Hauppauge Digital Reports Fiscal 2005 First Quarter Financial Results
Friday February 11, 11:12 am ET
Quarterly sales increase 28%, net income increases 27%
Net income of $0.13 per share versus $0.11 per share in prior year
HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Feb. 11, 2005-- 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, 2004.
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FIRST QUARTER RESULTS
Net sales were $23.4 million for the first quarter compared to $18.2 million for the previous year's first quarter, an increase of approximately 28%. Increases in sales of our retail personal video recorder products, personal video recorder products for Windows XP Media Center sold to the OEM market and European digital TV receiver products coupled with the increase in the Euro exchange rate were the primary reasons for the sales increase.
Net income for the first fiscal quarter increased to $1,263,689 compared to net income of $992,860 for the first quarter ended December 31, 2003, an increase of 27%. Basic net income per share was $0.14 and diluted net income per share was $0.13, compared to income per share of $0.11 on a basic and diluted basis for the prior year's first quarter.
Gross profit percentage was 22.74% for the first quarter, compared with a gross profit percentage of 25.13% for the previous year's first quarter. The growth of OEM product sales, which yield a lower gross profit than our retail products but do not require the sales, promotion and customer support required of our retail sales, was the primary driver for the gross profit decrease.
Selling, General and Administrative costs increased by $306,439 in the quarter over the year ago period. Selling costs increased due to increased compensation and commission costs related to sales volume, in addition to the strengthening of the value of the Euro to the U.S. dollar, which increased sales expenses in our European operation. There was a decrease in General and Administrative costs due to lower legal fees due to the completion during fiscal 2004 of certain arbitration and litigation suits and lower compensation costs mainly due to the resignation of the Company's former President, offset by increased Directors' compensation and higher consulting fees related to the start of Sarbanes-Oxley Section 404 compliance work and the costs of updating our transfer price study. Spending for research and development increased $147,256, mainly due to the addition of research and development personnel and the opening during fiscal 2004 of a research and development facility in Taiwan. |
