Mackie Designs Inc. Announces Record Year End Revenues For 1997
February 17, 1998 – Woodinville, Wash. – Mackie Designs Inc. (Nasdaq:MKIE) today announced earnings and revenues for fourth quarter and fiscal year ended December 31, 1997. Revenues for the fourth quarter were $17.8 million compared to $16.9 million for the comparable period in 1996. Revenues for the year increased to a record $74.9 million.
The Company generated net income of $1,166,000, or $0.09 per share, for the fourth quarter of 1997, compared to $1,316,000, or $0.10 per share, for the fourth quarter of 1996. Year to date earnings were $5,537,000, or $0.41 per share in 1997 compared with $7,421,000, or $0.55 per share in 1996. Research and development costs for 1997 were $5.9 million, or $0.31 per share after-tax, compared with $3.6 million, or $0.18 per share after-tax, in 1996.
"In 1997, we built the foundation for the future success and growth of our company," commented Chief Operating Officer Roy Wemyss. "Our significant investment in R&D resulted in three new categories of products for the company, totaling five new products for the year. This represents a total increase of over 50% in the number of primary products previously offered by Mackie.
"In addition, we took steps to safeguard the base technology used in our core business, and have initiated ways to increase the performance of our international business. Although we were fairly flat year-to-year in revenues, we believe that developed technology combined with our core competencies will provide a solid platform for future growth."
New Products
Mackie introduced five new products in 1997: two amplifiers, the M1200 and M1400, along with the company's first large-format console, the 40•8. Additionally, Mackie's first studio monitor, the HR824 shipped late Q3, and the Human User Interface (HUI) digital interface for digital audio workstations was released to production late fourth quarter. These new products are used in a variety of Mackie's traditional mixer markets, including live and recorded sound, multimedia production, and video post-production.
Growth Strategy
"Mackie invested significant dollars in R&D in the past year; a large investment when compared to any prior year, but necessary to take us into the future," stated Greg Mackie, founder and Chief Executive Officer. "We are poised to launch our Digital 8•Bus, which we are anxious to bring to market. Feedback to date has been very positive and I am confident that Mackie's entry into digital will be well received. The Mackie brand continues to be known for user friendly innovations, not only in the mixer category, but also in amps and speaker monitors as well. We intend to maintain this position."
Annual Shareholder's Meeting
Mackie Designs Inc. also announces that its 1998 Annual Shareholder's Meeting will be held on Tuesday, May 5, 1998, at 9:00 am at the Bellevue Club in Bellevue, Washington. Shareholders of record of the company's stock at the close of business on March 17, 1998 are entitled to notice of, and to vote at, the meeting.
Mackie Designs is a leading designer, manufacturer and marketer of professional audio equipment. The company sells audio mixers, mixer systems, power amplifiers, studio monitors and related audio equipment worldwide.
NOTE: "Mackie" is a registered trademark of Mackie Designs Inc. in the United States and other countries.
All forward-looking statements contained herein involve risks and uncertainties, including technical and competitive factors, which could cause results to differ materially. Such risks are detailed in Mackie Design's report on Form 10K dated December 31, 1997 and Form 10Q dated September 30, 1998 and filed with the SEC.
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