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Strategies & Market Trends : LORD Ernie's picks. -- Ignore unavailable to you. Want to Upgrade?

To: John McCarthy who wrote (40)	9/15/1999 5:09:00 AM
From: LORD ERNIE	Respond to of 526

Thanks John, Here is the news: Sensory Science Announces Earnings Expectations For Second Quarter and Fiscal Year Company Expects to Exceed 30% Revenue Growth for Fiscal 2000 SCOTTSDALE, Ariz., Sept. 14 /PRNewswire/ -- Sensory Science Corporation (Amex: VCR - news) today announced that it expects to report a small loss in its second fiscal quarter ending September 30, with a return to profitability in both the third and fourth quarters of its fiscal year. The expected loss is primarily due to lower than expected sales of the Company's television products. While the company is exceeding its goals for digital television market share, consumer demand for digital televisions has not grown as rapidly as anticipated. Sensory Science reiterated that its overall revenue growth for the year is still expected to exceed 30 percent, due primarily to contributions from other new products such as the RaveMP portable Internet media players, new DVD products and California Audio Labs new line of home theater systems, as well as continued growth of the Dual-Deck(TM) VCR. ''What I had hoped would be our breakout year now appears to be a transitional year as we must wait a little longer for the market for digital TVs to take off,'' said Roger Hackett, the company's chairman and chief executive officer. ''We are well positioned to take advantage of the coming conversion from analog to digital televisions. Our dealer network is on plan, our products have been well received and reviewed, and sell-through is increasing every month.'' The Consumer Electronics Industry Association (CEMA) recently revised downward its estimate for total DTV sales in 1999. However, annual DTV sales are still expected to reach two million units in the year 2001. Overall margin levels for the company have been negatively affected during the first six months of the year by lower-than-planned digital television sales as well as Dual-Deck VCR model close-out price concessions. ''We have effectively cleared out our older Dual-Deck VCR models and have begun shipping our new models,'' Hackett said. ''Our new Dual-Deck VCRs should enable us to resume or enhance our traditional levels of competitiveness and margin performance in our core business.'' ''Despite this short-term setback, we remain committed to executing our strategic plan,'' added Hackett. ''The fundamentals of the company and prospects for success of new products, including DTVs, remain strong.'' Sensory Science (formerly Go-Video) is a rapidly growing consumer electronics company specializing in developing and marketing innovative digital audio and video products, including digital televisions, Internet media players, and high-end home theater components. The company holds patents on the Dual-Deck VCR as well as other electronics products and systems, and is expanding into new product categories to take advantage of the transition from analog to digital technologies. Sensory Science also markets its products under the Go-Video, California Audio Labs, and Loewe Opta brand names. For additional information on Sensory Science via facsimile at no cost, simply call 1-800-PRO-INFO and enter code ''VCR''. This press release contains forward-looking statements which involve a number of risks and uncertainties. Among the factors that could cause actual results to differ materially from those expected are the following: business conditions and general economic conditions; competitive factors, such as pricing and marketing efforts of rival companies; timing of product introductions; ability of contract manufacturers to meet product price objectives and delivery schedules; legislative, regulatory, and industry initiatives that may affect planned or actual product features and marketing methods; and the pace and success of product research and development. For more information on the potential factors that could affect the company's financial results, please review the company's filings with the Securities and Exchange Commission, including the company's annual report on Form 10-K, the company's quarterly reports on Form 10-Q, and the company's other filings with the Securities and Exchange Commission. SOURCE: Sensory Science Corporation