Click here to close now.

Welcome!

Microsoft Cloud Authors: Liz McMillan, Elizabeth White, Pat Romanski, Jaynesh Shah, Carmen Gonzalez

News Feed Item

Singing Machine Announces $14.3 Million in Net Sales, Profit in 2nd Quarter Earnings Release

FORT LAUDERDALE, Fla., Nov. 13, 2012 /PRNewswire/ -- The Singing Machine Company, Inc.  ("Singing Machine" or the "Company") (OTCBB: SMDM) announces the results for its second fiscal quarter ended September 30, 2012.

For the quarter, the Company reported net sales of approximately $14.3 million compared to $14.1 million in the same period last year, an increase of approximately $0.2 million (approximately 1% increase). Gross margins also improved for the quarter from 22.6% to 24.1% (increase of 1.5%) as compared to the same period last year. Total operating expenses went up from approximately $1.7 million to $2.0 million, compared to the same period last year.  

As a result, the Company reported net income of approximately $1.4 million for the quarter ended September 30, 2011, compared to approximately $1.5 million over the same period last year. For the quarter, income per share remained steady at $0.04 cents per share as compared to the same period last year. The Company reports the flat growth in net sales and net income is primarily a timing issue due to retail customers taking delivery later in the year for the holiday.  

"We're pleased with our results so far," commented Gary Atkinson, Singing Machine CEO. "We were able to meet our 2nd quarter numbers from the prior year, despite being forced to delay some shipments to some of our retail customers. As we head into our holiday season, look for us in new and existing retail stores and keep your eyes out for some Black Friday deals. We're also pleased to announce our new website launch which you can visit at www.singingmachine.com."

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. See www.singingmachine.com for more details.

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.

(Financial statements attached)


The Singing Machine Company, Inc. and Subsidiaries

CONDENSED CONSOLIDATED BALANCE SHEETS 






September 30, 2012


 March 31, 2012 




 (Unaudited) 


 (Audited) 

Assets





Current Assets






Cash

$

2,828,669

$

267,465


Accounts receivable, net of allowances of $198,717 and      






   $168,554, respectively


4,786,689


785,490


Due from related party - Starlight Consumer Electronics USA, Inc.


236,267


36,036


Due from related party - Starlight Electronics USA, Inc.


43,509


58,536


Due from related party - Starlight Electronics Co., Ltd.


369,692


-


Due from related party - Cosmo Communications Canada, Ltd


310,974


68,291


Inventories, net


7,524,056


4,008,392


Prepaid expenses and other current assets


47,155


53,233


           Total Current Assets


16,147,011


5,277,443







Property and equipment, net


338,633


296,222

Other non-current assets


159,957


159,674


          Total Assets

$

16,645,601

$

5,733,339







Liabilities and Shareholders' Equity (Deficit)





Current Liabilities






Accounts payable

$

7,984,620

$

1,303,395


Due to related party - Starlight Marketing Development, Ltd.


1,924,431


1,924,431


Due to related party - Starfair Electronics Company, Ltd.


276,524


-


Due to related party - Ram Light Management, Ltd.


1,683,247


1,683,247


Due to related party - Starlight R&D, Ltd.


512,061


416,026


Due to related party - Cosmo Communications USA, Inc.


240,394


226,747


Due to related party - Starlight Consumer Electronics Co., Ltd.


1,996,133


103,545


Due to related parties - Other Starlight Group Companies


3,534


3,534


Accrued expenses


1,050,055


168,156


Obligations to clients for returns and allowances


112,367


242,379


Warranty provisions


462,387


219,760


        Total Current Liabilities


16,245,753


6,291,220







Shareholders' Equity (Deficit)






Preferred stock, $1.00 par value; 1,000,000 shares authorized; no shares issued and outstanding







-


-


Common stock, Class A, $.01 par value;  100,000 shares 






  authorized; no shares issued and outstanding


-


-


Common stock, $0.01 par value;  100,000,000 shares authorized; 37,960,794 and 37,960,794 shares issued and outstanding, respectively







379,607


379,607


Additional paid-in capital


19,144,379


19,141,098


Accumulated deficit


(19,124,138)


(20,078,586)


        Total Shareholders' Equity (Deficit)


399,848


(557,881)


        Total Liabilities and Shareholders' Equity (Deficit)

$

16,645,601

$

5,733,339







The accompanying notes are an integral part of these condensed consolidated financial statements.


The Singing Machine Company, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS 

(Unaudited)


















For Three Months Ended


For Six Months Ended


September 30,
2012


September 30,
2011


September 30,
2012


September 30,
2011

















Net Sales

$   14,376,086


$    14,149,564


$    16,138,791


$    15,937,610









Cost of Goods Sold

10,905,307


10,956,081


12,223,934


12,315,584









Gross Profit

3,470,779


3,193,483


3,914,857


3,622,026









Operating Expenses








    Selling expenses

1,250,642


1,041,388


1,499,290


1,390,064

    General and administrative expenses

742,708


654,992


1,385,826


1,210,604

    Depreciation and amortization

34,076


29,313


66,851


61,391

Total Operating Expenses

2,027,426


1,725,693


2,951,967


2,662,059









Income from Operations

1,443,353


1,467,790


962,890


959,967









Other Expenses








    Interest expense

(8,442)


(2,250)


(8,442)


(2,344)









Income before provision for income taxes

1,434,911


1,465,540


954,448


957,623









Provision for  income taxes

-


-


-


-









Net Income 

$     1,434,911


$      1,465,540


$        954,448


$         957,623









Income per Common Share








    Basic and Diluted 

$             0.04


$              0.04


$              0.03


$              0.03









Weighted Average Common and Common 








    Equivalent Shares:








    Basic and Diluted

37,960,794


37,835,793


37,960,794


37,835,793









The accompanying notes are an integral part of these condensed consolidated financial statements.


The Singing Machine Company, Inc. and Subsidiaries

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)






For Six Months Ended






September 30, 2012


September 30, 2011

















Cash flows from operating activities






Net Income 

$

954,448

$

957,623


Adjustments to reconcile net income to net cash and cash equivalents provided by (used in) operating activities:







Depreciation and amortization


66,851


61,391



Change in inventory reserve 


(167,000)


153,926



Change in allowance for bad debts


22,913


43,994



Disposal of property and equipment


-


4,027



Stock based compensation


3,281


14,185



Warranty provisions


242,627


294,346


   Changes in assets and liabilities:






     (Increase) Decrease in:







Accounts receivable


(4,024,112)


(10,239,086)



Inventories


(3,348,664)


(1,203,562)



Prepaid expenses and other current assets


6,078


6,064



Other non-current assets


(283)


(658)


      Increase (Decrease) in:







Accounts payable 


6,681,225


5,415,195



Net due to related parties


1,481,215


2,180,058



Accrued expenses


881,899


686,472



Obligations to clients for returns and allowances


(130,012)


(66,446)




Net cash provided by (used in) operating activities


2,670,466


(1,692,471)

Cash flows from investing activities






Purchase of property and equipment


(109,262)


(83,369)




Net cash used in investing activities


(109,262)


(83,369)

Cash flows from financing activities






Net proceeds from short-term bank loan 


-


1,293,326


Payments on long-term financing obligation


-


(4,547)




Net cash provided by financing activities


-


1,288,779

Change in cash 


2,561,204


(487,061)









Cash at beginning of period


267,465


674,712

Cash at end of period

$

2,828,669

$

187,651









Supplemental Disclosures of Cash Flow Information:






Cash paid for interest

$

8,442

$

2,344









The accompanying notes are an integral part of these condensed consolidated financial statements.


 

SOURCE The Singing Machine Company, Inc.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
There's no doubt that the Internet of Things is driving the next wave of innovation. Google has spent billions over the past few months vacuuming up companies that specialize in smart appliances and machine learning. Already, Philips light bulbs, Audi automobiles, and Samsung washers and dryers can communicate with and be controlled from mobile devices. To take advantage of the opportunities the Internet of Things brings to your business, you'll want to start preparing now.
P2P RTC will impact the landscape of communications, shifting from traditional telephony style communications models to OTT (Over-The-Top) cloud assisted & PaaS (Platform as a Service) communication services. The P2P shift will impact many areas of our lives, from mobile communication, human interactive web services, RTC and telephony infrastructure, user federation, security and privacy implications, business costs, and scalability. In his session at @ThingsExpo, Robin Raymond, Chief Architect at Hookflash, will walk through the shifting landscape of traditional telephone and voice services ...
Explosive growth in connected devices. Enormous amounts of data for collection and analysis. Critical use of data for split-second decision making and actionable information. All three are factors in making the Internet of Things a reality. Yet, any one factor would have an IT organization pondering its infrastructure strategy. How should your organization enhance its IT framework to enable an Internet of Things implementation? In his session at Internet of @ThingsExpo, James Kirkland, Chief Architect for the Internet of Things and Intelligent Systems at Red Hat, described how to revolutioniz...
The world is at a tipping point where the technology, the device and global adoption are converging to such a point that we will see an explosion of a world where smartphone devices not only allow us to talk to each other, but allow for communication between everything – serving as a central hub from which we control our world – MediaTek is at the heart of both driving this and allowing the markets to drive this reality forward themselves. The next wave of consumer gadgets is here – smart, connected, and small. If your ambitions are big, so are ours. In his session at @ThingsExpo, Jack Hu, D...
The security devil is always in the details of the attack: the ones you've endured, the ones you prepare yourself to fend off, and the ones that, you fear, will catch you completely unaware and defenseless. The Internet of Things (IoT) is nothing if not an endless proliferation of details. It's the vision of a world in which continuous Internet connectivity and addressability is embedded into a growing range of human artifacts, into the natural world, and even into our smartphones, appliances, and physical persons. In the IoT vision, every new "thing" - sensor, actuator, data source, data con...
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, June 9-11, 2015, at the Javits Center in New York City. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
The 4th International Internet of @ThingsExpo, co-located with the 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - announces that its Call for Papers is open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
SYS-CON Events announced today that O'Reilly Media has been named “Media Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York City, NY. O'Reilly Media spreads the knowledge of innovators through its books, online services, magazines, and conferences. Since 1978, O'Reilly Media has been a chronicler and catalyst of cutting-edge development, homing in on the technology trends that really matter and spurring their adoption by amplifying "faint signals" from the alpha geeks who are creating the future. An active participa...
We’re entering a new era of computing technology that many are calling the Internet of Things (IoT). Machine to machine, machine to infrastructure, machine to environment, the Internet of Everything, the Internet of Intelligent Things, intelligent systems – call it what you want, but it’s happening, and its potential is huge. IoT is comprised of smart machines interacting and communicating with other machines, objects, environments and infrastructures. As a result, huge volumes of data are being generated, and that data is being processed into useful actions that can “command and control” thi...
There will be 150 billion connected devices by 2020. New digital businesses have already disrupted value chains across every industry. APIs are at the center of the digital business. You need to understand what assets you have that can be exposed digitally, what their digital value chain is, and how to create an effective business model around that value chain to compete in this economy. No enterprise can be complacent and not engage in the digital economy. Learn how to be the disruptor and not the disruptee.
Buzzword alert: Microservices and IoT at a DevOps conference? What could possibly go wrong? In this Power Panel at DevOps Summit, moderated by Jason Bloomberg, the leading expert on architecting agility for the enterprise and president of Intellyx, panelists will peel away the buzz and discuss the important architectural principles behind implementing IoT solutions for the enterprise. As remote IoT devices and sensors become increasingly intelligent, they become part of our distributed cloud environment, and we must architect and code accordingly. At the very least, you'll have no problem fil...
There's Big Data, then there's really Big Data from the Internet of Things. IoT is evolving to include many data possibilities like new types of event, log and network data. The volumes are enormous, generating tens of billions of logs per day, which raise data challenges. Early IoT deployments are relying heavily on both the cloud and managed service providers to navigate these challenges. In her session at Big Data Expo®, Hannah Smalltree, Director at Treasure Data, discussed how IoT, Big Data and deployments are processing massive data volumes from wearables, utilities and other machines...
With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo in Silicon Valley. Learn what is going on, contribute to the discussions, and ensure that your enterprise is as "IoT-Ready" as it can be! Internet of @ThingsExpo, taking place Nov 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 17th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal an...
The worldwide cellular network will be the backbone of the future IoT, and the telecom industry is clamoring to get on board as more than just a data pipe. In his session at @ThingsExpo, Evan McGee, CTO of Ring Plus, Inc., discussed what service operators can offer that would benefit IoT entrepreneurs, inventors, and consumers. Evan McGee is the CTO of RingPlus, a leading innovative U.S. MVNO and wireless enabler. His focus is on combining web technologies with traditional telecom to create a new breed of unified communication that is easily accessible to the general consumer. With over a de...
Disruptive macro trends in technology are impacting and dramatically changing the "art of the possible" relative to supply chain management practices through the innovative use of IoT, cloud, machine learning and Big Data to enable connected ecosystems of engagement. Enterprise informatics can now move beyond point solutions that merely monitor the past and implement integrated enterprise fabrics that enable end-to-end supply chain visibility to improve customer service delivery and optimize supplier management. Learn about enterprise architecture strategies for designing connected systems tha...
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, a...
The Internet of Things (IoT) promises to evolve the way the world does business; however, understanding how to apply it to your company can be a mystery. Most people struggle with understanding the potential business uses or tend to get caught up in the technology, resulting in solutions that fail to meet even minimum business goals. In his session at @ThingsExpo, Jesse Shiah, CEO / President / Co-Founder of AgilePoint Inc., showed what is needed to leverage the IoT to transform your business. He discussed opportunities and challenges ahead for the IoT from a market and technical point of vie...
Grow your business with enterprise wearable apps using SAP Platforms and Google Glass. SAP and Google just launched the SAP and Google Glass Challenge, an opportunity for you to innovate and develop the best Enterprise Wearable App using SAP Platforms and Google Glass and gain valuable market exposure. In his session at @ThingsExpo, Brian McPhail, Senior Director of Business Development, ISVs & Digital Commerce at SAP, outlined the timeline of the SAP Google Glass Challenge and the opportunity for developers, start-ups, and companies of all sizes to engage with SAP today.
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water, are pursuing SmartGrid initiatives that represent one of the more mature examples of SAE. We have s...