Exhibit 99.1
Boston Acoustics Announces Second Quarter Results
PEABODY, Mass.--(BUSINESS WIRE)--Nov. 5, 2004--Boston Acoustics,
Inc. (NASDAQ:BOSA) today announced its financial results for the
second quarter of the 2005 fiscal year, which ended September 25,
2004.
Net sales for the quarter decreased approximately 7%, to $12.3
million from $13.1 million for the same period a year ago. However,
net income increased to approximately $240,000 from approximately
$137,000, and diluted earnings per share increased to $.06 per share
compared to $.03 per share for the same period a year ago.
During the quarter, the Company, in partnership with Visteon
Corporation, ramped up its shipments of premium audio systems to the
Chrysler Group for the Dodge Magnum and Chrysler 300 vehicles, in
addition, the initial shipment of audio systems for Chrysler's 2005
Jeep Grand Cherokee family of vehicles commenced in the second
quarter.
For the six months ended September 25, 2004, net sales decreased
approximately 3% to $24.9 million from $25.7 million in the same
period a year ago. Net income was approximately $0.7 million compared
to $0.4 million and diluted earnings per share were $.17 per share
compared to $.08 per share for the six months ended September 27,
2003.
President and CEO Moses Gabbay stated, "The overall sales decrease
of approximately 7% is attributed to the reduction of business in two
previously announced areas: the strategic phase out of our
OEM/Multimedia business and the reduced purchases of a major customer.
On a positive note, the impact of these specific losses of revenue for
the second quarter was significantly minimized through continued
double digit growth from our international sales and our ramping OEM
automotive business."
Gabbay added, "Our commitment to address new channel
opportunities, and to continue focus on operational efficiencies
produced overall gross margin and net income improvements as compared
to the corresponding periods a year ago. Our balance sheet remains
strong, reflecting our efficient use of resources. In short, the
continued employment of this coordinated business approach across all
facets of our organization will enable Boston to achieve future sales
growth."
Boston Acoustics, Inc. provides audio solutions for home
entertainment, automobiles and personal computers. Founded in 1979,
Boston Acoustics is located in Peabody, Massachusetts.
Three Months Ended
Sept. 25, 2004 Sept. 27, 2003
Net Sales $ 12,250,511 $ 13,110,912
Cost of Goods Sold 7,170,807 8,269,544
Gross Profit 5,079,704 4,841,368
Selling and Marketing Expenses 2,512,979 2,300,302
General and Administrative Expenses 1,083,468 1,090,687
Engineering and Development Expenses 1,080,046 1,094,608
Total Operating Expenses 4,676,493 4,485,597
Income from Operations 403,211 355,771
Interest Income, net 9,296 32,898
Other Income (Expense) (24,298) (93,937)
Income before provision for income
taxes 388,209 294,732
Provision for Income Taxes 148,000 158,000
Net Income $ 240,209 $ 136,732
Basic Earnings per Share $ .06 $ .03
Diluted Earnings per Share $ .06 $ .03
Weighted Average Shares Outstanding
Basic 4,166,845 4,330,476
Diluted 4,208,339 4,375,892
Six Months Ended
Sept. 25, 2004 Sept. 27, 2003
Net Sales $ 24,870,462 $ 25,708,109
Cost of Goods Sold 14,302,765 16,287,002
Gross Profit 10,567,697 9,421,107
Selling and Marketing Expenses 5,132,617 4,441,692
General and Administrative Expenses 2,113,640 2,201,994
Engineering and Development Expenses 2,286,700 2,214,169
Total Operating Expenses 9,532,957 8,857,855
Income from Operations 1,034,740 563,252
Interest Income, net 15,197 48,004
Other Income (Expense) 21,999 (1,737)
Income before provision for income
taxes 1,071,936 609,519
Provision for Income Taxes 371,000 257,000
Net Income $ 700,936 $ 352,519
Basic Earnings per Share $ .17 $ .08
Diluted Earnings per Share $ .17 $ .08
Weighted Average Shares Outstanding
Basic 4,166,845 4,366,915
Diluted 4,199,574 4,383,710
Consolidated Balance Sheets
Sept. 25, 2004 March 27, 2004
Assets
Current Assets
Cash and cash equivalents $ 7,845,192 $ 7,552,054
Accounts receivable, net 8,411,901 8,202,044
Inventories 12,305,735 12,240,838
Deferred income taxes 2,492,000 2,492,000
Prepaid income taxes 471,000 480,000
Prepaid expenses and other current
assets 978,683 956,142
Total current assets 32,504,511 31,923,078
Property and Equipment, net 10,412,089 10,874,343
Other Assets, net 1,189,828 1,160,710
Total assets $ 44,106,428 $ 43,958,131
Liabilities and Stockholders' Equity
Current Liabilities
Accounts payable $ 7,839,069 $ 7,322,535
Accrued payroll & related expenses 671,297 523,234
Dividends payable 354,182 354,182
Current maturity of line of credit 82,367 309,394
Other accrued expenses 1,449,028 1,730,873
Total current liabilities 10,395,943 10,240,218
Stockholders' Equity 33,710,485 33,717,913
Total liabilities and stockholders'
equity $ 44,106,428 $ 43,958,131
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 27, 2004. 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
Debby Ricker-Rosato, 978-538-5000
DRicker@bostona.com