Mahwah, NJ–D&M Holdings recently filed with the Tokyo Stock Exchange
results through the third quarter (April 1-December 31, 2006) for the 2006
fiscal year ending March 31, 2007. Year-over-year operating profit during
the first nine months jumped 103 percent, achieving the highest
nine-month operating performance in the company’s history. The company also raised its previous net income forecast for consolidated business results
for the full 2006 fiscal year.
The company’s consolidated revenue for the first nine months of the fiscal year ended December 31, 2006 totaled $584 million. Consolidated revenue was 6.5 percent higher compared to the same period of the previous year despite the absence of revenue contributions from Rio, which was discontinued.
For the nine-month period ended December 31, 2006, the company
reported an operating profit totaled $36 million, a 103-percent increase from
the year-ago period. Profitability greatly improved compared to a year ago following sales growth from new distribution channels and market share gains in AV receivers. Operations also benefited from full year results from Boston Acoustics and the exit from the Rio business.
The company’s revenue for the Premium AV segment for the first nine
months of the fiscal year ended December 31, 2006, was approximately $570
million, 11 percent higher than results from the year-ago period. The company’s operating profit for the Premium AV segment for the nine-month
period was approximately $36 million, 47 percent higher than the year-ago
period.
The FY2005 nine-month period includes only four months of operating results from Boston Acoustics.
The company showed strength in North America as it continued to expand distribution channels in its core AV markets. In Europe, demand remained strong, particularly in emerging markets.
The company confirmed its latest consolidated operating profit and ordinary profit forecast for FY2006 made November 16, 2006. Due to an extraordinary gain from the sale of the company’s stock holding in Mediabolic, a digital network software start-up, the company’s net income forecast for FY2006 has been increased to approximately $20.5 million.
D&M Holdings closed the acquisition of Philips Sound Solutions (renamed D&M Premium Sound Solutions) January 1, 2007. The fourth-quarter impact of D&M Premium Sound Solutions is not yet forecasted due to the GAAP required evaluation of its opening balance sheet and fair value adjustment for intangible assets.
“We are pleased with our overall results through nine months and were very satisfied with the market reactions to our products during the holiday season, ” said Eric C. Evans, chairman of D&M Holdings. “We had a great third quarter, and we continue to focus on ways to improve our gross and operating margins. The acquisition of our new D&M Premium Sound Solutions company is proceeding smoothly and will favorably impact our fourth-quarter results beyond our forecast,” he said.
For more information, www.dm-holdings.com.
