MACKIE DESIGNS INC. ANNOUNCES THIRD QUARTER EARNINGS
October 13, 1997 – Woodinville, Wash. – Mackie Designs Inc. (Nasdaq: MKIE), today announced revenues and income for the third quarter and nine months ended September 30, 1997. Revenues for the quarter were $21.6 million, compared with $16.1 million for the comparable quarter in 1996.
Net income for the quarter was $1.8 million, or $0.13 a share, compared with net income of $1.3 million, or $0.10 a share, in the third quarter of last year. Revenues for the first nine months of 1997 were $57.0 million versus $56.4 million in the first nine months of 1996. Net income for the first nine months of 1997 was $4.4 million, or $0.32 per share, versus $6.1 million, or $0.44 per share, for the first nine months of 1996.
"Q3 revenues, quarter to quarter, were up 34% from last year, and net income, quarter to quarter, increased 35%. The increase is a function of new product introductions, which suggests that we're beginning to realize some momentum in the marketplace," commented Chief Operating Officer Roy Wemyss.
"We have successfully introduced four new products this year, with a fifth, the HUI, scheduled for release this month," continued Wemyss, "We are now expecting to release the Digital 8•Bus late in the quarter, and are very encouraged by the response it received at the recent AES trade show in New York."
Income Statement | Balance Sheet
|
MACKIE DESIGNS INC.
Income Statements
(In thousands, except per share data)
|
| |
Three months ended September 30
|
Nine months ended September 30
|
| |
1997
|
1996
|
1997
|
1996
|
| Net sales |
$21,596
|
$16,092
|
$57,048
|
$56,375
|
| Cost of sales |
13,746
|
10,114
|
35,685
|
34,619
|
| Gross profit |
7,850
|
5,978
|
21,363
|
21,756
|
| Operating expenses: |
|
|
|
|
- Marketing and sales
|
2,588
|
2,103
|
7,456
|
7,074
|
- Administrative
|
1,371
|
1,212
|
3,686
|
3,834
|
- Research and development
|
1,459
|
879
|
4,393
|
2,377
|
| Total operating expenses |
5,418
|
4,194
|
15,535
|
13,285
|
| Operating income |
2,432
|
1,784
|
5,828
|
8,471
|
| Interest income (expense), net |
203
|
229
|
625
|
666
|
| Other income (expense) |
0
|
0
|
-7
|
-11
|
| Income before provision for income
taxes |
2,635
|
2,013
|
6,446
|
9,126
|
| Provision for income taxes |
817
|
666
|
2,075
|
3,021
|
| Net income |
1,818
|
1,347
|
4,371
|
6,105
|
| Net income per share |
$ 0.13
|
$ 0.10
|
$ 0.32
|
$ 0.44
|
| Shares used in computation of net income
per share |
13,757
|
13,658
|
13,727
|
13,765
|
|
MACKIE DESIGNS INC.
Balance Sheets
(In thousands)
|
| |
September 30, 1997
|
December 31, 1996
|
| Assets |
| Current assets: |
|
|
- Cash
|
$ 1,120
|
$ 2,366
|
- Marketable securities
|
10,463
|
11,689
|
- Accounts receivable, net
|
14,426
|
9693
|
- Inventories
|
15,820
|
10,317
|
- Income taxes receivable
|
0
|
183
|
- Deferred taxes
|
865
|
685
|
- Prepaid expenses & other current assets
|
1,048
|
673
|
![]() Total current
assets
|
43,742
|
35,606
|
| Equipment, net |
10,375
|
10,246
|
| Other assets |
414
|
404
|
![]() Total
assets
|
$ 54,531
|
$ 46,256
|
| |
|
|
| Liabilities and Shareholders'
Equity |
| Current liabilities: |
|
|
- Accounts payable
|
$ 4,634
|
$ 2,053
|
- Commissions payable
|
781
|
627
|
- Accrued liabilities
|
1,731
|
906
|
- Income taxes payable
|
819
|
0
|
![]() Total current
liabilities
|
7,965
|
3,586
|
| Deferred rent |
72
|
42
|
| Deferred taxes |
627
|
345
|
| Shareholders' equity: |
|
|
- Common stock
|
30,212
|
30,999
|
- Retained earnings
|
15,655
|
11,284
|
![]() Total
shareholders' equity
|
45,867
|
42,283
|
![]() Total
liabilities and shareholders' equity
|
$ 54,531
|
$ 46,256
|
|
Diff.
|
0
|
0
|
Mackie Designs Inc. 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 in the U.S. and worldwide.
NOTE: Mackie is a registered trademark or trademark of Mackie Designs Inc. in the United States and/or 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 8K dated April 12, 1996 and filed with the SEC.
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