Shares of Singing Machine Company Inc. (OTC: SMDM), developer and distributor of a full line of consumer-oriented karaoke machines and music under The Singing Machine™ and SoundX™ brand names, opens today higher. At last check, the stock is 6.25 higher at $0.170.
The penny stock of SMDM ended Friday 33.44% higher at $0.160, with volume up from daily average of 4,912 to 1.53 million. The stock touched a new 52-week high of $0.39 in Friday’s trading session.
Last month, Singing Machine Company reported its financial results for the fiscal year ended March 31, 2012. The Fort Lauderdale, Florida-based company reported net sales of around $25.9 million for the fiscal year ended March 31, 2012, up from $19.1 million reported in the fiscal year ended March 31, 2011. The increase in net sales was mainly due to the company gaining new retail accounts and the overall resurgence of karaoke popularity.
Gross margin for the fiscal year was 21.8%, down from 22.1% reported for the previous fiscal year.
Net income for the fiscal year ended March 31, 2012 was $463,000, compared to a net loss of approximately $599,000 reported for the previous fiscal year.
Gary Atkinson, CEO of Singing Machine, said last month that he is thrilled with positive turnaround SMDM was able to achieve this fiscal year. Atkinson said that the management team at SMDM did an impressive job growing sales and holding gross margin, while maintaining overhead. Atkinson believes that SMDM is well-positioned for the coming year with its experienced management team, seasoned manufacturing relationships in China, and recent success coming off a strong holiday season at retail.
Singing Machine is continuing to look for more sales growth without hurting its margins. According to Bernardo Melo, Vice President of Global Sales and Marketing, SMDM continues to develop and diversify its karaoke assortment to appeal to a wider base of consumers. Melo last month said that SMDM is broadening its entry-level assortment, adding rich features to its Pedestal line of karaoke machines, and developing more iOS-compatible hardware to support the popularity of Apple devices.
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