Jim: Same news on Business wire. 2:1 More float will attract more funds to us. biz.yahoo.com
Thursday February 10, 8:10 am Eastern Time
Company Press Release
Hauppauge Digital Reports Fiscal 2000 First Quarter Financial Results and Two-for-One Stock Split
Revenue Increase 46%
Net Income Up 55%
HAUPPAUGE, N.Y.--(BUSINESS WIRE)--Feb. 10, 2000--Hauppauge Digital, Inc. (NASDAQ:HAUP - news), the leading developer and manufacturer of digital video TV and data broadcast receiver products for personal computers, today reported financial results for its fiscal first quarter ending December 31, 1999.
Net sales for the quarter increased 46% to $22,043,649 from $15,056,999 for the prior year's first quarter. Net income for the quarter increased 55% to $1,476,000 or $0.34 and $0.30 per share on a basic and diluted basis, respectively, compared to $953,000, or $0.22 and $0.21 per share on a basic and diluted basis for the prior year's first quarter.
Hauppauge's Board of Directors authorized the splitting of the company's common stock on a two-for-one basis for shareholders of record on February 24, 2000. Shares resulting from the split are expected to be distributed by the company's transfer agent on March 24, 2000.
Ken Plotkin, Hauppauge's Chief Executive Officer, stated, ``We're pleased with our performance for the first quarter. Sales of the new products introduced in the fourth quarter of fiscal 1999, WinTV-USB, WinTV-GO and WinTV-DVB, showed excellent growth. In addition, we saw sales grow in all product categories except highend professional WinTV boards, where Year 2000 'lock downs' reduced sales. During the first quarter we began shipments of the first digital broadcast receiver board in the U.S. market, our new WinTV-D. As previously announced, we intend to purchase the assets of Eskape Labs, a company based in California, that creates and markets video capture and TV tuner products for the Macintosh market.'
The company's new operation in Ireland was established in this quarter, and has contributed to the decrease in the corporate tax rate. As this operation ramps up over the next two quarters, the company's gross profit margins should increase due to lowered manufacturing costs for shipments made into the European market.
About Hauppauge Digital, Inc.
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 in the U.S. and its Hauppauge Digital Europe Sarl subsidiary in Europe, 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, Singapore and California. The Company's Internet web site can be found at hauppauge.com.
Certain statements in this Release constitute ``forward-looking statements' within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among other things, the following: the Company's ability to manage growth; the risks associated with successfully integrating acquired businesses; the risks associated with dependence on resellers, contract manufacturers and other third-party relationships; the uncertainty of continued market acceptance of PC-based video products; the Company's highly competitive industry and rapid technological change within the Company's industry; the risks associated with development and introduction of new products; the need to manage product transitions; the risks associated with product defects and reliability problems; the risks associated with single source suppliers; the uncertainty of patent and proprietary technology protection and reliance on technology licensed from third parties; the risks of third party claims of infringement; the Company's dependence on retention and attraction of key employees; the risks associated with future acquisitions; the risks associated with international licensing and operations; general economic and business conditions; and other factors referenced in this Release.
HAUPPAUGE DIGITAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months ended
December 31,
1999 1998
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Net Sales $22,043,649 $15,056,999
Cost of Sales 16,735,724 11,048,110
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Gross Margins 5,307,925 4,008,889
Selling, General and Administrative
expenses 3,083,202 2,309,314
Research & Development Expenses 402,970 241,092
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Income from operations 1,821,753 1,458,483
Other income 84,402 91,168
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Income before taxes on income 1,906,155 1,549,651
Taxes on income 430,000 597,000
----------- -----------
Net income $ 1,476,155 $ 952,651
Net income per share:
Basic $ 0.34 $ 0.22
Diluted $ 0.30 $ 0.21
Weighted average shares-basic 4,346,589 4,297,640
Weighted average shares-diluted 4,891,920 4,599,497
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Contact:
Investor Contact:
Hauppauge Digital, Inc.
Gerald Tucciarone - Chief Financial Officer
631/630-1306
e-mail: jtucciarone@hauppauge.com |
