Hauppauge Digital Reports Fiscal 2012 Fourth Quarter And Year End Results

  Hauppauge Digital Reports Fiscal 2012 Fourth Quarter And Year End Results

PR Newswire

HAUPPAUGE, N.Y., Jan. 2, 2013

HAUPPAUGE, N.Y., Jan. 2, 2013 /PRNewswire/ --Hauppauge Digital Inc. (NASDAQ:
HAUP), a leading developer of digital video TV and data broadcast receiver
products for personal computers, today reported financial results for the
fourth fiscal quarter and year ended September30, 2012.

FOURTH QUARTER RESULTS

Net sales were $8.7 million for the fourth quarter of fiscal 2012 compared to
$10.3 million reported for the previous year's fourth fiscal quarter.

The Company incurred a net loss of $1,613,219 for the fourth quarter of fiscal
2012 compared to a net loss of $2,075,730 for the fourth quarter of fiscal
2011. Net loss per share for the fourth quarter of fiscal 2012 was $0.16 on a
basic and diluted basis, compared to a net loss per share of $0.21 on a basic
and diluted basis for the fourth quarter of fiscal 2011.

FISCAL YEAR RESULTS

Net sales were $44.6 million for the fiscal year ended September 30, 2012
compared to $42.3 million reported for fiscal year ended September 30, 2011.

The Company incurred a net loss of $2,543,450 for the fiscal year ended
September 30, 2012 compared to a net loss of $5,849,072 for the fiscal year
ended September 30, 2011. Net loss per share for the fiscal year ended
September 30, 2012 was $0.25 on a basic and diluted basis, compared to a net
loss per share of $0.58 on a basic and diluted basis for the fiscal year ended
September 30, 2011.

DISCUSSION OF RESULTS

Ken Plotkin, Hauppauge's Chief Executive Officer stated, "Led by increased
sales of our USB-Live and HD PVR video recorder and video streaming products,
worldwide sales for fiscal 2012 increased by 8.2% before the negative effect
caused by the decline in the Euro. Taking into account the 2.8% decline in the
Euro, our net sales increased 5.4% in fiscal 2012 compared with fiscal 2011.

As a result of reduced expenses and headcount, which the company implemented
in the fourth quarter of fiscal 2011, our selling, general and administrative
expenses declined by 16.8% from fiscal 2011. The combination of increased
sales and reduced expenses allowed Hauppauge to reduce our loss approximately
56.52% compared to fiscal 2011.

At the Gamescon show in Cologne, Germany in August 2012, Hauppauge introduced
a new gaming recorder designed to allow console and PC gaming enthusiasts to
record video game play from the Microsoft Xbox 360 and the Sony Playstation 3.
Called the HD PVR 2, this new game recorder was designed to provide new
features compared with the original HD PVR high definition video recorder. HD
PVR 2 was shipped to our customers starting in September 2012.

In anticipation of the launch of the new HD PVR 2, in fiscal Q4 we reduced
prices and limited the sales of the original HD PVR in order to reduce channel
inventory. The effect of price reductions and limited shipments of the
original HD PVR dampened our fourth fiscal quarter sales."

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.

This news release contains forward-looking statements as that term is defined
in the federal securities laws. The events described in forward-looking
statements contained in this may not occur. Generally these statements relate
to business plans or strategies, projected or anticipated benefits or other
consequences of our plans or strategies, financing plans, projected or
anticipated benefits from acquisitions that we may make, or projections
involving anticipated revenues, earnings or other aspects of our operating
results or financial position, and the outcome of any contingencies. Any such
forward-looking statements are based on current expectations, estimates and
projections of management. We intend for these forward-looking statements to
be covered by the safe-harbor provisions for forward-looking statements.
Words such as "may," "will," "expect," "believe," "anticipate," "project,"
"plan," "intend," "estimate," and "continue," and their opposites and similar
expressions are intended to identify forward-looking statements. We caution
you that these statements are not guarantees of future performance or events
and are subject to a number of uncertainties, risks and other influences
(including, but not limited to, those set forth in "Item 1A–Risk Factors" on
our Form 10-K), many of which are beyond our control, that may influence the
accuracy of the statements and the projections upon which the statements are
based. Any one or more of these uncertainties, risks and other influences
could materially affect our results of operations and whether forward-looking
statements made by us ultimately prove to be accurate. Our actual results,
performance and achievements could differ materially from those expressed or
implied in these forward-looking statements. We undertake no obligation to
publicly update or revise any forward-looking statements, whether from new
information, future events or otherwise. All cautionary statements made in
this news release should be read as being applicable to all related
forward-looking statements wherever they appear.

[Financial Table Follows]

HAUPPAUGE DIGITAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
                                           Three months ended September 30,
                                           2012            2011
Net sales                                 $8,676,442      $10,276,534
Cost of sales                            6,441,000       7,434,039
Gross profit                              2,235,442       2,842,495
Selling, general and administrative       2,961,839       3,924,729
expenses
Research & development expenses            959,205         1,040,844
Loss from operations                      (1,685,602)     (2,123,078)
Other income (expense):
 Interest income                          698             1,881
 Foreign currency                         (3,008)         8,723
Total other income (expense)             (2,310)         10,604
Loss before tax provision                 (1,687,912)     (2,112,474)
Current tax provision                     42,340          58,964
Deferred tax benefit                       (117,033)       (95,708)
Net loss                                   ($1,613,219)    ($2,075,730)
Net loss per share-basic and diluted       ($0.16)         ($0.21)
Weighted average shares-basic and diluted  10,122,344      10,122,344



HAUPPAUGE DIGITAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
                                             Twelve months ended September 30,
                                             2012            2011
Net sales                                    $44,640,360     $42,343,059
Cost of sales                              31,144,077      29,262,521
Gross profit                                13,496,283      13,080,538
Selling, general and administrative         12,187,542      14,486,996
expenses
Research & development expenses              3,399,212       4,258,023
Loss from operations                        (2,090,471)     (5,664,481)
Other income:
 Interest income                            4,500           10,450
 Foreign currency                           9,903           6,268
Total other income                          14,403          16,718
Loss before tax provision                   (2,076,068)     (5,647,763)
Current income tax expense                   150,204         197,309
Deferred tax expense                         317,178         4,000
 Net loss                               ($2,543,450)    ($5,849,072)
Net loss per share-basic and diluted         ($0.25)         ($0.58)
Weighted average shares-basic and diluted    10,122,344      10,108,670



HAUPPAUGE DIGITAL INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
                                               September 30, September 30,
                                               2012          2011
Assets:
Current Assets:
 Cash and cash equivalents               $5,095,853    $4,080,537
 Accounts receivables, net of various      2,618,081     3,708,696
allowances
 Other non trade receivables               1,995,654     2,408,326
 Inventories                              9,497,856     10,092,224
 Deferred tax asset current                977,488       1,127,641
 Prepaid expenses and other current        1,088,085     992,258
assets
 Total current assets           21,273,017    22,409,682
 Intangible assets, net                    2,431,594     3,186,430
 Property, plant and equipment, net        235,978       368,703
 Security deposits and other non current   109,218       112,813
assets
 Deferred tax asset non current            622,272       789,297
                                               $24,672,079   $26,866,925
Liabilities and Stockholders' Equity :
Current Liabilities:
 Accounts payable                           $5,865,085    $6,674,900
 Accrued expenses –fees                     4,002,754     4,082,719
 Accrued expenses                           12,608,759    11,417,895
 Income taxes payable                       230,123       242,201
 Total current liabilities        22,706,721    22,417,715
Stockholders' Equity
Common stock $.01 par value; 25,000,000 shares
authorized,
10,882,823 issued                              108,828       108,828
Additional paid-in capital                     18,316,085    18,187,595
Retained deficit                               (9,443,408)   (6,899,958)
Accumulated other comprehensive loss          (4,610,599)   (4,541,707)
Treasury Stock at cost, 760,479 shares       (2,405,548)   (2,405,548)
 Total stockholders' equity        1,965,358     4,449,210
                                               $24,672,079   $26,866,925



SOURCE Hauppauge Digital Inc.

Website: http://www.hauppauge.com
Contact: Investor Contacts: Gerald Tucciarone, Chief Financial Officer,
+1-631-434-1600, extension 306
 
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