Meade Instruments Corp. reported net sales of $4.1 million for the first quarter of fiscal 2013 ended May 31, compared with $4.2 million for the first quarter of fiscal 2012 ended May 31, 2011.
The net loss was higher than the prior year primarily due to a substantially lower gross profit margin which was primarily due to 1) a decrease in capitalizable manufacturing costs caused by a reduction in manufactured finished goods inventories and 2) an unfavorable shift in product mix compared to prior year net sales.
The company's fourth quarter of fiscal 2012 (ended Feb. 29, 2012) and first quarter of fiscal 2013 (ended May 31, 2012) were adversely impacted by delays in shipments of the company's LX800 and LX80 telescopes and, to a lesser extent, the company's more recently announced LX600 telescopes, as well as higher product development costs relating to the development of these products.
The company has a backlog of orders for approximately $10 million which it expects to work through over the next three quarters. The company's backlog at the same period in the prior year was approximately $4 million. The company defines “backlog” as orders received for products with due dates over the next 12 months; such orders can be canceled by the customer(s) prior to shipment but generally have limited rights of return.
“We have had a slow start to fiscal 2013, especially with regards to the LX800 which has required a longer design schedule than initially anticipated. But we expect to begin shipping the LX80 and LX800 in quantity very soon,” stated Steven G. Murdock, Chief Executive Officer of Meade.
“We've also waited to begin shipping the New LX600 for similar reasons but expect to see the LX600 beginning to make it out to our dealers and into the hands of amateur astronomers very soon. We are very proud of the LX600-by far the most radically advanced fork-mounted telescope we have ever produced; complete with f/8 Advanced Coma-Free optics, our All New X-Wedge and our new StarLock auto-guider. We expect this product to be well received by the amateur astronomy community,” Murdock continued.
| MEADE INSTRUMENTS CORP. | |||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||
| (In thousands, expect per share data) | |||
| (Unaudited) |
MEADE INSTRUMENTS CORP. | |||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||
(In thousands, expect per share data) | |||
(Unaudited) | |||
Three Months Ended | |||
2012 | 2011 | 2010 | |
Net sales | $ 4,104 | $ 4,173 | $ 5,502 |
Cost of sales | 3,564 | 2,804 | 4,368 |
Gross profit | 540 | 1,369 | 1,134 |
Selling expenses | 415 | 459 | 553 |
General and administrative expenses | 904 | 944 | 1,236 |
Research and development | 272 | 199 | 204 |
Release of warranty liability | (293) | – | – |
Operating loss | (758) | (233) | (859) |
Interest income | – | (1) | (1) |
Loss before income taxes | (758) | (232) | (858) |
Income tax expense (benefit) | – | – | – |
Net loss | $ (758) | $ (232) | $ (858) |
