Singing Machine Achieves $17.4 Million in Revenue; Generates $0.7 Million in Net Income for the Second Quarter
The Singing Machine Company (OTCQX: SMDM) reported strong financial results for Q2 ended September 30, 2021. Highlights include a remarkable 450% increase in music subscription revenue and net sales of $17.4 million. The company achieved a net income of $0.7 million and strengthened its balance sheet through a $10 million capital raise. Additionally, Singing Machine is taking steps to uplist to a national exchange. The CEO noted that despite supply chain challenges, they launched new products and continue to see robust demand.
- 450% increase in music subscription revenue
- Net sales of $17.4 million for the quarter
- Net income of approximately $0.7 million
- Successful $10 million capital raise
- Initiated efforts to uplist to a national exchange
- Fully diluted EPS of $0.01
- None.
Fort Lauderdale, FL, Nov. 22, 2021 (GLOBE NEWSWIRE) -- The Singing Machine Company, Inc. (“Singing Machine” or the “Company”) (OTCQX: SMDM) – the worldwide leader in consumer karaoke products – today announced its second quarter financial results for the three months ended September 30, 2021.
Second Quarter Highlights:
- Strong growth in music subscription revenue, which increased
450% relative to the same quarter prior year. - Net sales for the quarter of
$17.4 million ; fiscal year-to-date revenue of$23.4 million . - Net income of approximately
$0.7 million for the quarter; continue to demonstrate ability to produce profitable quarters. - Strengthened balance sheet with a successful
$10 million capital raise. - Commenced efforts to uplist to a national exchange.
- Fully diluted EPS of
$0.01 for the quarter.
Management Commentary:
Gary Atkinson, Singing Machine CEO, commented, “Our global operations team has done a tremendous job this quarter overcoming significant supply chain challenges to source materials and manufacture product and deliver it all the way through to the retail shelf where we continue to see strong demand. Despite challenges to supply and transportation, our team is pleased we were still able to launch new, innovative products and deliver over
“We are also pleased to highlight the strong growth in our subscription-based content offerings. Through our partnership with our new strategic investor, the Stingray Group, we continue to look to increase our recurring revenue subscription model by enhancing our product offerings. The continued growth and shift to subscription revenue will result in improved margins and less choppy revenue streams. We are optimistic that this high-margin, subscription offering will steadily be a more meaningful percent of our revenue as we look to continue to design new products in the future,” added Atkinson.
Earnings Call Information:
The Company will host a conference call today, Monday, November 22, 2021, beginning at 10:00 am Eastern time to discuss these results and answer questions. If you would like to participate on the call, please dial (866) 342-8591 and use conference ID: SMDM.
An audio rebroadcast of the call will be available later in the day after the earnings call and can be heard at: www.singingmachine.com/investors.
About The Singing Machine
Singing Machine® is the leading provider of karaoke products to consumers across the world. The Company offers the industry's widest line of at-home and in-car karaoke entertainment products, which allow consumers to find a machine that suits their needs and skill level. The Company’s products are sold in over 25,000 locations worldwide, including at well-known retailers such as Amazon, Costco, Sam’s Club, Target, and Walmart. As the most recognized brand in karaoke, Singing Machine products incorporate the latest technology and provide access to over 100,000 songs for streaming through its mobile app and select WiFi-capable products. To learn more, go to www.singingmachine.com.
Investor Relations Contact:
Brendan Hopkins
(407) 645-5295
investors@singingmachine.com
www.singingmachine.com
www.singingmachine.com/investors
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management and include, but are not limited to statements about our financial statements for the fiscal year ended March 31, 2021. You should review our risk factors in our SEC filings which are incorporated herein by reference. Such forward-looking statements speak only as of the date on which they are made and the company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
