Rockford Corporation (ROFO) announced its sales and net income grew during the recent quarter ended June 30, 2012.
Net sales rose by 12 percent to $19 million and net income increased to $2.1 million, compared to $1.8 million a year ago.
The company’s core aftermarket sales and International sales drove the net sales gains, said Rockford.
OEM royalty revenues declined during the first half of the year to $0.8 million compared to $1.4 million for the period a year ago. The lower royalties led to a slip in gross margin for the quarter (as a percentage of net sales), which fell to 37 percent, from 38.3 percent a year ago.
Rockford’s brands are increasing in strength but the 12 volt retail environment softened in Q2.
“Several retailers and International distributors, however, have reported softer business patterns in the second quarter of 2012 compared to the first quarter of 2012. Our OEM business
remains solid but royalty revenues are down approximately $0.6 million for the first half of 2012. This is primarily due to lower production of Mitsubishi vehicles equipped with Rockford Fosgate branded audio systems,” said CEO and President Bill Jackson.
“In summary, we are pleased with our second quarter and year to date results. Although the market remains challenging, we are cautiously optimistic about the future and are working hard to grow with our partners,” said Jackson.
Rockford also announced another stock buy back program with an offer to repurchase up $8.4 million of common stock. It also expects that its board of directors will shrink from 7 to 5 members as two board members are expected to retire.
Last month, Rockford announced it obtained the exclusive North American distribution rights to Blaupunkt and will begin selling the line through distributors in Q3 or Q4.
Source: Rockford Corporation
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