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Meade Instruments Corp. Reports Operating Results (10-Q)

January 10, 2011 | About:
10qk

10qk

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Meade Instruments Corp. (MEAD) filed Quarterly Report for the period ended 2010-11-30.

Meade Instruments Corp. has a market cap of $4.55 million; its shares were traded at around $3.9 with and P/S ratio of 0.2.

Highlight of Business Operations:

The Company reported net sales of $8.6 million for the quarter ended November 30, 2010, an increase of $1.4 million or 19% from net sales of $7.2 million in the same period last year. Most of the increase was attributable to increased sales of mid-range telescopes due to improved supply in the third quarter of fiscal 2011 compared to the third quarter of fiscal 2010, increased sales of low-end telescopes due to the timing of shipments compared to the same quarter last year and increased sales of weather stations due to the introduction of new products in the fourth quarter of last fiscal year. Sales of high-end products were marginally lower in spite of product enhancements, significant promotions and a reduction in backlog. Sales of sports optics products such as spotting scopes and binoculars were lower due to less demand for those products. Net sales to the Companys top 25 customers increased by approximately 30%. Approximately 27% and 29% of the Companys net sales during each of the three month periods ended November 30, 2010 and 2009, respectively, were from two customers.

General and administrative expenses for the third quarter ended November 30, 2010 were $0.9 million, a decrease of $0.2 million or 18% compared to $1.1 million in the same quarter in the prior year. Most of the decrease in general and administrative expenses was due to reductions in headcount, lower professional fees and insurance costs and lower stock compensation expenses.

The Company reported net sales of $21.2 million for the first nine months of fiscal 2011, an increase of $2.1 million or 11% from net sales of $19.1 million in the same period last year. Most of the increase was due to increased sales of mid-range telescopes due to increased supply availability in the first nine months of fiscal 2011 compared to the previous year, increased sales of low-end telescopes due to the timing of shipments compared to the same period last year, and increased sales of weather stations due to introduction of new products in fourth quarter of last fiscal year. Sales of high-end telescopes were marginally higher due to increased supply and sales promotions. This increase was partially offset by reductions in sales of the Companys sports optics products such as spotting scopes and binoculars due to lower demand. Approximately 27% and 26% of the Companys net sales during each of the nine month periods ended November 30, 2010 and 2009, respectively, were from two customers.

General and administrative expenses for the first nine months of fiscal 2011 were $3.1 million, a decrease of $1.0 million or 24% compared to $4.1 million in the prior year. Most of the decrease was due to lower stock compensation expense, reductions in headcount, lower professional fees and insurance costs and reductions in certain non-recurring expenses such as legal fees.

At November 30, 2010, the Company had cash and cash equivalents of $2.2 million, as compared to $5.1 million at February 28, 2010, a decrease of $2.9 million predominantly due to the Companys loss from operations and fluctuations in working capital.

Net cash used in operating activities was $2.8 million during the nine months ended November 30, 2010 compared to $3.1 million during the nine months ended November 30, 2009 a decrease of $0.3 million or 10% primarily due to the reduction of approximately $1.2 million in the Companys net loss and a $0.7 million reduction in cash used for restructuring costs associated with officer severance and the lease termination fee associated with the relocation of the Companys corporate headquarters in February 2009, partially offset by an increase in accounts receivable of $1.0 million due to the timing of net sales.

Read the The complete Report

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