Computers

Hauppauge Digital Reports Fiscal 2010 Third Quarter and Nine-Month Results

  2010 SEP 2 - (VerticalNews.com) -- Hauppauge Digital Inc. (NASDAQ: HAUP), a leading developer of analog and digital TV receiver products for the personal computer market, reported financial results for the third fiscal quarter and nine-month period ended June 30, 2010. THIRD QUARTER RESULTS Net sales were $13.6 million for the third quarter of fiscal 2010, an increase of approximately 4.03% from the $13.1 million reported for the previous year's third fiscal quarter.

  The Company recorded net income of $915,216 for the third quarter of fiscal 2010 compared to a net loss of $1,887,382 for the third quarter of fiscal 2009. The results for the third quarter of fiscal 2010 reflect a reduction in accrued expenses fees of about $2.2 million for settlements and changes in estimates. Net income per share for the third quarter of fiscal 2010 was $0.09 on a basic and diluted basis, compared to a net loss per share of $0.19 on a basic and diluted basis for the third quarter of fiscal 2009. NINE-MONTH RESULTS Net sales were $45.3 million for the nine months ended June 30, 2010, an increase of approximately 5.17% from the $43.1 million reported for the nine months ended June 30, 2009.

  The Company incurred a net loss of $322,208 for the nine months ended June 30, 2010 compared to a net loss of $5,591,765 for the nine months ended June 30, 2009. The results for the nine months ended June 30, 2010 reflect a reduction in accrued expenses fees of about $2.2 million for settlements and changes in estimates. Net loss per share for the nine months ended June 30, 2010 was $0.03 on a basic and diluted basis, compared to a net loss per share of $0.56 on a basic and diluted basis for the nine months ended June 30, 2009. DISCUSSION OF RESULTS Ken Plotkin, Hauppauge's Chief Executive Officer stated, "While TV tuner sales to the PC OEM market continue to be soft, we continue to see sales growth in the PC retail market both in the U.S. and in Europe. Our PCTV product line, acquired in 2009 from Avid Technology, Inc., has established itself as our premium TV tuner product line and has helped drive an improvement in gross profit margins. Excluding the change in estimates, our gross profit margins have increased from 20.4% for the first nine months of fiscal 2009 to 28.3% for the first nine months of our 2010 fiscal year.

  During our fiscal third quarter we introduced the WinTV Extend software, which brings live TV to the iPhone and iPad and other portable devices, plus started to make shipments of our MediaMVP-HD digital media player. In addition, we have recently introduced new software which allows our HD PVR high definition TV recorder to be used in Windows Media Center. Windows 7 Media Center has been installed in over 50 million PCs to date, and we believe this new software will help expand the sales of the HD PVR and other members of the HD PVR family.

  Though sales in Europe continue to grow, we have been negatively affected by the drop in value of the euro. Euro denominated sales currently account for approximately 45% of our total worldwide sales, and the drop in the value of the euro from November 2009 to the present has impacted our sales and profitability." ABOUT HAUPPAUGE DIGITAL Hauppauge Digital Inc. is a leading developer of analog and digital TV receiver products for the personal computer market. Through its Hauppauge Computer Works, Inc. and Hauppauge Digital Europe SARL subsidiaries, the Company designs and develops analog and digital TV receivers that allow PC users to watch television on their PC screen in a resizable window and enable the recording of TV shows to a hard disk, digital video editing, video conferencing, receiving of digital TV transmissions, and the display of digital media stored on a computer to a TV set via a home network. The Company is headquartered in Hauppauge, New York, with administrative offices in Luxembourg, Ireland and Singapore, sales offices in Germany, London, Paris, The Netherlands, Sweden, Italy, Spain, Singapore, Taiwan, and California and research and development centers in Hauppauge, New York, Taipei, Taiwan and Braunschweig, Germany. The Company's Internet web site can be found at http://www.hauppauge.com.

  Keywords: Asia, Computer Peripherals, Computers, Hauppauge Digital Inc., Singapore, Software, Taiwan, Technology.

  This article was prepared by VerticalNews Computers editors from staff and other reports. Copyright 2010, VerticalNews Computers via VerticalNews.com.