Emerson Radio Corp.   Reports Fiscal 2012 First Quarter Results

Marketwired

MOONACHIE, NJ--(Marketwire -08/15/11)- Emerson Radio Corp.   (AMEX: MSN - News) today reported financial results for its first quarter ended June 30, 2011.

Net revenues for the first quarter of fiscal 2012 were $51.5 million, a decrease of $15.7 million, or 23.3%, from the first quarter of fiscal 2011 net revenues of $67.2 million.

Operating income for the first quarter of fiscal 2012 was $3.9 million, a decrease of $3.5 million, or 48.0%, from the first quarter of fiscal 2011 operating income of $7.4 million.   The decline in year-over-year operating income was driven by the lower year-over-year net sales as well as higher year-over-year landed product costs as a percent of selling price, partially offset by lower year-over-year selling, general and administrative expenses.

Net income for the first quarter of fiscal 2012 was $3.3 million, a decrease of $2.6 million, or 43.2%, from the first quarter of fiscal 2011 net income of $5.9 million, and was aided by a realized gain of $0.8 million recorded in the first quarter of fiscal 2012 on the sale of a marketable security.   Diluted earnings per share for the first quarter of fiscal 2012 were $0.12 as compared to $.22 for the first quarter of fiscal 2011, a decrease of $0.10, or 45.5%.

Duncan Hon, Deputy Chief Executive Officer of Emerson Radio, commented, "As expected, in the first quarter of fiscal 2012, we faced a challenging and highly competitive sales environment, as well as higher product costs due to the continuing appreciation of the renminbi and increases in costs of production in China.   These factors led to the year-over-year declines in net revenues and net income for the first quarter.   Looking forward, we see these factors continuing throughout the fiscal year.   As always, we will remain focused on keeping our costs as low as possible and providing the consumer with the highest level of value in the marketplace on the products we offer."

About Emerson Radio Corp.
Emerson Radio Corporation (AMEX: MSN - News), founded in 1948, is headquartered in Moonachie, N.J.   The Company designs, sources, imports and markets a variety of houseware and consumer electronic products, and licenses its trademarks to others on a worldwide basis for a variety of products.   For more information, please visit Emerson Radio's Web site at www.emersonradio.com.

Forward-Looking Statements
This release contains "forward-looking statements" made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.   Forward-looking statements reflect management's current knowledge, assumptions, judgment and expectations regarding future performance or events.   Although management believes that the expectations reflected in such statements are reasonable, they give no assurance that such expectations will prove to be correct and you should be aware that actual results could differ materially from those contained in the forward-looking statements.   Forward-looking statements are subject to a number of risks and uncertainties, including the risk factors detailed in the Company's reports as filed with the Securities and Exchange Commission.   The Company assumes no obligation to update the information contained in this news release.

  EMERSON RADIO CORP.   AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except earnings per share data) Three Months Ended June 30, 2011 2010 --------- --------- Net revenues: Net revenues $ 51,524 $ 67,155 Costs and expenses: Cost of sales 45,595 57,523 Other operating costs and expenses 387 299 Selling, general and administrative expenses 1,689 1,929 --------- --------- 47,671 59,751 --------- --------- Operating income 3,853 7,404 Other income (expense): Interest income, net 31 10 Realized gain on sale of marketable security 828 - --------- --------- Income before income taxes 4,712 7,414 Provision for income taxes 1,375 1,535 --------- --------- Net income 3,337 5,879 ========= ========= Net income per share: Basic 0.12 0.22 Diluted 0.12 0.22 Weighted average shares outstanding: Basic 27,130 27,130 Diluted 27,130 27,131 EMERSON RADIO CORP.   AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands except share data) 6/30/11 (Unaudited) 3/31/2011 (A) ------------- ------------- ASSETS Current Assets: Cash and cash equivalents $ 21,536 $ 39,796 Restricted cash 2,049 600 Investment in marketable security - 4,725 Accounts receivable, net 30,772 10,929 Other receivables 1,087 1,413 Due from affiliates 15 - Inventory, net 20,549 8,515 Prepaid expenses and other current assets 504 549 Deferred tax assets 2,235 2,825 ------------- ------------- Total Current Assets 78,747 69,352 Property, plant, and equipment, net 2,832 2,921 Trademarks and other intangible assets, net 1,545 1,545 Deferred tax assets 1,967 2,540 Other assets 350 358 ------------- ------------- Total Assets $ 85,441 $ 76,716 ============= ============= LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities: Short-term borrowings - $ 2,466 Current maturities of long-term borrowings 46 46 Accounts payable and other current liabilities 22,683 14,408 Due to affiliates - 2 Accrued sales returns 1,571 1,199 Income taxes payable 244 196 ------------- ------------- Total Current Liabilities 24,544 18,317 Long-term borrowings 127 150 Deferred tax liabilities 167 158 ------------- ------------- Total Liabilities 24,838 18,625 Shareholders' Equity: Preferred shares -- 10,000,000 shares authorized; 3,677 shares issued and outstanding; liquidation preference of $3,677,000 3,310 3,310 Common shares -- $0.01 par value, 75,000,000 shares authorized; 52,965,797 shares issued, and 27,129,832 shares outstanding 529 529 Capital in excess of par value 98,785 98,785 Accumulated other comprehensive (losses) income (82) 746 Accumulated deficit (17,715) (21,055) Treasury stock, at cost, 25,835,965 shares (24,224) (24,224) ------------- ------------- Total shareholders' equity 60,603 58,091 ------------- ------------- Total Liabilities and Shareholders' Equity $ 85,441 $ 76,716 ============= ============= (A) Reference is made to the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2011 filed with the Securities and Exchange Commission on July 14, 2011. 
Contact:


EMERSON RADIO CORP.   
85 Oxford Drive
Moonachie, NJ 07074
CONTACT:
Investor Relations:
Robert Maffei
Investor Relations Manager
(973) 428-2098
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