Hauppauge Digital Inc. (HAUP, Financial) filed Annual Report for the period ended 2011-09-30.
Hauppauge Digital Inc. has a market cap of $8.2 million; its shares were traded at around $0.81 with and P/S ratio of 0.14.
Net sales for the twelve months ended September 30, 2011 decreased $14,575,558 compared to the twelve months ended September 30, 2010 as shown in the table below.
We typically experience a slowdown during the summer holiday period in Europe starting with the second half of our fiscal third quarter and into the first half of our fiscal fourth quarter. We also experience decreased sales during the summer holiday period in the U.S. This has historically caused sales for the last six months of our fiscal year to be lower than the first six months of our fiscal year. Our sales for the first six months of fiscal 2010 and fiscal 2011 accounted for approximately 56% and 55% of sales, respectively, and our sales for the last six months of fiscal 2010 and 2011 accounted for approximately 44% and 45% of sales, respectively.
Gross profit percentage for the twelve months ended September 30, 2011 was 30.89% compared to 32.38% for the twelve months ended September 30, 2010, a decrease of 1.49%.
The net cash decrease due to operating activities was $2,976,286. The decrease was due to $4,317,848 of net loss adjusted for non cash items, a decrease in accounts payable and accrues expenses of $342,134 and an increase in prepaid expenses and other current assets of $7,523. Somewhat offsetting these cash decreases were decreases in accounts receivable and inventory of $1,028,682 and $662,537, respectively. The decrease in accounts receivable was due to collections and lower fiscal 2011 fourth quarter sales. The decrease in inventory was due to reduced production related to the lower sales. Cash of $56,294 was used in investing activities for the purchase of fixed assets. Cash of $46,798 from financing activities came from exercise of incentive stock options. The effect of changes in exchange rates provided an $8,415 increase in cash.
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Hauppauge Digital Inc. has a market cap of $8.2 million; its shares were traded at around $0.81 with and P/S ratio of 0.14.
Highlight of Business Operations:
As our sales are primarily to the consumer market, we have experienced certain seasonal revenue trends. Our peak sales quarter, due to holiday season sales of computer equipment, is typically our first fiscal quarter (October to December), followed by our second fiscal quarter (January to March). In addition, our international sales, mostly in the European market, were 37% and 54% of sales for the fiscal years ended September 30, 2011 and 2010, respectively. Our fiscal fourth quarter sales (July to September) can be potentially impacted by the reduction of activity experienced in Europe during the July and August summer holiday period. Accordingly, any sales or net income in any particular period may be lower than the sales and net income in a preceding or comparable period. Period-to-period comparisons of our results of operations may not be meaningful, and should not be relied upon as indications of our future performance. In addition, our operating results may be below the expectations of securities analysts and investors in future periods. Failure to meet such expectations, should such an event occur, will likely cause our share price to decline.Net sales for the twelve months ended September 30, 2011 decreased $14,575,558 compared to the twelve months ended September 30, 2010 as shown in the table below.
We typically experience a slowdown during the summer holiday period in Europe starting with the second half of our fiscal third quarter and into the first half of our fiscal fourth quarter. We also experience decreased sales during the summer holiday period in the U.S. This has historically caused sales for the last six months of our fiscal year to be lower than the first six months of our fiscal year. Our sales for the first six months of fiscal 2010 and fiscal 2011 accounted for approximately 56% and 55% of sales, respectively, and our sales for the last six months of fiscal 2010 and 2011 accounted for approximately 44% and 45% of sales, respectively.
Gross profit percentage for the twelve months ended September 30, 2011 was 30.89% compared to 32.38% for the twelve months ended September 30, 2010, a decrease of 1.49%.
The net cash decrease due to operating activities was $2,976,286. The decrease was due to $4,317,848 of net loss adjusted for non cash items, a decrease in accounts payable and accrues expenses of $342,134 and an increase in prepaid expenses and other current assets of $7,523. Somewhat offsetting these cash decreases were decreases in accounts receivable and inventory of $1,028,682 and $662,537, respectively. The decrease in accounts receivable was due to collections and lower fiscal 2011 fourth quarter sales. The decrease in inventory was due to reduced production related to the lower sales. Cash of $56,294 was used in investing activities for the purchase of fixed assets. Cash of $46,798 from financing activities came from exercise of incentive stock options. The effect of changes in exchange rates provided an $8,415 increase in cash.
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