Boston Acoustics and Visteon will develop and deliver Boston Acoustics-branded OEM autosound systems to automakers under joint development agreement announced Tues. Agreement could provide boost to Boston Acoustics OEM business, which has slumped because of its reliance on Gateway Computer as dominant customer of multimedia PC speakers.
NCUBE Corp. and Widevine Technologies announced agreement to offer streaming media security to broadband service operators. “Encryption on the fly” integrates nCUBE’s n4 Streaming Media Appliance with Widevine Cypher, Widevine video-on-demand (VoD) technologies. Idea is to provide broadband service operators, media and entertainment companies secure means for deploying digital content on-demand to consumer devices such as personal computer and TV set-top box. Partnership will work to secure “valuable and proprietary digital content from being stolen, hacked or otherwise compromised,” nCube Pres. Michael Pohl said.
BMC Industries, hampered by slowdown in sales of TV and PC monitor masks, reported $4.1 million 3rd quarter loss, vs. $2.7 million profit year ago as revenue plunged to $73.3 million from $90.2 million.
Sears opened 2nd store that melds CE and appliances in freestanding location in Bolingbrook, Ill., and will add 3rd in Mount Prospect, Ill., by early Nov., Home Electronics Vp-Gen. Mgr. Ray Brown said. Sears opened first test store in Ind. earlier this year and thus far has posted sales incremental to existing department store locations, Brown said. “If you look at the trading area and the stores that used to service it incrementally we are growing that business,” he said. Brown declined to release sales figures. While first 3 stores have same format, “I can’t say we won’t looking at tweaking it next year and 2002, to a certain degree, will vary [in format] at least slightly.”
Infogrames started shipping Sid Meier’s Civilization III E- (Everyone) rated PC game at $49.99. Special edition is also available at $59.99. Title was developed by Firaxis Games and runs on PCs with Windows 95/98/Me/2000/XP operating systems. Macinstosh version is slated to ship in March, Infogrames said.
Tower Records, taking $46.7 million charge to cover shutdown of book business, said annual loss soared to $90.3 million from $10.1 million year earlier as revenue declined to $1.07 billion from $1.09 billion. Charges included $20.7 million related to write-down of book inventory and $14.2 million for write-off of leasehold improvements. Tower, which embarked on 3-year restructuring program in Feb., closed 6 of 10 book stores as well as 2 frame/gallery outlets and transferred stores in Argentina, Hong Kong and Taiwan to franchise agreements. It has single store remaining in Canada that’s expected to close in first quarter. Tower ended year with $297.7 million in debt, down from $311.6 million year ago. It amended $225 million revolving credit agreement with lenders earlier in fall that could reduce balance by $5 million this month and $10 million in Dec. Recorded music accounted for 86.3% of revenue, down from 87.8%, while video rose to 9.8% from 8.6%. Sales of personal electronics, blank tape, accessories and other products represented 3.9% of revenue, up from 3.6%. Tower ended fiscal year with 173 stores worldwide including 106 in U.S. and 67 in international markets. It had franchise agreements in 10 countries including China. Chmn. Russell Solomon received $632,780 salary, same as year ago, while bonus declined to $300,000 from $447,000. Pres.-CEO Michael Solomon was paid $360,400 and $100,000 bonus, same as year earlier.
TDK Mediactive (TDKM) is co-publishing PC title Shrek Game Land Activity Center with Activision’s Minneapolis-based Activision Value Publishing (AVP) subsidiary. Calabasas, Cal., game maker said title will ship in Nov. at $19.99. TDKM CEO Vincent Bitetti noted game will be his company’s “3rd Shrek title to be released this year.” But game is first title to be released under co-publishing agreement recently signed by TDKM and AVP.
SanDisk obtained permanent injunction against Viking Components, Rancho Santa Margarita, Cal., preventing latter from selling CompactFlash cards in U.S. it manufactures that incorporate Lexar Media’s 1140, 1145, 1175 and 1250 controllers. Viking also paid SanDisk “nominal” undisclosed amount to settle patent infringement complaint that SanDisk filed in U.S. Dist. Court, San Francisco, earlier this year. Commenting on settlement, Viking co-CEO Glenn McCusker said: “While this has been a nuisance and a distraction, it has had no effect on our ability to support our customers’ business.”
Aaron Rents reported $1.9 million 3rd quarter loss, reversing year-earlier $6.7 million profit as it took $5.6 million in one-time noncash charges related to its struggling rent-to-rent (RTR) business. Sales rose to $132.5 million from $124.8 million as revenue from rentals and fees jumped to $99.3 million from $89.4 million. Charge included $3.8 million in future real estate lease obligations and $1 million for write- down of inventory. Aaron’s sold 6 RTR stores in quarter and gradually reduced number to 72 from peak of 186. RTR declined 18% in same-store sales. RTR “has lost a lot of business not only in the last 6 months, but in the last 10 to 15 years,” CEO Charles Loudermilk said. At same time, Aaron’s has expanded number of sales and lease ownership stores to 556 -- 357 company- owned and 199 franchised -- including opening of 60 in quarter. Many of new openings stemmed from acquisition of 80 former Heilig-Meyer stores, Richmond-based chain that liquidated earlier this year. Sales and lease ownership business posted 20% gain in revenue in quarter to $96 million. Systemwide, which included revenue from franchised locations, sales jumped to $141.9 million from $118.7 million.