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Technology Stocks : Nimbus CD International -- Ignore unavailable to you. Want to Upgrade?

To: Don Dorsey who wrote (1386)	2/12/1998 12:44:00 PM
From: Harold	Respond to of 1673

newsalert.com Hope this will give you your answer. Harold

To: Don Dorsey who wrote (1386)	2/12/1998 1:19:00 PM
From: Harold	Respond to of 1673

I am sorry for my previous post what I wanted to give you is part of today's release: et Sales. Total discs sold increased 19.8% to 59.9 million discs in the three months ended December 31, 1997 from 50.0 million discs in the same period of 1996. The increase was the result of a 29.7% increase in CD-ROM unit sales to 40.6 million discs in the three months ended December 31, 1997 from 31.3 million discs in the same period of 1996. CD-Audio unit sales decreased 1.1% to 18.5 million units in the three months ended December 31, 1997 from 18.7 million units in the same period of 1996. In the United States, total discs sold increased 20.9% to 38.2 million units in the three months ended December 31, 1997 from 31.6 million units in the same period of 1996. United States CD-ROM volume increased 22.5% to 27.8 million discs in the third fiscal quarter of 1998 from 22.7 million discs in the same period of fiscal 1997. CD Audio volume increased in the United States by 9.0% to 9.7 million discs in the three months ended December 31, 1997 from 8.9 million discs in the same period of 1996. European total unit sales increased 18.6% to 21.7 million discs in the three months ended December 31, 1997 from 18.3 million discs in the same period of 1996. CD-ROM volume increased 50.6% to 12.8 million discs from 8.5 million discs while CD-Audio sales units decreased 10.2% to 8.8 million discs during the third quarter of fiscal 1998 from 9.8 million units in the same period of fiscal 1997. Net sales increased 2.7% to $41.5 million in the three months ended December 31, 1997 from $40.4 million in the same period of 1996. Compact disc and related revenues, excluding DVD, increased 1.6% to $39.3 million in the three months ended December 31, 1997 from $38.7 million in the third quarter of fiscal 1997. DVD revenues were $2.2 million in the three months ended December 31, 1997, while turnkey and other related service revenues of Nimbus Software Services, Inc. ("NSS"), which closed its Sunnyvale facility in the first quarter of fiscal 1998, contributed $1.3 million of revenues for the three month period ended December 31, 1996. The increase in net sales is due to the increase in disc volumes described above, offset by a 13% decline in the average disc selling price from $0.77 to $0.67 for the three month periods ended December 31, 1996 and 1997, respectively. The price decline reflects an oversupply of production capacity in Europe as well as the continued shift in sales mix to CD-ROM from CD-Audio, which typically has a higher per unit packaging configuration. In addition, the Company realized lower disc prices under a vendor supply agreement. The price declines noted above were partially mitigated by exchange rate changes between the United States and the United Kingdom during the three month periods ended December 31, 1997 and 1996, respectively. Gross Profit. Gross profit increased 3.1% to $13.3 million in the three months ended December 31, 1997 from $12.9 million in the same period of 1996. Gross profit as a percentage of net sales increased to 32.0% in the three months ended December 31, 1997 from 31.9% in the same period of 1996. The increase in gross profit was attributable to reduced raw material costs and a decrease in the overall level of factory overhead expenses due to the closure of the Company's Sunnyvale facility, partially offset by a decline in the average selling price noted above. The Company's gross profit margin was unfavorably impacted by an increase in depreciation expense resulting from capital expansion and acquisition projects in fiscal 1997 and 1998, increased packaging material and labor due to higher sales levels of non-automated packing configurations, and increased factory overhead charges for additional warehousing facilities at both the Charlottesville and Provo locations. Finally, the Company's gross profit margin included the absorption of depreciation and factory overhead charges at the Luxembourg facility as the plant commenced disc production in December. If the results of the Luxembourg facility were excluded, the Company's gross profit margin would have been 32.9%. Selling, General and Administrative Expenses. Selling, general and administrative expenses decreased 2.6% to $3.7 million in the three months ended December 31, 19