Fort Lauderdale, FL, Aug. 14, 2019 (GLOBE NEWSWIRE) -- The Singing Machine Company, Inc. ("Singing Machine" or the "Company") (OTCQX:SMDM) - the North American leader in consumer karaoke products - today announced its financial results for its first quarter ended June 30, 2019.
First Quarter Snapshot:
- Net sales increased 166% to $4.8 million from $1.8 million in the first quarter of the prior year.
- Reported gross margin of 21.3%.
- Net loss of $0.87 million for the quarter or $0.02 per diluted share.
Singing Machine reports net sales of approximately $4.8 million for the quarter ended June 30, 2019 period compared to $1.8 million in the comparable quarter of the prior year. The increase in net sales was primarily due to earlier shipments of goods to a major retailer for its upcoming holiday promotions.
Gross profit margin decreased by 0.8% to 20.5% net sales compared to approximately 21.3% of net sales reported in the prior year. The decrease in gross margin was mainly due to a heavier mix of promotional product for a retailer's Black Friday event.
Total operating expenses increased to $2.1 million compared to $1.7 million in the prior year. The increase in expenses was primarily due to an increase in variable selling expenses of $0.2 million related to the overall increase in sales.
As a result, the Company reported a net loss of $0.87 million compared to a net loss of $1.1 million in the prior year.
Gary Atkinson, Singing Machine CEO, commented, "We are thrilled to see a strong start to the fiscal year with a 166% increase in YoY first-quarter net sales. Our new "Carpool Karaoke Mic" has gotten off to a strong start garnering millions of digital impressions and fantastic media coverage along with overwhelmingly positive consumer feedback. We look forward to continuing to leverage the popularity of music and singing into the coming holiday season with anticipated stronger distribution and national exposure."
Earnings Call Information:
The Company will host a conference call today, Wednesday, August 14, beginning at 10:00 am Eastern Time to discuss these results and answer questions. If you would like to participate in the call, please dial 877-876-9174 and use conference ID: SMDM.
An audio rebroadcast of the call will be available later in the day after the earnings call and can be heard at www.singingmachine.com/investors.
For access to the full report, including financial tables, click here
About The Singing Machine
Based in the U.S., Singing Machine® is the North American leader in consumer karaoke products. The first to provide karaoke systems for home entertainment in the United States, the Company sells its products worldwide through major mass merchandisers and on-line retailers. We offer the industry's widest line of at-home karaoke entertainment products, which allow consumers to find a machine that suits their needs and skill level. As the most recognized brand in karaoke, Singing Machine products incorporate the latest technology for singing practice, music listening, entertainment and social sharing. The Singing Machine provides consumers the best warranties in the industry and access to over 13,000 songs for streaming and download. Singing Machine products are sold through most major retailers in North America and also internationally. See www.singingmachine.com for more details.
Investor Relations Contact:
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, 2019. 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.
Source: The Singing Machine Company, Inc.