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One Franklin Plaza
Burlington, NJ 08016-4907
Frank A. Musto
Chief Financial Officer
FOR IMMEDIATE RELEASE
FRANKLIN ELECTRONIC PUBLISHERS REPORTS
STRONG YEAR ON YEAR RESULTS
BURLINGTON, NEW JERSEY June 9, 2008 Franklin Electronic Publishers, Incorporated (AMEX:FEP), a world leader in electronic handheld information, today reported a $5,715,000 improvement in results of operations resulting in net income of $2,535,000, or $0.31 per share, for the fiscal year ended March 31, 2008 from a net loss in the prior year of $3,180,000, or $0.39 per share. Sales for the fiscal year increased by $4,868,000, or 9%, to $57,081,000 compared with $52,213,000 reported last year. Each operating division contributed increased sales year on year, with the largest increase reported by the Companys European business operations, followed by the Companys Australian subsidiary. Overseas sales benefited from the weaker U.S. dollar, primarily in contrast to the euro. Gross margin contribution increased by 4% to 50%, up from the 46% reported last year. The lower gross margin percentage in the prior year resulted from mark down allowances for some under performing SKUs, promotion allowances granted to certain customers in North America, higher software amortization associated with the release of certain new products, and inventory valuation provisions primarily related to one product.
Total revenue for the fiscal year ended March 31, 2008 of $60,581,000 included $3,500,000 reflected as other operating revenue that the Company received from two distribution partners, Seiko Instruments, Inc. (SII) and Seiko U.K. Ltd. During the second quarter, the Company received $3,000,000 from SII in consideration for the elimination of minimum purchase commitments in the agreements under which SII distributes Franklin products in Japan and Franklin distributes SII products in the United States and Germany. During the fourth quarter of the fiscal year, Franklin entered into an agreement with Seiko U.K. Ltd. calling for a one-time payment of $500,000 to be made to Franklin in consideration for the extension of the distribution agreement under which Seiko U.K. Ltd. distributes Franklin products in the United Kingdom and Ireland. The benefit to net income for the fiscal year ended March 31, 2008 from these payments from SII and Seiko U.K. Ltd., after deducting related costs, was approximately $2,780,000. Such costs are reflected in operating expenses. Also, during the March quarter, the
The following information was filed by Franklin Electronic Publishers Inc on Tuesday, June 10, 2008 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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