N@N

Hauppauge Digital Reports Fiscal 2010 Fourth Quarter and Year End Results

^{Published on 2010-12-29 08:05:54 - Market Wire}
 

HAUPPAUGE, N.Y.--([ BUSINESS WIRE ])--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 September 30, 2010.

"Contributing to the decline in sales in 2010 were very weak sales to personal computer manufacturers. In 2011, we expect the weakened state of the global economy to still be a factor, especially in relation to our sales in Europe."

FOURTH QUARTER RESULTS

Net sales were $11.6 million for the fourth quarter of fiscal 2010 compared to $16.3 million reported for the previous yeara™s fourth fiscal quarter.

The Company incurred a net loss of $1,524,352 for the fourth quarter of fiscal 2010 compared to a net loss of $1,551,256 for the fourth quarter of fiscal 2009. Net loss per share for the fourth quarter of fiscal 2010 and the fourth quarter of fiscal 2009 was $0.15 on a basic and diluted basis.

FISCAL YEAR RESULTS

Net sales were $56.9 million for the fiscal year ended September 30, 2010 compared to $59.3 million reported for the fiscal year ended September 30, 2009.

The Company incurred a net loss of $1,846,560 for the fiscal year ended September 30, 2010 compared to a net loss of $7,143,021 for the fiscal year ended September 30, 2009. Net loss per share for the fiscal year ended September 30, 2010 was $0.18 on a basic and diluted basis, compared to a net loss per share of $0.71 on a basic and diluted basis for the fiscal year ended September 30, 2009.

DISCUSSION OF RESULTS

Ken Plotkin, Hauppaugea™s Chief Executive Officer stated, aOn a positive note, in 2010 sales of our TV tuner products in North America were strong, especially considering the weakness in the retail computer products market. In addition, we saw an increase in our gross profit margins due to a more favorable mix of sales to computer product retailers versus sales to personal computer manufacturers.

aAs the complexity of our TV tuner products increases, the average time it takes us to bring a new product to market is also increasing. At the end of fiscal 2010, we had three new products still under development which we expect will be launched and shipping in fiscal 2011. These products are internally called aBroadwaya, aColossusa and aWinTV-DVRa. In addition, we expect to launch our first U.S. mobile digital TV receiver, which we plan to call aWinTV-Aero-ma. The WinTV-Aero-m allows laptop or netbook users to watch the new ATSC M/H live over-the-air digital TV programs while they travel. ATSC M/H is a broadcast technology being launched in the United States and promoted by major broadcasters such as NBC and Fox.

aContributing to the decline in sales in 2010 were very weak sales to personal computer manufacturers. In 2011, we expect the weakened state of the global economy to still be a factor, especially in relation to our sales in Europe.a

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 Companya™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 news release 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 amay,a awill,a aexpect,a abelieve,a aanticipate,a aproject,a aplan,a aintend,a aestimate,a and acontinue,a 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, many of which are beyond our control, that may influence the accuracy of the statements and the projections upon which the statements are based. Factors that could cause actual results to differ materially from those set forth or implied by any forward-looking statement include, but are not limited to, the mix of products sold and the profit margins thereon, order cancellation or a reduction in orders from customers, competitive product offerings and pricing actions, the availability and pricing of key raw materials, dependence on key members of management, successful integration of acquisitions, economic conditions in the United States and abroad, fluctuation of the value of the Euro versus the U.S. dollar, continued operating losses, our ability to obtain financing, our ability to maintain our NASDAQ listing, as well as other risks and uncertainties discussed in the Companya™s reports filed with the Securities and Exchange Commission, including, but not limited to, the Companya™s Annual Report on Form 10-K for the fiscal year ended September 30, 2010, the Companya™s Form 10-Q for the three months ended December 31, 2009, the Companya™s Form 10-Q for the three months ended March 31, 2010 and the Companya™s Form 10-Q for the three months ended June 30, 2010. 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.