Sonicblue revenue up 80 percent
The consumer-electronics maker meets analysts' earnings expectations, reporting that second-quarter revenue increased 80 percent compared with the same quarter a year ago.
The Santa Clara, Calif.-based company announced a net loss of $23.5 million, or 24 cents a share, on revenue of $61.7 million for the second quarter, which ended June 30. In the same period a year ago, Sonicblue reported a net loss of $312.5 million, or a loss of $3.88 a share.
The company's revenue was up about 80 percent from the same period a year ago, when it reported $29.5 million in revenue.
Excluding charges, Sonicblue had a loss of $5.1 million, or 5 cents a share. Analysts were expecting a pro forma loss of 5 cents a share, according to a survey of analysts from First Call. Charges included costs from restructuring and impairment charges, and amortization of goodwill, among others.
Sonicblue Chairman Ken Potashner attributed the company's revenue jump to strong growth in all its product lines.
"The expansion of our product offerings, distribution channels and sales in the second quarter, has laid a foundation for the second half of the year," Potashner said in a statement.
The second quarter saw the launch of its second-generation ReplayTV digital video recorder. The ReplayTV recorders enable commercial skipping and the ability to distribute TV shows over the Internet to other ReplayTV recorder owners. Entertainment companies have filed a lawsuit against the company over its features, which the entertainment companies claim infringe on copyright laws.
Potashner said there was nothing significant to report concerning the lawsuit.
The company spent $37 million primarily for working capital needs and has about $48 million in cash. Potashner added that the company is committed to meeting analysts' consensus expectations for the current and fourth quarter. Analysts are expecting a loss of one cent per share in the current quarter and a profit of a 1 cent per share in the fourth quarter, Potashner said.
During the second quarter, the company received $62.25 million through the sale of warrants totaling $75 million, which the company said it would use toward working capital and general corporate purposes.
The largest contributor to revenue was the Go-Video line of VCRs, according to interim CFO Marcus Smith. However, price declines were "severe" in the second quarter but there was strong demand for Go-Video products and the company does not expect further price erosion.
Sonicblue expanded a relationship with LG Electronics in the second quarter that will increase manufacturing volumes of Sonicblue's Go-Video dual-deck DVD/VCR products to meet demand.