Mackie Designs Inc. Announces First Quarter Results
April 26, 2000 – Woodinville, Wash. – Mackie Designs Inc. (Nasdaq: MKIE) today announced revenues and earnings for the quarter ended March 31, 2000. Revenues for the first quarter were $45 million, compared with $32 million for the corresponding quarter in 1999, an increase of 41%. Net income for the quarter was $2.4 million, or $0.20 per share, compared with a loss of $1.4 million, or $(0.11) per share, in the first quarter of 1999, a turn-around of $3.8 million over the prior year.
"We are excited to report both strong top and bottom line growth", stated Jamie Engen, Chief Operating Officer. "I am very pleased with the $0.20 earnings per share, which is the best quarterly result ever for our Company. We also set a revenue record for the fourth consecutive quarter and did so without new product introductions. I look forward to continued growth as we plan numerous product introductions over the balance of 2000. I also look forward to the integration of the activities of Eastern Acoustic Works into the Mackie family."
Company Chairman, Greg Mackie, commented, "It is great to see growth in our current products continue. We have many new products ready to enter the marketplace which should accentuate the growth we have experienced. Watching our costs has begun to pay off for us and I am encouraged that we can continue this positive trend. Our goal is to be one of the leaders in the professional audio industry. I believe that through a combination of focused effort, timely and appropriate product releases and strategic acquisitions we can achieve this goal."
Forward-Looking Statements
This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: changes in demand for the Company's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, constraints on supplies of critical components, excess or shortage of production capacity, difficulties encountered in the integration of acquired businesses and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. 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.
MACKIE DESIGNS INC. STATEMENTS OF OPERATIONS (Unaudited)
| |
Three months ended
March 31, |
|
2000 |
|
1999 |
|
|
|
|
| Net sales |
$ 44,539,075 |
|
$ 31,624,211 |
| Cost of goods sold |
28,226,003 |
|
20,755,006 |
| Gross profit |
16,313,072 |
|
10,869,205 |
|
|
|
|
| Operating expenses: |
|
|
|
| Selling, general and administrative |
9,960,405 |
|
9,904,139 |
| Research and development |
1,939,088 |
|
1,828,008 |
| Total operating expenses |
11,899,493 |
|
11,732,147 |
| Operating income (loss) |
4,413,579 |
|
(862,942) |
|
|
|
|
| Interest income |
195,976 |
|
176,534 |
| Interest expense |
(646,433) |
|
(853,632) |
| Other income (expense) |
19,205 |
|
(104,764) |
| Income (loss) before income taxes |
3,982,327 |
|
(1,644,804) |
|
|
|
|
| Income taxes (benefit) |
1,563,774 |
|
(275,608) |
|
|
|
|
| Net income (loss) |
$ 2,418,553 |
|
$ (1,369,196) |
|
|
|
|
|
|
|
|
| Basic net income (loss) per share |
$ 0.20 |
|
$ (0.11) |
|
|
|
|
| Diluted net income (loss) per share |
$ 0.20 |
|
$ (0.11) |
|
|
|
|
| Basic weighted shares outstanding |
12,109,771 |
|
12,328,754 |
|
|
|
|
| Diluted weighted shares outstanding |
12,337,707 |
|
12,328,754 |
About Mackie
Mackie Designs Inc. is known worldwide as a leading manufacturer and marketer of high-quality, affordable professional audio systems. Mackie products can be found in professional and project recording studios, video and broadcast suites, post production facilities, sound reinforcement applications including churches and nightclubs, retail locations and on major musical tours. Mackie Designs Inc. products are marketed by 54 distributors to more than 100 countries around the world.
"Mackie." is a registered trademark of Mackie Designs Inc. in the United States and other countries.
For more information please contact: Mackie Designs Inc. – 16220 Wood-Red Road N.E. – Woodinville, WA 98072 – Phone: 425-487-4333 – Fax: 425-487-4337 – Internet: www.mackiedesigns.com
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