Beaverton, Ore. - Planar Systems reported financial results for its fiscal third quarter, ended June 25, including a sales increase of 13 percent sequentially and 1 percent when compared with the prior-year period.
The company said it recorded sales of $44.7 million and GAAP net income per share of $0.01 in the third fiscal quarter. On a Non-GAAP basis, net income per share was $0.03.
Planar attributed the sales increase to higher demand for its custom digital signage and embedded displays, LCD video wall systems and desktop monitors, and said it was partially offset by lower sales of high-end home and rear projection cube products.
Planar "experienced strong end-market demand, particularly from retailers, for custom digital signage products used in both in-store retail networks and outdoor kiosk applications. Conversely, poor economic conditions continued to negatively impact sales of high-end home products and demand for rear-projection cubes has remained soft, with sales cycles for rear-projection cubes further impacted by a continuing industry-wide transition from traditional lamp-based solutions to LED illumination," it said.
Consolidated gross margins (on a Non-GAAP basis) were 27.8 percent in the third quarter of 2010, up over 4 percentage points sequentially but down from 28.8 percent compared with the third quarter of 2009.
The decrease in gross margin, as a percent of sales, from the previous year was primarily due to a less favorable product mix resulting from lower sales of higher margin command and control room rear-projection cubes, Planar said.