Hauppauge Digital Reports Strong Fiscal Third Quarter Results; Sales Increase 48% and 62%; Net Income up 114% and 124% Over Prior Year's Quarter and Nine Month Period
HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Aug. 5, 1999--Hauppauge
Digital, Inc. (NASDAQ: HAUP), the leading developer and manufacturer
of analog and digital video, TV and data broadcast receiver products
for personal computers, today reported financial results for its
fiscal third quarter ended June 30, 1999.
Net sales for the quarter ended June 30, 1999 increased 48% to
$13.354 million from $9.043 million for the comparable quarter ended
June 30, 1998. Net income for the quarter increased 114% to $665,589
or $0.15 and $0.14 per share on a basic and diluted basis,
respectively, compared to $311,161 or $0.07 per share on a basic and
diluted basis. Net sales for the nine months ended June 30, 1999
increased 62% to $42.923 million from $26.444 million for the prior
year period ended June 30, 1998. Net income for the nine months ended
June 30, 1999 increased 124% to $2,483,792 or $0.58 and $0.53 per
share on a basic and diluted basis, respectively, compared to
$1,110,866 or $0.25 and $0.24 per share on a basic and diluted basis,
respectively.
Ken Plotkin, Hauppauge's Chief Executive Officer, stated, "We're
very pleased with Hauppauge's strong sales growth and solid overall
third quarter results. During the period, we continued to diversify
our product line through the launch of the WinTV Theatre board and the
first consumer product using Wave Systems' e-commerce
micro-transaction system." Plotkin added, "Looking ahead, Hauppauge
continues to seek strategic relationships across an array of business
sectors, including TV broadcasters and innovative Internet related
companies, and we plan to continue to diversify Hauppauge's product
offerings and applications."
Ken Aupperle, Hauppauge's President, added, "We are excited to
introduce our digital broadcast receiver board, WinTV-D, toward the
end of this summer. The WinTV-D board will retail at about $300, a
fraction of the cost of dedicated digital receivers for the TV market.
Given Hauppauge's first-to-market position and established retail
presence, we believe we are uniquely positioned to benefit from the
FCC mandated transition to digital broadcasts, particularly as
consumer demand grows for more content and higher speed digital
broadcast receiver capabilities for PCs."
Hauppauge Digital, Inc. is the leading developer and manufacturer
of analog and digital video, TV and data broadcast receiver products
for personal computers. Through its Hauppauge Computer Works, Inc.
subsidiary, the Company designs and manufactures analog and digital
video boards for TV-in-a-window, digital video editing and video
conferencing. The Company is headquartered in Hauppauge, New York,
with sales offices in Germany, London, Paris, The Netherlands, Sweden,
Italy, and California. The Company's Internet web site can be found at
hauppauge.com.
The forward looking statements included in this news release are
based on management's current expectations. In light of the
assumptions and uncertainties inherent in forward looking information,
the inclusion of such information should not be regarded as a
representation by the Company or any other person that the plans of
the Company will be realized or that positive trends in financial
results will occur.
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HAUPPAUGE DIGITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months ended
June 30,
1999 1998
Net Sales $13,353,693 $ 9,042,704
Cost of Sales 9,598,877 6,628,542
Gross Margins 3,754,816 2,414,162
Selling, General and
Administrative expenses 2,432,138 1,800,393
Research & Development Expenses 353,429 228,389
Income from operations 969,249 385,380
Other income, (expense) 44,340 79,781
Net income before taxes 1,013,589 465,161
Tax provision 348,000 154,000
Net income after taxes $ 665,589 $ 311,161
Earnings per share:
Net income per share - basic $ 0.15 $ 0.07
Net income per share - diluted $ 0.14 $ 0.07
Weighted average shares - basic 4,320,717 4,406,870
Weighted average shares - diluted 4,768,142 4,750,454
Nine Months ended
June 30,
1999 1998
Net Sales $42,923,460 $26,443,939
Cost of Sales 31,124,402 19,820,546
Gross Margins 11,799,058 6,623,393
Selling, General and
Administrative expenses 7,029,837 4,649,857
Research & Development
Expenses 879,685 576,670
Income from operations 3,889,536 1,396,866
Other income 64,256 260,815
Net income before taxes 3,953,792 1,657,681
Tax provision 1,470,000 546,815
Net income after taxes $ 2,483,792 $ 1,110,866
Earnings per share:
Net income per share - basic $ 0.58 $ 0.25
Net income per share - diluted $ 0.53 $ 0.24
Weighted average shares - basic 4,309,144 4,404,545
Weighted average shares - diluted 4,642,774 4,611,170
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CONTACT:
Hauppauge Digital, Inc., Hauppauge
Investor Contacts:
Gerald Tucciarone
Chief Financial Officer
516/434-1600 extension 306
or
Sard Verbinnen & Co., New York
Media Contacts:
Paul Caminiti/Andrew Cole
212/687-8080
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