Singing Machine Announces First Quarter 2018 Earnings Report

ID: 1517365
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(businesspress24) - FORT LAUDERDALE, FL -- (Marketwired) -- 08/14/17 -- ("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, 2017.

Net sales of $3.9 million for the June 30, 2017 quarter.

Gross margin improved by 3.9% from 23.5% to 27.4%.

Net loss increased by $0.09 million from $0.44 million to $0.53 million.

Earnings per share held steady at a loss of $0.01 cent per share compared to the same period last year.

Related party debt paid down by $2.6 million from approximately $3.1 million to approximately $0.5 million compared to the same period last year.

Singing Machine reports net sales of approximately $3.9 million for the quarter-ended June 30, 2017 period, a decrease of 19% from the prior year ($4.9 million). The decrease in net sales was primarily a timing issue of special promotional product that shipped early last year in the first quarter but was moved to second quarter of the current fiscal year.

Gross profit margin increased by approximately 3.9% to 27.4% net sales compared to approximately 23.5% of net sales reported in the prior year. The increase in gross profit margin is due to the mix of shipments containing less promotional product compared to last year.

Total operating expenses increased to $1.9 million compared to $1.7 million in the prior year.

As a result, the Company reported an increase of approximately $220,000 in loss from operations to $790,000 compared to a loss from operations of approximately $570,000 in the same period in the prior year. Net loss for the period increased to $527,000 compared to $437,000 in the prior year representing a loss of $0.01 per share on a fully diluted basis.

Gary Atkinson, Singing Machine CEO, commented, "Despite a drop in Q1 net sales, we''re still very happy with our progress this fiscal year. We managed to increase gross margin by almost 4% and remain confident about our growth plans for the balance of the fiscal year. Our decline in sales this quarter was the result of retailers requesting more "just-in-time" delivery of promotional product which shifted the bulk of these sales to our second quarter."

Atkinson added, "With the recent addition of Best Buy brick and mortar stores, we move into our peak season with the best and biggest names of retail partners and the largest market share for consumer karaoke products in North America. We also enter our second quarter with a backlog of orders for our new line of SMC Kids toy products, which are being well received by our customers and retailers."

The Company will host a conference call today, Monday, August 14, beginning at 10:00 am Eastern time to discuss these results and answer questions. If you would like to participate on the call, please dial 866-831-8713 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: .

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 for more details.

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, 2017. 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.

Brendan Hopkins

(407) 645-5295

More information: http:// http:// http:// http:// http:// http:// http://ins

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Date: 08/14/2017 - 05:00
Language: English
News-ID 1517365
Character count: 4800
Firma: The Singing Machine Company, Inc.
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