Tempe, Ariz. - Rockford increased its sales, net profit and gross margins in its fiscal second quarter and first half.
Net sales rose 14.2 percent in the quarter ending June 30 to $17 million and rose 18.9 percent in the first half to $33.6 million. Net income rose in the quarter to $1.8 million from a year-ago $1.1 million and in the first half to $3.1 million compared with a year-ago $1.8 million. Gross margin as a percent of net sales rose to 38.3 percent in the quarter from a year-ago 36.7 percent. Gross margins in the first half rose to 39 percent from a year-ago 37 percent.
Sales growth in both periods came in all of the car electronics company's sales channels: aftermarket, international and OEM.
Gross margins grew in both periods primarily because of lower returns and discounts as a percentage of sales, higher overall sales, and increased OEM royalty revenue, the company said.
The company noted that it announced a "slight" price rise at the end of the quarter because of currency fluctuations and rising commodity prices.
The company also said its OEM business is rebounding because of an improving new-car market and that Japan-based automakers are returning to normal production schedules. OEM royalty revenues for the half hit $1.4 million, up from a year-ago $1.1 million.
In other comments in the company's earnings report, president/CEO William Jackson said the company's Renegade and Lightning Audio brands "continue to do well and have grown each quarter." He also said the new Brax and Helix brands "are beginning to have an impact in the market." The Helix plug-and-play products, designed to upgrade factory systems "with minimal installation time and disruption to the vehicle," are "beginning to open new opportunities for us in the marketplace," he said.