Boston Acoustics Announces Preliminary Fourth Quarter Results.Business/Technology Editors PEABODY, Mass.--(BUSINESS WIRE)--April 9, 2001 Boston Acoustics Founded in 1979, Boston Acoustics is a high end manufacturer of home and mobile audio equipment operated out of Peabody, Massachusetts. Boston produces speakers for the home and cars. , Inc. (NASDAQ-BOSA) announced today that sales for the Fiscal Fourth Quarter ended March 31, 2001 decreased compared to the same quarter a year ago. The Company attributed the decrease to the slowing economy and to the industry-wide decline in sales in its two business segments: home and car entertainment products and multimedia speakers for personal computers. The Company anticipates that the sales decrease combined with write-offs for obsolete inventory Obsolete Inventory Term that refers to inventory that is at the end of its product life cycle and has not seen any sales or usage for a set period of time usually determined by the industry. This type of inventory has to be written down and can cause large losses for a company. , inventory rework re·work tr.v. re·worked, re·work·ing, re·works 1. To work over again; revise. 2. To subject to a repeated or new process. n. , and restructuring charges restructuring charge The expense of reorganizing a company's operations. A restructuring charge is an infrequent expense that generally results from asset writedowns or facility closings. will result in a loss of under $1 million dollars for the quarter, but a profit for the year. For the Fiscal Year ending March 31, 2001, Boston Acoustics will earn a profit over $4.2 million dollars and have a book value of approximately $8 per share. Boston Acoustics also announced additional cutbacks in personnel, reflecting both the downturn in sales and improvements in its operations. By the end of the fiscal quarter, the Company had downsized from 389 to 327 people. CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Andy Kotsatos stated, "Although no one knows how long the current economic climate will last, we are restructuring to deal with it. We have streamlined manufacturing. We have reduced raw material inventories, vacated an off-site warehouse and eliminated its cost. For the coming year we are reducing our Operating Expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. to be commensurate with sales. In short, our goals are to improve productivity, inventory turns and profits." The Company plans to announce its fourth quarter and yearend earnings on or about May 21, 2001. Certain statements in this press release contain forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. about Boston Acoustics' operations, economic performance and financial condition. Such forward-looking statements are based on a number of assumptions and involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Boston Acoustics to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Factors that could cause such differences include, but are not limited to, those discussed in the Company's Annual Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended March 25, 2000. The words "believe," "expect," "anticipate," "intend," and "plan" and similar expressions identify forward-looking statements, which speak only as of the date the statement was made. |
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