Kimball International said first quarter net income plunged to $4.8 million from $10.8 million year ago as sales slid to $285.7 million from $320.8 million. Lower profit came as sales of Kimball’s furniture and cabinets business, including rear- projection TVs, and electronic contract assemblies dropped. Furniture revenue fell to $193.5 million from $223.7 million as sales shifted to lower margin products, company said. Operating profit improved at Kimball’s projection-TV cabinet plant in Juarez despite downturn in sales. Kimball purchased Juarez factory from Zenith in late 1990s as CE company disposed of manufacturing businesses. Electronic contract assemblies segment sales declined to $92.2 million from $97.1 million in year.
Handspring said first quarter loss widened to $32 million from $16.3 million year ago as revenue declined to $61.4 million from $70.5 million. Gross profit margin slid to 8.6% from 12.6% as Handspring cut prices on handheld PCs to clear out inventory for arrival of new Neo and Pro models. Inventory rose in quarter to $6.7 million from $2.8 million June 30. International revenue declined to $4 million, 7% of revenue, from 24%. Sales in Japan suffered from Handspring’s lack of color screen version of its handheld, while models sold in Europe encountered stronger competition from Microsoft’s Pocket PC platform, CEO Donna Dubinsky said. New Treo handheld PC, first of which ships in Jan. at $399, combines organizer, cellphone and Web browser and will be based on GSM standard at start. Color screen version of Treo is expected to be available by mid-2002 at $599. Treo, which is based on 3.5 version of Palm operating system, isn’t compatible with Springboard modules used in other Visor devices. Software upgrade to GPRS standard will be completed in 2nd quarter when Handspring also expects to add always-on e-mail feature. Treo also has full on-screen keyboard that allows user to dial phone number. With introduction of Treo, Handspring said it would close out largely unsuccessful VisorPhone by year-end. While Handspring has studied adding Java to handheld platform, it has “no immediate plans” to do so, Chief Technology Officer Jeffrey Hawkins said: “We're always looking at Java and we can support it if we need to.”
Electronics Boutique online subsidiary EBWorld.com signed definitive agreement with Microsoft to provide PC games on broadband games-on-demand Web site EB1, www.eb1.com. As part of deal, visitors to site will be able to rent full retail versions of recently shipped games published by Microsoft. Other game makers who have signed similar deals with EBWorld.com include Eidos Interactive, Infogrames, Take-Two Interactive.
New report predicts 41% of U.S. online households will connect via broadband by 2006. Jupiter Media Metrix analysts forecast that number of households accessing Internet via broadband connectivity -- cable modem, DSL, satellite or fixed wireless -- would increase to 35.1 million in 2006 from 5.2 million in 2000, with cable modems being primary driver. “Despite the recent failures of several broadband pioneers, and slower growth of the overall online population, broadband will find the masses in the U.S. shortly,” Jupiter analyst Joseph Laszlo said.
TV ad campaign backing Bam! Entertainment’s Sports Illustrated For Kids Baseball and Football Game Boy Advance titles will run through Nov. on Cartoon Network and WB Network. E-rated (Everyone) games, developed by Sennari Interactive, ship this month at $39.99 each. Bam! said print ads would run in Nov.-Dec. issues of Sports Illustrated For Kids Magazine, along with Web campaign at www.SIkids.com.
Jakks Pacific reported $10.9 million profit (56? per diluted share) for 3rd quarter ended Sept. 30, up from $9.8 million profit (48?) year ago. Revenue inched up to $92.8 million from $91.8 million. CEO-Chmn. Jack Friedman said: “In light of recent world events and the slowdown that is affecting virtually all segments of the economy including retail, we are well satisfied” with results. Malibu, Cal., company makes videogames and toys. Friedman said his company’s key videogame franchise -- World Wrestling Federation (shared with game maker THQ) -- would spawn 3 new titles in 4th quarter, including SKUs for Game Boy Advance, PlayStation 2, Xbox: “As the installed base for the new hardware systems increases, it bodes extremely well for sales of our World Wrestling Federation videogames for the 4th quarter, fiscal 2002 and beyond.”
As first DVD+RW recorders ship to stores from Philips, DVD Format/Logo Licensing Corp. (DVD FLLC)has posted advisory distancing itself and DVD Forum’s DVD-RAM and DVD-RW standards from proprietary DVD+RW recording system.
Online music company Pressplay signed licensing agreements with 6 independent labels. Pressplay said deals expanded its online music library that already included tracks from major record labels EMI Recorded Music, Sony Music Entertainment, Universal Music Group. Latter 2 companies jointly own Pressplay. New, nonexclusive deals included one with Navarre. Via new agreements, Pressplay’s library will be getting songs by artists including Marshall Crenshaw, Herman’s Hermits, Billie Holiday, Alison Krauss, Mannheim Steamroller, Charlie Parker, Graham Parker, Jonathan Richman, Kenny Rogers, George Thorogood, 2 Live Crew, Buckwheat Zydeco. Pressplay service is scheduled to start this fall, but date hasn’t been announced. Competing MusicNet service jointly owned by BMG, EMI, RealNetworks and Warner also is also to start soon, although that date also hasn’t been announced.
LodgeNet Entertainment said revenue increased to $57.7 million in 3rd quarter ended Sept. 30 from $52.9 million same quarter year ago. But Sioux Falls, S.D., interactive service provider to lodging industry said its loss deepened to $4.7 million (-38? per share) from $4.1 million (-34?) year earlier. LodgeNet CEO-Pres. Scott Petersen said: “Despite the tragic events of Sept. 11 and the subsequent impact on the overall travel industry, we posted our 32nd consecutive record quarter for revenue and cash flow as we continued to solidly execute on our long-term strategic growth plan.” He said that while terrorist attacks were causing company “to moderate our capital expenditure plans to some degree, we remain on track to serve approximately 810,000 guest rooms with interactive television services and have our new digital platform in more than 100,000 rooms by the end of 2001.” Company’s services include Nintendo videogames on demand.
Agreement to work with consumer electronics, broadcast and auto industries on drafting open platform for standardizing data delivery applications of in-band, on-channel (IBOC) DAB was announced by iBiquity Digital and Impulse Radio. Announcement was made at Digital Radio Wireless Data Conference in Detroit Tues. Pat Walsh, iBiquity vp-business development for wireless data services, said major IBOC benefit was opportunity for radio systems to generate additional revenue by delivering data services to complement regular audio programming. Walsh said company believed that consumers would view new IBOC data services “as valuable upgrades to today’s radio.”