D&M Holdings reports losses

Grabbing a few big gulps can sometimes fill you up quickly, but it can also lead to a little indigestion. This proved to be the case for D&M Holdings, which filed results for the first half of its fiscal year, ending September 30, 2003, and its financial forecast for the fiscal year ending March 31, 2004 with the Tokyo Stock Exchange.

D&M Holdings has been acquiring “premium” audio, video, and home networking brands over the last couple of years, and is the parent company to Denon, Marantz Japan, McIntosh Laboratory, and Digital Networks North America, which consists of the ReplayTV, Rio, and Escient brands.

For the first half ended September 30, 2003, D&M Holdings reported consolidated revenue of $358 million USD (Â¥:39.9 billion), EBITDA (earnings before interest, taxes, depreciation, and amortization) of $10.1 million (Â¥1.1 billion), an operating loss of $845,000 (Â¥92 million), a net loss of $2.3 million (Â¥247 milion) and fully diluted loss per share of around 2¢ (Â¥2.74). These numbers are in contrast to consolidated revenue of $369 million (Â¥40.2 billion), EBITDA of $18.3 million (Â¥2.0 billion) and operating profit of $10.1 million (Â¥1.1 billion) for the six-month period ending September 30, 2002. D&M notes that results for the prior year’s six-month period are pro forma for comparison purposes due to the acquisition of Marantz in May 2002.

Revenue for the last six months fell short of the company’s May projections by $34.9 million (Â¥3.8 billion), which D&M says is a result of “soft consumer demand in the premium A/V industry.” The company says the shortfall in revenue was largely attributable to Denon and Marantz.

Despite this decline in revenue during the first half of its fiscal year, D&M reports that its “core A/V business” posted an increase in operating profit of around $1.1 million (Â¥125 million) compared to a year ago as a result of “post-merger integration efforts.” For the first half ending September 30, 2003, revenue for the core A/V business was $321 million (Â¥34.9 billion) and operating profit was around $13 million (Â¥1.4 billion). The company adds that the Digital Networks North America group reported an operating loss in the first half due to start-up costs from re-launching ReplayTV, Rio, and Escient as new businesses.

But D&M is still optimistic: for the fiscal year ending March 31, 2004, the company says it will stick to its forecast announced on November 7, 2003 of consolidated revenue of $841 million (Â¥91.6 billion), EBITDA of $50.5 million (Â¥5.5 billion), operating profit of $30.3 million (Â¥3.3 billion), and net income of $15 million (Â¥1.65 billion). Full year revenue forecast is still $62.5 million (Â¥6.8 billion) lower than the May 2003 projection, “reflecting the current market conditions in the premium A/V industry segment.”

The company has taken several recent steps to improve its bottom line, including integrating McIntosh into its development and purchasing platforms and making preparations to establish a global professional sales organization to enhance the Denon and Marantz professional/semi-professional business. D&M says it has also reached an agreement to establish a core production base in Guandong, China to yield cost savings and has taken steps to expand procurement activities in Hong Kong and China, while spinning off its Shirakawa plant in Japan into a subsidiary called D&M Manufacturing.

Source: Stereophile

 

Product Review

Simple and reliable, Apple's AirPods are among the best fully wireless earbuds

Apple’s AirPods wireless headphones have dominated the market essentially since they hit stores in December 2016. Though not without some faults, they cracked the connectivity code to rank among the best fully wireless earbuds you can…
Movies & TV

MoviePass returns to unlimited movies plan, but with plenty of restrictions

Troubled subscription-based movie service MoviePass is making headlines on a daily basis lately, and not in a good way. Here's a timeline of events for the company once described as Netflix for movie theaters.
Gaming

Your PlayStation 4 game library isn't complete without these games

Looking for the best PS4 games out there? Out of the massive crop of titles available, we selected the best you should buy. No matter what your genre of choice may be, there's something here for you.
Movies & TV

The best shows on Netflix right now (March 2019)

Looking for a new show to binge? Lucky for you, we've curated a list of the best shows on Netflix, whether you're a fan of outlandish anime, dramatic period pieces, or shows that leave you questioning what lies beyond.
Home Theater

Here are some common AirPods problems, and how to fix them

Apple’s AirPods are among the best fully wireless earbuds we’ve seen, but they’re not perfect. If you’re having trouble, take a look at our guide to the most common problems and what you can do to fix them.
Home Theater

ESPN Plus scores the exclusive rights to UFC Pay-Per-View events

If MMA is your game, then ESPN Plus is now a very important player. The Disney-owned service locked up the exclusive rights to UFC Pay-Per-View events, a deal that will last through 2025 in the United States.
Home Theater

There isn’t a single good reason to buy Apple’s new AirPods

After nearly a three-year wait, Apple has finally announced a new version of its popular true wireless headphones, the AirPods. We had high hopes for vast improvements, but that's not what we got.
Home Theater

Dish TV customers can access up to 13 NCAA March Madness games in 4K

If you're a basketball fan looking to get your fix of NCAA Championship action in 4K, Dish TV will be airing up to 13 of the tournament games in the ultra high-def format, starting on Tuesday.
Home Theater

Cheer for your favorite NCAA team and Xfinity will respond with matching lights

Screaming at your favorite team just became a lot more rewarding thanks to Comcast's Xfinity voice remote and some special NCAA commands that set your smart lightbulbs to your favorite team's colors.
Deals

Amazon slashes prices on UE Boom and MegaBoom 3 Bluetooth speakers

With just the right combination of great sound, a rugged design, and an overall sleek aesthetic, the UE MegaBoom 3 is our favorite Bluetooth speaker. And Amazon is offering a rare discount on it right now.
Movies & TV

Stranger Things season 3 is coming! Here’s everything we know so far

With a sophomore season as strong as its first, Stranger Things is now moving on to season 3. Here's everything we've learned so far about the Netflix series' upcoming third season, premiering in July 2019.
Home Theater

Here’s what’s new on HBO and what’s leaving in April 2019

Whether you're a cable lifer or a staunch cord cutter, there's never been a better time to get down with premium TV. April 2019 brings Game of Thrones season 8, BlacKkKlansman, and Crazy Rich Asians to HBO.
Home Theater

Tipping point? Streaming subscribers outnumbered cable in 2018 for first time

2018 was a very good year for the entertainment business as a whole, but it was especially good for streaming companies like Netflix and Amazon, says a new report by the Motion Picture Association of America.
Home Theater

TCL drops the price of its 75-inch 6-Series 4K Roku TV to $1,500

March is a great time for TV deals, and we've got a whopper: TCL has taken $300 off the price of its superb 75-inch 6-Series 4K HDR Roku TV, making it $1,500. That's the lowest price ever on this affordable TV.