Global-Tech Appliances Inc. announced its financial results for the fiscal year and fourth quarter ended March 31, 2004.
Net sales for the fiscal year ended March 31, 2004 were U.S. $66.9 million, compared to $75.5 million for the 2003 fiscal year. Net loss for fiscal year 2004 was $1.6 million, or $0.13 per share, compared to a net profit of $5.3 million, or $0.43 per share, for the previous year.
Net sales for the fourth quarter of 2004 were $15.4 million, up 12 percent from $13.8 million in the fourth quarter of 2003. Net loss for the fourth quarter of fiscal 2004 was $0.9 million, or $0.07 per share, compared to a net loss of $0.1 million, or $0.01 per share, in the 2003 period.
John C.K. Sham, president and CEO, said the results reflect the company's de-emphasis on small electrical appliances and a new effort focused on a line of flat panel display (FPD) products. "The net loss in fiscal 2004 was primarily attributable to expenses associated with the research and development of FPD products and organic light emitting diode (OLED) displays. In fiscal 2004, we spent over $2.0 million to develop our high-definition flat panel television programs and an additional $2.1 million to expand our OLED program, and also made significant investments in development and production equipment."
Mr. Sham continued, "The company is making good progress in implementing its previously announced strategic initiatives intended to de-emphasize unprofitable product categories with lower profit margins that merely maintain sales volume and expand into more technologically advanced product categories that we believe should position the company for greater growth and a return to profitability."
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