Singing Machine reports Q1 EPS (37c) vs (96c) last year

Reports Q1 revenue $2.426M vs $3.383M last year. “We are pleased to report our first quarter results of operations,” commented Gary Atkinson, CEO of the Singing Machine. “We have focused on three core areas of operations, which we believe will lead to overall improved profitability in the coming quarters: 1) Improved product sales mix. We are focused on selling more of our higher price-point, best-in-class karaoke products that support our music subscription model. This is expected to improve sell-through rates, reduce marketing expenses, and improve gross margins going forward. 2) Reduce fixed overhead. With the closure of our California warehouse lease and our shift to a fully outsourced 3PL model, we were able to reduce headcount, eliminate our occupancy costs in California, and switch to a more variable operating structure. 3) Strict Cost Control. We have aggressively worked to identify areas where we can reduce recurring operating expenses, particularly in the areas of IT infrastructure, headcount, and occupancy.”