Friday, May 1, 2009
Phoenix Business Journal
Rockford Corp. put together net income of $25,000 despite a drop in sales during its first quarter.
The Tempe-based maker of audio components (Nasdaq:ROFO) compared favorably with a net loss of $91,000 for the same quarter last year, despite seeing its sales decrease to $14.5 million in the first quarter, compared with $18.4 million for the same time last year.
Sales in its car audio market were to blame for the drop, as consumer spending has dropped significantly during the past two quarters.
“We expect our OEM sales and royalty revenue will remain depressed until our OEM partners begin to increase their own sales,” said William Jackson, the company’s president. “In addition, the global slowdown in consumer spending has hit our aftermarket retailers and distributors.”
Although the market may remain weak and some of Rockford’s loss may have been attributed to the closure of Circuit City, the company was seeing more traffic at its stores.
The company restructured in fourth-quarter 2008, and the results have been positive, Jackson said.
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