0001144204-11-071944.txt : 20111228 0001144204-11-071944.hdr.sgml : 20111228 20111228171135 ACCESSION NUMBER: 0001144204-11-071944 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20111228 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20111228 DATE AS OF CHANGE: 20111228 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HAUPPAUGE DIGITAL INC CENTRAL INDEX KEY: 0000930803 STANDARD INDUSTRIAL CLASSIFICATION: COMPUTER PERIPHERAL EQUIPMENT, NEC [3577] IRS NUMBER: 113227864 STATE OF INCORPORATION: DE FISCAL YEAR END: 1226 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13550 FILM NUMBER: 111284440 BUSINESS ADDRESS: STREET 1: 91 CABOT COURT CITY: HAUPPAUGE STATE: NY ZIP: 11788 BUSINESS PHONE: 5164341600 MAIL ADDRESS: STREET 1: 91 CABOT COURT CITY: HAUPPAUGE STATE: NY ZIP: 11788 8-K 1 v244223_8k.htm FORM 8-K Unassociated Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
 
_____________
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
 
Date of Report:  December 28, 2011
(Date of earliest event reported)
 
HAUPPAUGE DIGITAL INC.
(Exact Name of Registrant as Specified in Charter)
 
Delaware
1-13550
11-3227864
(State or Other Jurisdiction of Incorporation)
(Commission File Number)
(IRS Employer
Identification No.)

91 Cabot Court, Hauppauge, New York  11788
(Address of Principal Executive Offices)   (Zip Code)
 
Registrant's telephone number, including area code: (631) 434-1600
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 
 

 

Item 2.02.
Results of Operations and Financial Condition.

On December 28, 2011, Hauppauge Digital Inc. (the “Company”) issued a news release (the “News Release”) announcing its financial results for the quarter and fiscal year ended September 30, 2011.  A copy of the News Release is furnished as Exhibit 99.1 hereto.

The information in the News Release is being furnished, not filed, pursuant to this Item 2.02.  Accordingly, the information in the News Release will not be incorporated by reference into any registration statement filed by the Company under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference. The furnishing of the information in this Report is not intended to, and does not, constitute a determination or admission by the Company that the information in this Report is material or complete, or that investors should consider this information before making an investment decision with respect to any security of the Company.

Item 9.01.
Financial Statements and Exhibits.
 
(d)
Exhibits.
 
99.1           News Release, dated December 28, 2011, issued by Hauppauge Digital Inc.

 
 

 
 
SIGNATURES
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
Date:  December 28, 2011

 
 
HAUPPAUGE DIGITAL INC.

 
By: /s/ Gerald Tucciarone                                     
Gerald Tucciarone
Chief Financial Officer
 



 
 

 
EX-99.1 2 v244223_ex99-1.htm EXHIBIT 99.1 Unassociated Document
Investor Contacts: Gerald Tucciarone
Chief Financial Officer
631/434-1600, extension 306                                                                           

HAUPPAUGE DIGITAL REPORTS FISCAL 2011
FOURTH QUARTER AND YEAR END RESULTS
 


 
HAUPPAUGE, NY – December 28, 2011 - Hauppauge Digital Inc. (NASDAQ: HAUP), a leading developer of digital video TV and data broadcast receiver products for personal computers, today reported financial results for the fourth fiscal quarter and year ended September  30, 2011.
 
FOURTH QUARTER RESULTS
 
Net sales were $10.3 million for the fourth quarter of fiscal 2011 compared to $11.6 million reported for the previous year’s fourth fiscal quarter.
 
The Company incurred a net loss of $2,075,730 for the fourth quarter of fiscal 2011 compared to a net loss of $1,524,352 for the fourth quarter of fiscal 2010.   Net loss per share for the fourth quarter of fiscal 2011 was $0.21 on a basic and diluted basis, compared to a net loss per share of $0.15 on a basic and diluted basis for the fourth quarter of fiscal 2010.
 
FISCAL YEAR RESULTS
 
Net sales were $42.3 million for the fiscal year ended September 30, 2011 compared to $56.9 million reported for fiscal year ended September 30, 2010.
 
The Company incurred a net loss of $5,849,072 for fiscal year ended September 30, 2011 compared to a net loss of $1,846,560 for the fiscal year ended September 30, 2010.  The results for the fiscal year ended September  30, 2010  reflected a reduction in accrued expenses fees of about $2.25 million for settlements  and changes in estimates.  Net loss per share for the fiscal year ended September 30, 2011 was $0.58 on a basic and diluted basis, compared to a net loss per share of $0.18 on a basic and diluted basis for the fiscal year ended September 30, 2010.
 
 
 

 
DISCUSSION OF RESULTS
 
Ken Plotkin, Hauppauge’s Chief Executive Officer stated “Fiscal 2011 was a challenging year for the Company.  Sales into Europe, which historically has been our strongest region for our TV tuner products, slowed dramatically. The slowdown affected southern Europe, including Spain and Italy, but also included previously strong markets, such as Germany.
 
In 2011, we began transitioning our product portfolio from lower-end TV tuner products to higher-end video recorder, video streaming and digital TV tuner products with the introduction of ‘Colossus’, a high definition video recorder, ‘Broadway’, our live TV streaming products for the iPad and iPhone, our HD-PVR Gaming Edition, and our WinTV-DCR-2650 dual tuner CableCARD receiver. The WinTV-DCR-2650 allows a PC user in the United States to connect to their digital cable TV signal and watch or record up to two programs at a time.
 
We believe the repositioning of our product offerings will result in future benefits for the Company.
 
In recognition of the impact of the sales transition, during the second half of fiscal 2011, the Company implemented an expense reduction plan in order to bring the overhead expense level more in line with our current sales. We have closed some offices and reduced personnel levels in other offices.
 
The Company believes that the effect of this expense reduction plan coupled with the sales transition of our product portfolio will have a positive effect on our operations starting with the first quarter of fiscal 2012”.
 
ABOUT HAUPPAUGE DIGITAL
 
Hauppauge Digital Inc. is a leading developer of TV receivers, video recorders, Internet video streaming devices and other products for the personal computer market. Through its Hauppauge Computer Works, Inc., Hauppauge Digital Europe Sarl and PCTV Systems Sarl subsidiaries, the Company designs, develops, manufactures and markets products which record video from cable TV, satellite set top boxes and video game consoles, plus analog, digital and other types of TV tuners and devices that allow PC users to watch television on a PC screen in a resizable window. Certain of the Company’s products also enable the recording of TV shows to a PCs’ hard disk, receiving of digital TV data transmissions, and the display of digital media stored on a computer to a TV set and other mobile devices via a home network.  The Company is headquartered in Hauppauge, New York. with administrative offices in Luxembourg, Ireland and Singapore, sales offices in Germany, London, Paris, The Netherlands, Sweden, Italy, Spain, Singapore, Taiwan and California and research and development centers in Hauppauge, New York, Braunschweig, Germany and Taipei, Taiwan.  The Company’s Internet web site can be found at http://www.hauppauge.com.
 
 
 

 
 
This news release contains forward-looking statements as that term is defined in the federal securities laws.  The events described in forward-looking statements contained in this may not occur.  Generally these statements relate to business plans or strategies, projected or anticipated benefits or other consequences of our plans or strategies, financing plans, projected or anticipated benefits from acquisitions that we may make, or projections involving anticipated revenues, earnings or other aspects of our operating results or financial position, and the outcome of any contingencies.  Any such forward-looking statements are based on current expectations, estimates and projections of management.  We intend for these forward-looking statements to be covered by the safe-harbor provisions for forward-looking statements.  Words such as “may,” “will,” “expect,” “believe,” “anticipate,” “project,” “plan,” “intend,” “estimate,” and “continue,” and their opposites and similar expressions are intended to identify forward-looking statements.  We caution you that these statements are not guarantees of future performance or events and are subject to a number of uncertainties, risks and other influences (including, but not limited to, those set forth in “Item 1A–Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended September 30, 2011), many of which are beyond our control, that may influence the accuracy of the statements and the projections upon which the statements are based.  Any one or more of these uncertainties, risks and other influences could materially affect our results of operations and whether forward-looking statements made by us ultimately prove to be accurate.  Our actual results, performance and achievements could differ materially from those expressed or implied in these forward-looking statements.  We undertake no obligation to publicly update or revise any forward-looking statements, whether from new information, future events or otherwise.  All cautionary statements made in this news release should be read as being applicable to all related forward-looking statements wherever they appear.
 

[Financial Table Follows]
 
 
 

 
 
HAUPPAUGE DIGITAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
 
    Three months ended September 30,   
     2011     2010  
             
Net  sales
  $ 10,276,534     $ 11,599,662  
Cost  of  sales
    7,434,039       8,196,541  
 Gross profit
    2,842,495       3,403,121  
                 
Selling, general and  administrative expenses
    3,924,731       3,762,993  
Research & development expenses
    1,040,842       1,200,254  
Loss  from operations
    (2,123,078 )     (1,560,126 )
Other  income :
               
  Interest income
    1,881       1,037  
  Foreign currency
    8,723       14,132  
Total  other  income
    10,604       15,169  
Loss before tax provision
    (2,112,474 )     (1,544,957 )
Current  tax provision
    58,964       45,748  
Deferred tax benefit
    (95,708 )     (66,353 )
Net loss
  $ (2,075,730 )   $ (1,524,352 )
                 
Net loss per share-basic and diluted
  $ (0.21 )   $ (0.15 )
                 
Weighted average shares-basic and diluted
    10,122,344       10,072,625  


 
 

 


HAUPPAUGE DIGITAL  INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS

    Twelve months ended September 30,   
    2011     2010  
                 
Net sales
  $ 42,343,059     $ 56,918,617  
Cost  of  sales
    29,262,521       38,486,848  
Gross  profit
    13,080,538       18,431,769  
                 
Selling, general and  administrative expenses
    14,486,996       15,579,080  
Research & development expenses
    4,258,023       4,458,915  
Loss  from operations
    (5,664,481 )     (1,606,226 )
Other  income (expense):
               
  Interest income
    10,450       5,373  
  Interest expense
    -       (4,340 )
  Foreign currency
    6,268       227,902  
Total other  income (expense)
    16,718       228,935  
Loss before tax provision
    (5,647,763 )     (1,377,291 )
Current income tax provision
    197,309       205,022  
Deferred tax provision
    4,000       264,247  
      Net loss
  $ (5,849,072 )   $ (1,846,560 )
                 
Net loss per share-basic and diluted
  $ (0.58 )   $ (0.18 )
                 
 Weighted average shares-basic and diluted     10,108,670       10,066,637  


 
 

 

 
HAUPPAUGE DIGITAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
 
 
September 30,
   
September 30,
 
 
 
2011
   
2010
 
 Assets:
 
 
       
             
 Current Assets:
 
 
   
 
 
     Cash and cash  equivalents
  $ 4,080,537     $ 7,057,904  
     Accounts receivables, net of various allowances
    3,708,696       4,403,194  
     Other non trade receivables
    2,408,326       2,355,834  
     Inventories
    10,092,224       11,450,565  
     Deferred tax asset current
    1,127,641       1,310,204  
     Prepaid expenses and other current assets
    992,258       980,087  
                Total current assets
    22,409,682       27,557,788  
                 
     Intangible assets, net
    3,186,430       3,941,266  
     Property, plant and equipment, net
    368,703       544,959  
     Security deposits and other non current assets
    112,813       106,241  
     Deferred tax asset non current
    789,297       610,734  
 
  $ 26,866,925     $ 32,760,988  
                 
 Liabilities and  Stockholders’  Equity :
               
                 
 Current Liabilities:
               
    Accounts payable
  $ 6,674,900     $ 7,306,221  
    Accrued expenses –fees
    4,082,719       4,955,540  
    Accrued expenses
    11,417,895       10,266,495  
    Income taxes payable
    242,201       252,090  
              Total current liabilities
    22,417,715       22,780,346  
 
               
 Stockholders' Equity
               
Common stock $.01 par value; 25,000,000 shares authorized,
               
10,882,823 and 10,842,274 issued, respectively
    108,828       108,423  
Additional paid-in capital
    18,187,595       17,739,330  
Retained deficit
    (6,899,958 )     (1,050,886 )
Accumulated other comprehensive  loss
    (4,541,707 )     (4,410,677 )
Treasury Stock  at cost, 760,479 shares
    (2,405,548 )     (2,405,548 )
             Total stockholders' equity
    4,449,210       9,980,642  
    $ 26,866,925     $ 32,760,988  
 
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