Global-Tech Appliances Inc., a holding company whose subsidiaries make a wide range of small household appliances, announced its net sales and earnings for the third quarter of fiscal 2004 ended Dec. 31, 2003.
Net sales for the third quarter of fiscal 2004 were U.S. $16.9 million, up 2.1 percent from $16.5 million for the third quarter of fiscal 2003. Net loss for the third quarter of fiscal 2004 was $0.8 million, or $0.07 per share, compared to a net income of $0.8 million, or $0.06 per share, in the prior corresponding fiscal period. Results for the third quarter of fiscal 2003 included a net loss of $0.2 million from discontinued operations.
Net sales for the 9 months ended Dec. 31, 2003 were $51.5 million, compared to $61.4 million for the prior corresponding 9-month period. Net loss for the first 9 months of fiscal 2004 was $0.7 million, or $0.06 per share, compared to a net income of $5.3 million, or $0.44 per share, in the first 9 months of fiscal 2003, which included losses from discontinued operations of $0.8 million.
"We believe our core business has begun to stabilize and it continued to generate positive cash flow in the third quarter of fiscal 2004," John C.K. Sham, president and CEO, said in a statement. "Our net loss in the third fiscal quarter was primarily attributable to the additional expenditures we incurred to accelerate the development and introduction of display-oriented products. Expenditures for our display-oriented product and organic light emitting diode (OLED) display programs in the first 9 months of fiscal 2004 were approximately $2.8 million, compared to approximately $1.0 million in the prior corresponding period."
Mr. Sham also announced that two models of liquid crystal display televisions (LCD TVs) have been developed and tooled, and that the company has recently began submitting product samples to prospective customers in both the North American and European markets for evaluation. Other models of flat-panel display televisions, including plasma and high-definition LCD TVs, as well as other display-related products that the company expects to introduce in the near future, are also currently under development.
"The initial response from potential customers for our display-oriented products has exceeded our expectations," Mr. Sham said. "We are also encouraged by the status of discussions with potential customers, which we anticipate could lead to their placing of product orders for shipment in the coming months. Moreover, we believe that our experience in supporting branded customers will be an invaluable asset in our efforts to sell and market display-oriented products worldwide. We are committed to achieving a successful transformation of a portion of our business to the production of higher-value, technology-oriented products and continue to believe that these plans will come to full fruition."
Global-Tech is a holding company whose subsidiaries currently design, manufacture, and market small household appliances in four primary product categories -- kitchen appliances, garment care products, travel products and accessories, and floor care products. The products are marketed by customers under brand names such as Black & Decker(R), DeLonghi(R), Dirt Devil(R), Eureka(R), GE(R), Hamilton Beach(R), Kenwood(R), Proctor-Silex(R), Sanyo(R), Sunbeam(R), and West Bend(R).
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