Exhibit 99.1
Boston Acoustics Announces First Quarter Results
PEABODY, Mass.--(BUSINESS WIRE)--Aug. 5, 2003--Boston Acoustics,
Inc. (NASDAQ:BOSA) today announced its financial results for the first
quarter of the 2004 fiscal year which ended on June 28, 2003.
Net sales for the quarter decreased approximately 31%, to $12.6
million from $18.3 million for the same period a year ago. Net income
decreased to approximately $216,000 from approximately $277,000, and
diluted earnings per share decreased to $.05 per share compared to
$.06 per share for the same period a year ago.
The reduction in net sales is the result of the prolonged
difficult economic environment and its significant impact on both of
the Company's business segments. While net sales of the Company's Core
products decreased approximately 17% compared to a year ago, net sales
of the OEM/ Multimedia segment were down 64%. The significant decrease
in the OEM/Multimedia segment was anticipated and, as a result,
incorporated in the Company's fiscal 2004 business plan.
President and CEO Moses Gabbay stated, "Despite the decrease in
sales, the Company realized a profit and continues to focus on
improving margins by maintaining higher efficiencies through
streamlining processes and monitoring operating expenses closely.
Operating expenses, although higher as a percentage of sales, did in
fact decrease in absolute dollars. This cost reduction will allow the
Company to continue its investment in new market opportunities while
increasing margins when worldwide economies and resulting consumer
confidence improve to higher levels."
Mr. Gabbay continued, "As the first step in a strategic initiative
to assess and refine our sales and marketing organizations and to
ensure the future growth in the car audio unit of our business, the
Company announced the appointment of Dominick Aquilini, National Sales
Manager, Aftermarket Car Audio. This addition enables our Home/Custom
business unit to maximize the sales of Boston Home products while Mr.
Aquilini focuses on Aftermarket Car Audio. Our balance sheet is
strong, and we are prepared to capture the next upsurge in the
market."
Three Months Ended
June 28, 2003 June 29, 2002
Net Sales $ 12,597,197 $ 18,257,277
Cost of Goods Sold 8,017,458 12,448,444
Gross Profit 4,579,739 5,808,833
Selling and Marketing Expenses 2,141,390 2,626,924
General and Administrative Expenses 1,111,307 1,231,520
Engineering and Development Expenses 1,119,561 1,554,583
Total Operating Expenses 4,372,258 5,413,027
Income from Operations 207,481 395,806
Interest Income, net 15,106 11,972
Other Income 92,200 18,831
Income before Provision for Income
Taxes 314,787 426,609
Provision for Income Taxes 99,000 150,000
Net Income $ 215,787 $ 276,609
Basic Earnings per Share $ .05 $ .06
Diluted Earnings per Share $ .05 $ .06
Weighted Average Shares Outstanding
Basic 4,400,276 4,595,595
Diluted 4,400,372 4,673,688
Consolidated Balance Sheets
June 28, 2003 March 29, 2003
Assets
Current Assets
Cash and cash equivalents $ 6,575,370 $ 6,941,222
Accounts receivable, net 8,030,270 6,582,033
Inventories 10,087,821 11,919,039
Deferred income taxes 3,577,000 3,577,000
Prepaid income taxes 1,449,000 1,449,000
Prepaid expenses and other current
assets 984,020 1,009,369
Total current assets 30,703,481 31,477,663
Property and Equipment, net 11,955,916 12,190,549
Other Assets, net 995,594 996,172
Total assets $ 43,654,991 $ 44,664,384
Liabilities and Shareholders' Equity
Current Liabilities
Accounts payable $ 4,923,524 $ 5,630,246
Accrued payroll & related expenses 596,486 602,589
Dividends payable 373,286 374,136
Other accrued expenses 1,925,163 2,079,095
Total current liabilities 7,818,459 8,686,066
Minority Interest in Joint Venture 24,015 37,344
Shareholders' Equity 35,812,517 35,940,974
Total liabilities and shareholders'
equity $ 43,654,991 $ 44,664,384
Boston Acoustics, Inc. provides audio solutions for home
entertainment, automobiles and personal computers. Founded in 1979,
Boston Acoustics is located in Peabody, Massachusetts.
Certain statements in this press release contain certain
forward-looking statements concerning Boston Acoustics' operations,
economic performance and financial condition. Such forward-looking
statements are based on a number of assumptions and involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of Boston Acoustics to be
materially different from any future results, performance or
achievements expressed or implied by such forward-looking statements.
Factors that could cause such differences include, but are not limited
to, those discussed in the Company's Annual Report on Form 10-K for
the fiscal year ended March 29, 2003. The words "believe," "expect,"
"anticipate," "intend," and "plan" and similar expressions identify
forward-looking statements, which speak only as of the date the
statement was made.
CONTACT: Boston Acoustics, Inc.
Moses Gabbay, 978-538-5000
Moses@bostona.com
or
Boston Acoustics, Inc.
Debby Ricker-Rosato, 978-538-5000
DRicker@bostona.com