Welcome!

.NET Authors: ITinvolve Blog, Srinivasan Sundara Rajan, Sematext Blog, Aditya Banerjee, Jayaram Krishnaswamy

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
The 3rd International Internet of @ThingsExpo, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that its Call for Papers is now open. The Internet of Things (IoT) is the biggest idea since the creation of the Worldwide Web more than 20 years ago.
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by mining large volumes of unstructured data, and how data tracking delivers uptime when it matters most.
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impact.
There is no doubt that Big Data is here and getting bigger every day. Building a Big Data infrastructure today is no easy task. There are an enormous number of choices for database engines and technologies. To make things even more challenging, requirements are getting more sophisticated, and the standard paradigm of supporting historical analytics queries is often just one facet of what is needed. As Big Data growth continues, organizations are demanding real-time access to data, allowing immediate and actionable interpretation of events as they happen. Another aspect concerns how to deliver ...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
Code Halos - aka "digital fingerprints" - are the key organizing principle to understand a) how dumb things become smart and b) how to monetize this dynamic. In his session at @ThingsExpo, Robert Brown, AVP, Center for the Future of Work at Cognizant Technology Solutions, outlined research, analysis and recommendations from his recently published book on this phenomena on the way leading edge organizations like GE and Disney are unlocking the Internet of Things opportunity and what steps your organization should be taking to position itself for the next platform of digital competition.
Scott Jenson leads a project called The Physical Web within the Chrome team at Google. Project members are working to take the scalability and openness of the web and use it to talk to the exponentially exploding range of smart devices. Nearly every company today working on the IoT comes up with the same basic solution: use my server and you'll be fine. But if we really believe there will be trillions of these devices, that just can't scale. We need a system that is open a scalable and by using the URL as a basic building block, we open this up and get the same resilience that the web enjoys.
In their session at @ThingsExpo, Shyam Varan Nath, Principal Architect at GE, and Ibrahim Gokcen, who leads GE's advanced IoT analytics, focused on the Internet of Things / Industrial Internet and how to make it operational for business end-users. Learn about the challenges posed by machine and sensor data and how to marry it with enterprise data. They also discussed the tips and tricks to provide the Industrial Internet as an end-user consumable service using Big Data Analytics and Industrial Cloud.
How do APIs and IoT relate? The answer is not as simple as merely adding an API on top of a dumb device, but rather about understanding the architectural patterns for implementing an IoT fabric. There are typically two or three trends: Exposing the device to a management framework Exposing that management framework to a business centric logic Exposing that business layer and data to end users. This last trend is the IoT stack, which involves a new shift in the separation of what stuff happens, where data lives and where the interface lies. For instance, it's a mix of architectural styles ...
IoT is still a vague buzzword for many people. In his session at @ThingsExpo, Mike Kavis, Vice President & Principal Cloud Architect at Cloud Technology Partners, discussed the business value of IoT that goes far beyond the general public's perception that IoT is all about wearables and home consumer services. He also discussed how IoT is perceived by investors and how venture capitalist access this space. Other topics discussed were barriers to success, what is new, what is old, and what the future may hold. Mike Kavis is Vice President & Principal Cloud Architect at Cloud Technology Pa...
Dale Kim is the Director of Industry Solutions at MapR. His background includes a variety of technical and management roles at information technology companies. While his experience includes work with relational databases, much of his career pertains to non-relational data in the areas of search, content management, and NoSQL, and includes senior roles in technical marketing, sales engineering, and support engineering. Dale holds an MBA from Santa Clara University, and a BA in Computer Science from the University of California, Berkeley.
The Internet of Things (IoT) is rapidly in the process of breaking from its heretofore relatively obscure enterprise applications (such as plant floor control and supply chain management) and going mainstream into the consumer space. More and more creative folks are interconnecting everyday products such as household items, mobile devices, appliances and cars, and unleashing new and imaginative scenarios. We are seeing a lot of excitement around applications in home automation, personal fitness, and in-car entertainment and this excitement will bleed into other areas. On the commercial side, m...
Almost everyone sees the potential of Internet of Things but how can businesses truly unlock that potential. The key will be in the ability to discover business insight in the midst of an ocean of Big Data generated from billions of embedded devices via Systems of Discover. Businesses will also need to ensure that they can sustain that insight by leveraging the cloud for global reach, scale and elasticity.
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Performance is the intersection of power, agility, control, and choice. If you value performance, and more specifically consistent performance, you need to look beyond simple virtualized compute. Many factors need to be considered to create a truly performant environment. In his General Session at 15th Cloud Expo, Harold Hannon, Sr. Software Architect at SoftLayer, discussed how to take advantage of a multitude of compute options and platform features to make cloud the cornerstone of your online presence.
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...
Since 2008 and for the first time in history, more than half of humans live in urban areas, urging cities to become “smart.” Today, cities can leverage the wide availability of smartphones combined with new technologies such as Beacons or NFC to connect their urban furniture and environment to create citizen-first services that improve transportation, way-finding and information delivery. In her session at @ThingsExpo, Laetitia Gazel-Anthoine, CEO of Connecthings, will focus on successful use cases.
DevOps Summit 2015 New York, co-located with the 16th International Cloud Expo - to be held June 9-11, 2015, at the Javits Center in New York City, NY - announces that it is now accepting Keynote Proposals. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long development cycles that produce software that is obsolete at launch. DevOps may be disruptive, but it is essential.
“With easy-to-use SDKs for Atmel’s platforms, IoT developers can now reap the benefits of realtime communication, and bypass the security pitfalls and configuration complexities that put IoT deployments at risk,” said Todd Greene, founder & CEO of PubNub. PubNub will team with Atmel at CES 2015 to launch full SDK support for Atmel’s MCU, MPU, and Wireless SoC platforms. Atmel developers now have access to PubNub’s secure Publish/Subscribe messaging with guaranteed ¼ second latencies across PubNub’s 14 global points-of-presence. PubNub delivers secure communication through firewalls, proxy ser...
The industrial software market has treated data with the mentality of “collect everything now, worry about how to use it later.” We now find ourselves buried in data, with the pervasive connectivity of the (Industrial) Internet of Things only piling on more numbers. There’s too much data and not enough information. In his session at @ThingsExpo, Bob Gates, Global Marketing Director, GE’s Intelligent Platforms business, to discuss how realizing the power of IoT, software developers are now focused on understanding how industrial data can create intelligence for industrial operations. Imagine ...