Global-Tech Appliances Inc. announced its net sales for the third quarter of fiscal 2006 increased 146 percent to U.S. $20.5 million, compared to $8.3 million for the third quarter of fiscal 2005. Net loss for the third quarter of fiscal 2006 was $3.0 million, or $0.24 per share, compared to a net loss of $4.6 million, or $0.38 per share, in the prior third quarter.
Net sales for the 9 months ended Dec. 31, 2005 were $58.1 million, up 96 percent compared to $29.7 million for the prior corresponding 9-month period. Net loss for the first 9 months of fiscal 2006 was $10.0 million, or $0.82 per share, compared to a net loss of $11.1 million, or $0.91 per share, in the first 9 months of fiscal 2005.
Included in the loss were impairment charges of approximately $2.2 million, which relate primarily to the company's organic light emitting diode (OLED) and in part to its LCD TV programs. The company also anticipates that further impairment charges of approximately $1.5 million related to its LCD TV program will be reflected in the fourth quarter of fiscal 2006.
John C.K. Sham, president and CEO, said: "While our sales performance in floor care products improved considerably over the prior year, our margins continue to be adversely impacted by the competitive market environment. We are, however, pleased to report that net sales of our compact camera modules (CCMs) have reached approximately $2 million in the third quarter of fiscal 2006, a significant increase compared to approximately $300,000 in the previous fiscal quarter. These CCMs are used primarily in cellular phones and we expect this business to continue to grow rapidly over the next few months."
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