Dallas, Texas (November 15, 2011) – StockGuru Shines its Spotlight on The Singing Machine Company, Inc. (OTCBB: SMDM). The Company announced results for its second fiscal quarter ended September 30, 2011, yesterday. It closed above its fifty-two week range on November 14, 2011, at $0.16, trading in a fifty-two week range of $0.09 – 0.02.
For the quarter, the Company reported net sales of approximately $14.1 million compared to $8.3 million in the same period last year, an increase of approximately $5.8 million (approximately 70% increase). Gross margins also improved for the quarter from 20.3% to 22.6% (increase of 2.3%) as compared to the same period last year. Despite the 70% increase in net sales, the Company was also able to hold G&A expenses relatively steady, reporting approximately $655,000 in G&A expenses for the quarter, as compared to approximately $634,000 in the same period last year. The drastic improvement in net sales over last year is attributed to new business from Target and BJ’s Wholesale Club in addition to earlier commitments from existing customers.
As a result, the Company reported net income of approximately $1.5 million for the quarter ended September 30, 2011, compared to approximately $290,000 over the same period last year, representing an increase of approximately $1.2 million in net income. For the six months ended September 30, 2011 the Company reported net income of approximately $957,000 as compared to a net loss of approximately $188,000 over the same period last year.
“This marks a truly remarkable turnaround,” commented Gary Atkinson, Singing Machine CEO. “Our goal for this year was to improve distribution and so far the numbers show we’ve done a good job. Through the first half of this year, the Company has added almost an additional $6 million in net sales over last year and recognized almost $1.1 million improvement in net income compared to last year. A lot of credit goes to our Sales Department for aggressively growing our sales distribution channels without compromising our gross margin.”
Added Bernardo Melo, VP of Global Sales and Marketing, “It’s been a fun year to see the excitement of the home karaoke segment continue its steady climb back up and be COOL again with consumers. With the support of our key retailers, the Singing Machine continues to be the leading brand in karaoke. We will be well represented this holiday season with features on toy and electronic holiday catalogs, multiple Black Friday deals, Cyber Monday promotions, and many dot com email blasts. We look forward to carrying our momentum throughout the holiday season.”
About The Singing Machine
Incorporated in 1982, The Singing Machine Company develops and distributes a full line of consumer-oriented karaoke machines and music under The Singing Machine™, SMDigital™, SoundX™, and Sound X Kids™ and other brand names. The first to provide karaoke systems for home entertainment in the United States, The Singing Machine sells its products in North America, Europe and Australia. The Singing Machine is also the first to offer digital music downloads for play on home karaoke machines.
Forward-Looking Statements
This press release contains forward looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements are based on current expectations, estimates and projections about the Company’s business based, in part, on assumptions made by management and include, but are not limited to statements about our financial statements for the fiscal year ended March 31, 2011. You should review our risk factors in our SEC filings which are incorporated herein by reference. Such forward looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward looking statement to reflect events or circumstances after the date of this release.
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