has returned to profitability after three years of losses. It also has a new chief executive officer. The Coconut Creek-based developer and distributor of karaoke machines, music and other electronic products said it earned $738,588, or 3 cents a share, on sales of $26.
73 million for the year ended March 31. For the same period the year before, Singing Machine (AMEX: SMD) recorded losing $1.9 million, or 19 cents a share, on sales of $32.
2 million. The company also reported improvements in its balance sheet, including an increase in working capital to $2.4 million from a $4.
3 million deficit at the same time the year before, as well as an increase in shareholders equity to $2.9 million from a $3.7 million deficit.
Despite all that, though, Singing Machine Chief Financial Officer Danny Zheng said the company is far from satisfied. What remains is to drive top-line growth going forward, and we believe that we have positioned the company to make this happen in fiscal 2008, he said. The officer noted Singing Machine s development and introduction of a new line of electronic products based on MGA s Bratz dolls.
The new products include DVD players, combination TV/DVDs, boom boxes, mini radios and sunglass radios jointly developed by Singing Machine and MGA. Our Bratz line is now being carried in Toys R Us stores nationwide, for example, and we currently expect these products to make a significant contribution to revenue in fiscal 2008, Zheng said. One of the items the company may look to further improve is its loss from operations.
The annual number decreased to $1.7 million from $2.15 million as Singing Machine cut operating expenses 15 percent.
That let gross margin tick up to 23 percent of revenue from 22 percent. To implement Singing Machine s strategic expansion plan, the company has named Anton Tony Handal to be its CEO. Contact the Editor Need Assistance?
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