripherals producer Logitech International enjoyed a 20 percent increase in revenue during its fiscal second quarter ended Sept. 30. Sales reached $227.8 million in the three months, compared with $190.6 million in the year-ago period. Net income hit $13.9 million, up 49 percent, compared with $9.4 million in the same quarter in 2000. Operating income jumped 56 percent to $18.7 million, up from $12 million in the second quarter of last year. Logitech, which said it had an increase of 66 percent in retail sales of cordless products in the second quarter, compared to the prior-year period, also said it registered 50 percent growth in shipments of retail video cameras over the previous year’s second quarter. Logitech expects full-year sales to grow by about 25 percent over fiscal 2001. For the third quarter, it expects sales to climb by 20 percent to 25 percent. For the six months, total revenue jumped 22 percent to $405.7 million, up from $332 million in the year-ago period. Net income increased 41 percent to $20.3 million, compared with $14.4 million the pervious year. Operating income was up 68 percent for the six months, reaching $26.9 million, compared with $16 million in the same six months in 2000.
Imation
Oakdale, Minn. – Removable data storage media supplier Imation reported revenue of $279.3 million for the third quarter, down about 12 percent from the $290.7 million recorded in the same three months last year. Imation reported net income of $10.1 million for the three months ended Sept. 30, down from a loss of $33.6 million, including special charges of $61.1 million pre-tax. Gross margin percentage rose 400 basis points to 30.4 percent in the third quarter, while U.S. revenue dropped from $166.3 million to $154.9 million in the same three months. U.S. revenue now accounts for 55 percent of total company revenue, down from a 57 percent share in the third quarter of 2000. The company anticipates full-year revenue to be down about 5 percent to 7 percent, compared with 2000 revenue of $1.23 billion. Operating income for the full year, excluding special charges, is targeted to grow 5 percent to 10 percent over 2000, hitting in the range of $48 million to $51 million. For the nine months, revenue dropped from $926.4 million in 2000 to $862.6 million this year. Net income for the nine months was $24.9 million, compared to a loss of $3.4 million in the year-ago period.
Lexmark
Lexington, Ky. – Led by an 11 percent revenue increase for printers and associated supplies in the third quarter ended Sept. 30, Lexmark reported an overall 8 percent increase in revenue, reaching $1 billion in the third quarter, compared with $926.6 million in the same three months last year. Gross profit margin, however, dropped 100 basis points to 30.9 percent in the three months, due to lower margins on printer hardware. Net earnings were $70 million in the third quarter, up about 6 percent from the $66.1 million reported in the year-ago period. For the fourth quarter, Lexmark expects revenue to be about flat on a year-to-year basis. The company sees the market continuing to weaken, and expects gross margin to decline in the fourth quarter. For the nine months, revenue jumped 10 percent to $2.99 billion, up from $2.71 billion in the fourth quarter of 2000. Nine-month revenue from printers and associated supplies increased 13 percent. Net earnings for the period were $236.8 million, up 3 percent from the $230.4 million recorded in the first nine months of 2000.
Lexar Media Q3 Revenue Declines 42%, Pro Forma Loss Reduced
Fremont, Calif. – Flash-based digital storage media designer and marketer, Lexar Media, reported revenue for the third quarter ended Sept. 30 was $18.1 million, down about 42 percent from the $31 million recorded in the year-ago third quarter. Excluding stock-based compensation and imputed interest charges, Lexar Media’s pro forma loss for the third quarter was $3.2 million, down from a pro forma loss of $5.9 million in the third quarter of 2000. The company reiterated its fourth-quarter goal of reaching profitability on an operating basis excluding charges. For the nine months, revenue dropped to $51.7 million, down from $71.8 million. The pro forma loss more than doubled to $34.6 million, compared with $16.8 million in the same three months last year.
Compaq
Houston – Rocked by what it called one of the most challenging quarters ever, Compaq Computer reported revenue of $3.26 billion in its Access consumer products division for the third quarter, down 42 percent from the $5.60 billion recorded in the year-ago three months. The drop followed an aggressive program to reduce inventory by more than $400 million during the third quarter ended Sept. 30, as well as to increase inventory turns and drive new, higher margin categories through innovation and design. The division recorded an operating loss of $248 million for the third quarter, compared with operating income of $142 million in the year-ago three months. For the nine months, Compaq’s Access division saw revenue drop from $15.21 billion in last year’s third quarter to $11.45 billion in the current three months. The division reported a nine-month operating loss of $485 million in the third quarter, compared with operating income of $201 million year over year. Total Compaq revenue in the third quarter took a 33 percent hit, dropping to $7.48 billion from $11.22 billion in the same quarter in 2000.
Gateway
San Diego – Computer maker Gateway, hard hit by a drop in demand following the events of Sept. 11, registered a 44 percent decrease in sales in the third quarter ended Sept. 30, reaching $1.41 billion, compared with $2.55 billion in the year-ago period. The company posted a net loss of $520 million, including special charges, compared with a gain of $131.8 million in the same quarter last year. Unit sales in the United States increased to 818,000, compared with 798,000 in the prior quarter. Sales of non-PC products and services were 17 percent of revenue and 43 percent of gross margin in the third quarter. Gateway’s average selling price was $1,460 for the quarter, compared with $1,501 in the second quarter. For the nine months, total sales were $4.94 billion, down from $7.15 billion in the year-ago three months. Net loss for the nine months was $1.04 billion, compared with a gain of $369.7 million in the same quarter in 2000.
Apple
Cupertino, Calif. – Hard hit by a 53 percent dive in iMac revenue and a 36 percent drop in PowerBook sales in its fiscal fourth quarter ended Sept. 29, Apple reported a 22 percent drop in total revenue, reaching $1.45 billion, compared with $1.87 billion in the year-ago period. Apple posted a net profit of $66 million in the fourth quarter, compared with $170 million year-over-year. Sales in the Americas dropped about 20 percent, to $873 million, down from $1,099 million in the same quarter in 2000. For the year, Apple posted a net loss of $25 million, on revenue of $5.36 billion, compared with net earnings of $786 million, on $7.98 billion in revenue, in 2000.
Plantronics
Santa Cruz, Calif. – Communications headsets manufacturer Plantronics registered fiscal second-quarter revenue of $77.5 million, down about 25 percent from the $103.9 million reported in the year-ago period. Net income dropped to $6.8 million in the second quarter ended Sept.30, down from $20.7 million in the same period last year. The company said revenue in its mobile and computer divisions picked up from first-quarter levels, while North America picked up from quarter one. The company said revenue for the fiscal third quarter should be in the range of $77 million to $82 million. For the six months, revenue decreased about 22 percent to $157.6 million, down from $204.3 million in the same quarter in 2000. Net income dropped to $14.9 million, compared with $40.8 million in the year-ago six months.
SanDisk
Sunnyvale, Calif. – With continuing excess supply exacerbating pricing pressures, SanDisk, maker of flash memory data storage products, registered a $170.5 million loss in the third quarter ended Sept. 30, compared with income of $25.6 million in the third quarter of 2000. Excluding write-downs of investments, inventory write-downs and restructuring charges, SanDisk had a third-quarter net loss from operations of $33 million. Due to severe pricing pressures and further deterioration in retail market conditions following the events of Sept. 11, SanDisk recorded product revenue in the three months of $57.3 million, down about 59 percent from the $151.8 million reported in the same quarter last year. The company said it is too early to say if retail sales in the fourth quarter will meet previous expectations for the holiday season. For the nine months, SanDisk reported a net loss of $323.6 million, compared with income of $269.1 million in the year-ago period. Product revenue in the nine months was $233.5 million, down about 37 percent from the $371.6 million recorded in the same quarter in 2000.
Royal Appliance
Cleveland – Dirt Devil floor care products maker Royal Appliance said sales in the third quarter rose 17 percent to $112.7 million, up from $96.1 million in the same three months last year. Net income for the third quarter ended Sept. 30 rose about 20 percent to $4.1 million, compared with $3.3 million in the year-ago period. Royal Appliance attributed a 6 percent increase in sales for the nine months to introduction of its Platinum Force line of products. Sales for the period reached $297.7 million, up from $281.7 million in the same nine months in 2000. Net income for the nine months nearly doubled to $5.6 million, compared with $2.9 million in the year-ago period. The company also began shipping its first-ever consumer electronics product, called the Telezapper, a device which is said to virtually eliminate computer-generated telemarketing calls. The product is marketed through the company’s new wholly-owned Privacy Technologies subsidiary.
LoJack
Westwood, Mass. – Revenue was somewhat flat at LoJack in its fiscal second quarter ended Aug. 31, dropping to $25.4 million, compared with $25.9 million in the year-ago period. Net income decreased to $2 million, down about 30 percent from the $2.9 million reported in the same three months in 2000. The decrease in domestic revenue in the second quarter reflects a decline in unit sales from the same period last year, due to the softening economy and the downturn in new car sales. For the six months, revenue was $49.95 million, down slightly from the $50.35 million recorded in the year-ago second quarter. Net income was $4.2 million in the first half, about a 70 percent jump from the $2.5 million recorded in the first six months of 2000. During the first half of fiscal 2002, LoJack repurchased 275,000 shares under its stock buyback program. As of Oct. 1, 7.3 million shares have been repurchased since the inception of the program.
