Home Director, Inc. (Livermore, CA, U.S.), which manufactures, sells, and installs home networking products that interconnect security systems, audio systems, video services, utilities, and personal computers, has reported its third-quarter results for the period ending Sept. 30.
The results show a significant reduction in loss as compared to the comparable quarter of 2002. The company reported a net loss for the quarter of $438,000, as compared to $2.894 million in the prior year, a decrease of approximately 85 percent. The net loss for the third quarter of 2002 included other expense, net of $2.12 million, consisting primarily of costs and expenses associated with the convertible notes that were retired on conversion in December 2002. Home Director, Inc. said its continuing cost-reduction programs contributed to the decline.
Total costs and expenses (before other expense, net) of $2.743 million were down 20 percent from $3.423 million in the third quarter of 2002.
Revenues for the quarter were $2.348 million compared to $2.656 million in the third quarter of 2002. For the nine months, revenues were $7.309 million compared to $8.004 million in the prior year. The company attributed the revenue decline primarily to reduced hardware sales, which were offset in part by increased integration revenues. The decline in hardware sales reflects the effects of several factors, including the Company's strategic decisions to concentrate on cost reduction measures while re-focusing its marketing efforts on the integration sector and the sale of hardware primarily through the still-developing Sears Connected Home program, as well as increasing price competition.
"This quarter we entered what we hope will be the final stages of our turnaround by continuing to cut expenses while [we] are gearing up for expected revenue growth next year," said Don Witmer, Home Director chairman and CEO, in a press release about the earnings. "[This is just] as we begin to feel the impact of the Sears Connected Home program and the additional builder contracts we have added in the past several months."
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