FORT LAUDERDALE, FL - (NewMediaWire) - November 12, 2015 - The Singing Machine Company, Inc. ("Singing Machine" or the "Company")(OTCQB: SMDM) announces the financial results for its second fiscal quarter ended September 30, 2015.
Singing Machine reports net sales of approximately $21.1 million in its second fiscal quarter ended September 30, 2015, up from approximately $16.0 million reported for the same period last year (an increase of 32%). The increase in net sales was attributable to increase in sales to its international distributors as well as an increase in sales to the Company's top three retailers. Gross margin increased to 23.5% compared to 19.8% in the same quarter in 2014 as a result of more favorable pricing and sales volume, reflected in gross profits of approximately 5.0 million up from $3.2 million in the prior year (a 56% increase in gross profits).
Operating expenses in the quarter ended September 30 were $3.1 million compared to $2.6 million in the same quarter of 2014. This increase was the result of an increase in selling expenses due to the increased sales volume. General and administrative expenses remained relatively flat at approximately $1.2 million, similar to the same quarter last year.
As a result the Company reports income from operations of approximately $1.9 million in the September 2015 quarter, compared to approximately $0.6 million in the prior year. The Company reports September 2015 quarter net income of approximately $1.1 million (or $0.03 cents per share), compared to approximately $0.3 million (or $0.01 per share) in the same quarter last year.
Through the first six months of its fiscal year, the Company also reports net sales of approximately $24.5 million and income from operations of approximately $1.1 million, compared to net sales and a loss from operations in the same six-month period last year of approximately $18.5 million and $0.2 million, respectively.
Gary Atkinson, CEO, commented, "Our results continue to reflect Singing Machine's dominance in the North American consumer karaoke machine market and the rising popularity of karaoke. We attribute several factors to our double digit sales growth rate -- the entertainment and educational value of karaoke; the breadth and quality of our product offering over a wide range of price points; the ease afforded by our machines for set up, use, recording and sharing of performances; and the ability and affordability of downloading and streaming music inexpensively using our karaoke store. We also have the industry's best roster of retailers carrying our products, now numbering over 25,000 brick and mortar storefronts as well as leading on-line venues for this holiday season. With the current order visibility we have for the quarter ending December, we anticipate continued sales growth compared to last year."
About The Singing Machine
Based in the US, 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 world-wide 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 10,000 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.
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, 2015. 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.