Profitability Dropped For Sun TV In Fiscal 2nd Quarter And 1st Half - Twice

Profitability Dropped For Sun TV In Fiscal 2nd Quarter And 1st Half

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Sun Television And Appliances had sharply lower earnings for its fiscal second quarter and half, and cited lower margins and increased competition as among the major reasons.

For the three months to August 26 the 44-store Columbus, Ohio chain had a net of $2.26 million, down 48.4% from the same period last year, while sales, at $183.2 million, rose 13.7%. Six-month net fell 64.1% to $1.68 million, and sales of $347.7 million were up 18.2%.

Results for both periods include a post-tax gain of $532,000 from a property sale. Excluding that, net would have been off 61% in the quarter and 72% for the half.

Sun said that comparable-store sales were up 2.5% for the quarter and 6.9% for the six months.

Chairman Robert Oyster expressed satisfaction with the total and comparable sales results, "given the competitive environment that we are operating in today." But, he noted, increased sales of PCs and other low-margin products trimmed a full point, to 25% of sales, from the chain's gross margin for the quarter.

"Although we expect we will continue to operate in a highly competitive environment, we are optimistic as we enter the fall and holiday selling season," Oyster said.

During the quarter, Sun opened in Ohio a replacement store in Columbus, added outlets in Cincinnati and St. Clairsville, and will soon be opening additional outlets in Springfield and Lancaster.

BUSINESS NOTES

Home Theater Products International has called a voluntary halt to trading in its shares while it investigates the reliability of its financial statement after allegations of unreliability were made by its former auditor. In an interview with Dow Jones, the auditor claims HTPI's fiscal 1995 sales are overstated by about 25%, and that instead of a stated $4.1 million profit the company actually lost several million dollars.

◊ Campo Electronics, Appliances & Computers converted $22 million in unsecured borrowing into long-term notes and obtained a new $10 million revolving credit. That credit, along with its $125 million inventory financing credit, "should adequately provide for the company's working capital needs for the foreseeable future," Campo said.

Recoton moved its corporate headquarters to 145 East 57th St., New York, N.Y. 10022. Phone (212) 644-0220, fax 8205.

Heilig-Meyers had a second-quarter net of $11.3 million, down 24% from the same period last year, while sales, in the period ended August 31, rose 21% to $324.9 million. Net for the half was off 10% to $29.8 million, as sales increased 20% to $643.8 million. During the half the broad-line retailer opened 42 stores and announced plans for an Athens, Texas distribution center to support expansion in Texas, Louisiana and Oklahoma. It ended the half with 689 stores.

LG Electronics extended 30 days, to October 19, its $186 million tender offer to acquire 18.6 million Zenith shares from public holders. It said 13.5 million shares had been tendered.

Caldor, the 166-store Northeast discounter, filed for Chapter 11 protection from creditors. But, the chain insists, it isn't in any financial difficulty. It made the filing because some vendors and factors were withholding credit and jeopardizing its ability to stock up for Christmas. Caldor said it has obtained $250 million in debtor-in-possession financing and will be able to fill its inventory requirements. Among its largest trade creditors (in millions): Thomson $5.1, Sharp $2.8, AT&T $2.6 and Magnavox $1.6.

Seagate Technology has agreed to acquire rival hard disk drive maker Conners Peripherals in a $1.04 billion stock swap.

Intuit received a $41.3 million merger termination fee from Microsoft that helped it cut its loss for the its fiscal year ended July 31 to $45.4 million from the $173.2 million deficit of fiscal 1994. Revenue of $395.7 million was up 77.1%. Revenue included a full year of ChipSoft sales and a nine-month sales contribution from Parsons Technology. Excluding its high merger costs of both years and the Microsoft contribution, Intuit would have had a 5% earnings rise to $26.8 million. Adjusted to include sales of both subsidiaries for both years, fiscal 1995 revenue would have been up 38% to $403.1 million.

Broderbund terminated its software distribution agreements with New Media Express and Electronic Arts and will build up its internal sales organization.

COMPANY CLOSING CLOSING NET PERCENT

PRICE PRICE CHG. IN CHG. IN ANNUAL

MANUFACTURER 9/11/1995 9/25/1995 PERIOD PERIOD HIGH LOW

APPLE 44.25 37.50 -6.75 -15.25 50.13 32.50

AST RESEARCH (L) 12.75 10.00 -2.75 -21.57 19.13 9.88

ATARI 2.81 3.56 0.75 26.67 7.75 2.50

AUDIOVOX 5.75 5.88 0.13 2.17 9.00 4.44

BOSTON ACOUSTICS (H) 19.75 20.50 0.75 3.80 21.00 14.75

BUSH INDUSTRIES 14.13 13.75 -0.38 -2.65 22.88 10.13

CAMBRIDGE SOUNDWORKS 6.00 7.00 1.00 16.67 9.88 3.38

CARVER 1.75 1.94 0.19 10.71 3.50 1.00

CERTRON 0.69 0.69 0.00 0.00 1.13 0.63

CIDCO 39.25 34.63 -4.63 -11.78 39.75 22.50

COBRA ELECTRONICS 2.13 2.13 0.00 0.00 3.00 1.50

CODE-ALARM 7.00 6.50 -0.50 -7.14 11.63 6.38

COMPAQ 51.13 45.75 -5.38 -10.51 54.75 30.75

CURTIS MATHES HOLDING 0.81 0.94 0.13 15.38 2.81 0.53

DELL COMPUTER (H) 85.38 87.00 1.63 1.90 93.88 35.38

DURACELL 44.00 45.88 1.88 4.26 47.38 36.75

ECHOSTAR COMM. 16.50 16.25 -0.25 -1.52 18.00 14.25

ELECTROLUX 44.50 48.38 3.88 8.71 54.13 43.38

EMERSON RADIO 3.25 3.06 -0.19 -5.77 3.75 2.00

FEDDERS 6.50 6.63 0.13 1.92 7.88 4.88

FRANKLIN ELECT PUB. (H) 30.50 35.88 5.38 17.62 36.00 14.38

FUJI PHOTO 51.25 48.50 -2.75 -5.37 53.38 39.50

HTP INTERNATIONAL (L) 3.81 2.06 -1.75 -45.90 7.03 1.44

GENERAL ELECTRIC (H) 58.88 64.38 5.50 9.34 64.63 45.38

GENERAL INSTRUMENT 34.50 31.75 -2.75 -7.97 41.63 25.63

GO VIDEO 1.69 1.75 0.06 3.70 2.75 1.50

HARMAN INTERNATIONAL (H) 47.00 48.50 1.50 3.19 49.75 32.00

HEWLETT PACKARD (H) 85.38 83.63 -1.75 -2.05 85.88 41.75

HITACHI 113.13 105.25 -7.88 -6.96 114.13 82.88

INTERNATIONAL JENSEN 7.75 7.75 0.00 0.00 12.00 6.75

KOSS 7.25 6.25 -1.00 -13.79 13.75 5.13

KYOCERA 175.50 164.00 -11.50 -6.55 184.00 123.00

MATSUSHITA 154.75 150.00 -4.75 -3.07 172.50 131.50

MAYTAG 16.63 17.25 0.63 3.76 17.75 14.00

3M 54.75 54.63 -0.13 -0.23 62.13 50.63

MOTOROLA (H) 79.25 77.75 -1.50 -1.89 82.50 49.00

MTC ELECTRONICS 1.06 1.06 0.00 0.00 3.94 0.75

NEC (H) 75.00 67.75 -7.25 -9.67 75.13 45.13

O'SULLIVAN INDUSTRIES 8.13 7.63 -0.50 -6.15 13.13 7.25

PHILIPS 47.25 48.38 1.13 2.38 53.38 28.63

PIONEER ELECTRONIC 19.25 18.88 -0.38 -1.95 27.38 17.13

POLK AUDIO 11.25 11.00 -0.25 -2.22 13.50 8.25

RAYTHEON (H) 81.88 83.63 1.75 2.14 85.13 60.75

RECOTON (H) 25.25 27.50 2.25 8.91 28.75 13.50

SANYO 27.13 27.25 0.13 0.46 30.25 23.38

SMITH CORONA (L) 0.63 0.50 -0.13 -20.00 4.63 0.44

SONY 53.13 51.75 -1.38 -2.59 60.88 42.50

TDK 50.75 48.50 -2.25 -4.43 52.25 39.00

UNIVERSAL ELECTRONICS 8.00 7.88 -0.13 -1.56 8.25 3.75

UNIVERSAL SECURITY INSTR. 1.31 1.44 0.13 9.52 2.00 0.81

WELLS-GARDNER 4.63 4.63 0.00 0.00 6.50 2.13

WHIRLPOOL (H) 59.88 58.13 -1.75 -2.92 60.88 44.63

ZENITH 8.75 8.63 -0.13 -1.43 14.13 6.88

RETAILER / DISTRIBUTOR

AUDIO KING 3.63 3.50 -0.13 -3.45 5.00 2.75

BEST BUY 29.50 27.00 -2.50 -8.47 45.25 19.88

CALDOR (L) 5.25 5.00 -0.25 -4.76 32.00 3.25

CAMPO ELECTRONICS 6.25 6.25 0.00 0.00 13.75 5.38

CELLSTAR 35.50 35.88 0.38 1.06 36.25 14.63

CIRCUIT CITY 34.63 33.38 -1.25 -3.61 37.13 21.00

DAMARK INTERNATIONAL 6.63 7.19 0.56 8.49 12.75 5.63

DAYTON HUDSON 77.50 78.38 0.88 1.13 85.25 63.25

EGGHEAD 12.00 10.13 -1.88 -15.63 14.25 6.75

FRETTER (L) 1.06 0.50 -0.56 -52.94 4.13 0.38

GOOD GUYS 13.13 12.00 -1.13 -8.57 13.88 9.25

GRUPO ELEKTRA 10.50 11.00 0.50 4.76 21.25 3.75

INTELLIGENT ELECTRONICS 9.88 8.88 -1.00 -10.13 17.50 7.50

KMART 14.38 14.75 0.38 2.61 18.00 11.88

MERISEL 7.25 6.00 -1.25 -17.24 10.88 3.88

NEOSTAR RETAIL GROUP 17.63 17.63 0.00 0.00 18.50 8.50

OFFICE DEPOT 31.75 29.13 -2.63 -8.27 32.13 20.88

PEP BOYS 28.00 28.25 0.25 0.89 36.88 24.38

PRICE/COSTCO 18.00 16.88 -1.13 -6.25 18.75 12.00

REX STORES 17.75 17.88 0.13 0.70 20.63 12.25

ROBERDS 13.00 12.25 -0.75 -5.77 13.00 7.25

SEARS 34.75 36.25 1.50 4.32 61.25 30.38

SERVICE MERCHANDISE 7.63 7.13 -0.50 -6.56 7.88 4.13

SHARPER IMAGE 6.75 6.75 0.00 0.00 8.13 5.50

SOUND ADVICE 2.50 2.50 0.00 0.00 6.75 2.38

SPEC'S MUSIC 3.13 3.25 0.13 4.00 6.50 3.00

STAPLES (H) 28.06 27.38 -0.69 -2.45 29.13 13.63

STARSIGHT TELECAST 4.50 3.25 -1.25 -27.78 14.75 3.25

SUN TV 6.31 6.50 0.19 2.97 11.75 6.00

TANDY (H) 63.75 61.50 -2.25 -3.53 64.38 41.00

TOPS APPLIANCE 4.88 4.25 -0.63 -12.82 10.75 3.88

ULTIMATE ELECTRONICS 12.75 12.75 0.00 0.00 16.50 7.25

WAL-MART 25.13 24.75 -0.38 -1.49 27.63 20.63

WARRANTECH 5.75 5.88 0.13 2.17 6.25 4.13

SOFTWARE

ACCLAIM ENTERTAINMENT (H) 26.75 27.00 0.25 0.93 28.63 13.25

ACTIVISION (H) 18.00 18.13 0.13 0.69 20.13 3.38

BORLAND INTERNATIONAL (H) 16.25 15.38 -0.88 -5.38 17.25 6.00

BRODERBUND SOFTWARE (H) 72.63 72.00 -0.63 -0.86 78.75 24.38

DISNEY 55.25 58.13 2.88 5.20 62.88 37.75

ELECTRONIC ARTS (H) 39.75 38.63 -1.13 -2.83 42.25 15.38

GAMETEK 2.44 2.38 -0.06 -2.56 4.50 1.56

IMAGE ENTERTAINMENT 6.69 6.56 -0.13 -1.87 8.13 6.06

INTUIT (H) 43.75 50.75 7.00 16.00 51.50 19.38

MICROSOFT 97.63 90.19 -7.44 -7.62 109.25 53.88

SOFTKEY INTERNATIONAL (H) 48.75 49.00 0.25 0.51 51.75 13.00

SPECTRUM HOLOBYTE 17.00 12.94 -4.06 -23.90 21.38 10.13

SYMANTEC (H) 33.00 29.88 -3.13 -9.47 33.25 14.63

3DO COMPANY 12.13 11.88 -0.25 -2.06 25.00 8.75

TIME WARNER 40.13 39.88 -0.25 -0.62 45.63 31.50

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