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Press Release Source: Hauppauge Digital, Inc.
Hauppauge Digital Reports Fiscal 2004 First Quarter Financial Results
Wednesday February 11, 10:29 am ET
Reports 17% Sales Increase and 51% Profit Increase to $.11 Per Share, Compared with $.07 Per Share for the Previous Years' Fiscal Quarter
HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Feb. 11, 2004-- Hauppauge Digital, Inc. (NASDAQ:HAUP - News), a leading developer of digital video TV and data broadcast receiver products for personal computers, today reported financial results for the fiscal first quarter ended December 31, 2003.
FIRST QUARTER RESULTS
Sales were $18.2 million for the first quarter compared to $15.5 million for the previous year's first quarter, an increase of approximately 17%. Increases in OEM sales of WinTV-PVR products for use with Microsoft's Media Center Edition, retail WinTV-PVR personal video recorder product sales, European digital products and new product introductions were primarily responsible for the increase in sales.
Gross profit percentage was 25.13% for the first quarter, compared with a gross profit percentage of 25.26% for the previous year's first quarter. Higher OEM sales, which require minimal sales and advertising support, but yield a lower margin, offset the increase in gross profit due to cost reductions and a favorable sales mix of higher gross margin products.
Selling, General and Administrative costs increased by $414,314. The strengthening of the value of the Euro to the U.S. dollar was responsible for $211,157 of the increase, while promotional and marketing programs and increased legal and consulting costs contributed to the remaining increase in SGA expenses. Spending for research and development decreased $82,799, mainly due to lower contracted third party software development costs.
Net income for the quarter was $992,860 or $0.11 per share on a basic and diluted basis, compared to net income of $656,472 or $0.07 per share on a basic and diluted basis for the prior year's first quarter.
DISCUSSION OF RESULTS
Ken Plotkin, Hauppauge's Chief Executive Officer, stated, "After a slow second half of fiscal 2003, sales rebounded in our first quarter of fiscal 2004. Our first fiscal quarter is typically our strongest quarter. In the quarter we saw strong retail sales of our WinTV-PVR personal video recorder products, new sales of Personal Video Recorder product sold on an OEM basis to personal computer makers for use in their Windows XP Media Center Edition systems, and the initial shipments of our MediaMVP digital media decoder product line. Our sales and net income increased approximately 17% and 51%, respectively, over last year's first fiscal quarter. We continue to emphasize our product development programs with the ultimate goal of continuing the first quarter's upward trend through the remainder of the fiscal year". |
