The Singing Machine Company, Inc. (OTCQX: SMDM) recorded revenue growth of 9% to $49.3 million for the nine months ended December 31, 2016, compared to $45.2 million for the comparable period in 2015 (http://nnw.fm/u7k9T). For the quarter ended December 31, 2016, sales dropped to $16.3 million compared to $20.7 million during the same period of the prior year. The company said that drop was due to the timing of shipments, which occurred earlier in 2016 than the prior year.
Singing Machine makes a line of karaoke products, offering the consumer access to some 1,300 songs. The music can either be downloaded or streamed. The Singing Machine home line is available in North America or internationally through mass merchant and online retailers. The company is also entering the toy business with Singing Machine Kids (http://nnw.fm/hdh1G), a range of 11 new products for children from preschool through elementary school. The line of sing-a-long products is being shown for the first time to buyers at the New York Toy Fair, February 18-21, 2017.
The company’s net income jumped 3.9% for the nine months ended December 31, 2016, to $2,685,561, up from $2,583,460 for the nine months ended December 31, 2015. For the three months ended December 31, 2016, sales dropped 21% to $16,319,804 compared to $20,667,069 for the comparable period the prior year. Similarly, net income dropped 35% to $1,312,158 for the three months ended December 31, 2016, from $2,006,913 during the same three-month period of the prior year.
Gary Atkinson, Singing Machine CEO, said, “This fiscal year we’ve grown net sales by 9% over last year and we’ve grown pre-tax net income by 33% to $4 million. On the product roadmap, we significantly expanded our distribution of our Digital Download Line of products and saw impressive growth in both downloading and streaming subscriptions.”
Bernardo Melo, VP of Sales, commented that ecommerce has grown to more than 18% of company sales. He said the company enjoyed an average 88% sell-thru across major retailers on both Black Friday and the Christmas season.
The company is unveiling its Singing Machine Kids line and will also, through its partnership with Stingray, offer a karaoke Sing-Along mobile app to be available in the fall. The app, available for both iOS and Android devices, will complement the Singing Machine Kids line.
The toy product line consists of 11 items, including:
-Bluetooth Recording Studio, a portable studio with six sound effects loaded in advance.
-Mic Guy Bluetooth Sing-Along, a battery operated system designed for the littlest singers.
-Candy House Sing-Along, a joyful speaker system with a colored lit roof top.
-Blackboard Calculator, designed to make math interactive and fun with the Wise Old Owl.
“We’re incredibly proud of our new kids line,” commented CEO Atkinson. “Not only have we designed a range of products that will enhance our mission of spreading joy through music, we have also created products that will help kids with a variety of early learning and developmental skills.”
For more information, visit www.SingingMachine.com
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