Planar Reports Fiscal Q4 and Full Year 2014 Financial Results
Gail Chiasson, North American Editor
Digital signage played a big role in Planar System ’s 2014 fiscal year, showing a 36% increase in sales.
Planar Systems Inc., Beaverton, Oregon-based display and digital signage technology, today (Nov. 5/14) reported financial results for the fiscal fourth quarter and year ended September 26, 2014.
Highlights of Q4 include:
- Digital Signage product sales increased 18% from the prior quarter and 42% from the same year-ago quarter to $25.2 million.
- Commercial and Industrial product sales increased 26% from the prior quarter and 2% from the same year-ago quarter to $28.4 million.
- Non-GAAP net income totaled $3.1 million, an big improvement from $1.0 million in the same year-ago quarter.
Total revenue increased 17% year on year to $53.6 million compared to the fourth quarter of fiscal 2013. Revenue was driven by a 42% increase in sales of DS products, which totaled $25.2 million in the fourth fiscal quarter of 2014, compared to $17.7 million in the same period a year ago. Sales of C&I products increased 2% to $28.4 million compared to $28.0 million in the fourth quarter of fiscal 2013.
Consolidated gross profit margin as a percentage of sales (on a non-GAAP basis) was 26%, an increase from 22% in the fourth quarter of 2013. The improvement was due to an increase in sales of higher margin digital signage products, as well as higher gross profit rates on sales of digital signage products compared to the prior year-ago quarter.
Non-GAAP operating expenses were $10.7 million compared to $9.1 million in the same quarter last year, primarily due to higher sales and marketing expenses.
GAAP net income totaled $2.2 million, an improvement from a GAAP net loss of $207,000 in the fourth quarter of fiscal 2013.
Non-GAAP net income totaled $3.1 million, an improvement from non-GAAP net income of $1.0 million.
In terms of the full fiscal 2014 Financial Results, total revenue increased 7% to $179.0 million compared to fiscal 2013, driven by a 36% increase in the sale of digital signage products, which totaled $84.5 million compared to $62.1 million a year ago. The increase in total revenue was partially offset by a 10% decrease in sales of C&I products to $94.5 million compared to fiscal 2013. The anticipated decrease in C&I revenue was primarily due to lower sales of touch monitors and high-end home products, partially offset by higher sales of custom C&I displays.
Highlights of Fiscal 2014 full year:
- Consolidated gross profit margin as a percentage of sales (on a non-GAAP basis) increased to 25% from 22% in the fiscal year of 2013.
- Non-GAAP operating expenses were $38.5 million compared to $37.6 million in fiscal 2013. The increase was primarily due to higher sales and marketing expenditures.
- GAAP net income totaled $3.8 million, an improvement from a GAAP net loss of $6.5 million in fiscal 2013
- Non-GAAP net income totaled $5.8 million, a significant improvement from non-GAAP net income of $387,000 in fiscal 2013.
“In fiscal 2014, we made significant progress on our strategic transformation into a higher-growth and more profitable company,” says Gerry Perkel, the company’s president and CEO. “This was evident from the several milestones we achieved for the year, including record digital signage product sales, significant gross profit improvement, and company-wide profitability.
“Looking ahead, our expectations for fiscal 2015 remain high as we build on the operational and financial momentum we achieved last year. We continue to expect strong growth in our digital signage products, which we believe will drive higher gross profits and EPS expansion.”
Planar expects to see continued strong revenue growth from digital signage and custom C&I products in the fiscal first quarter of 2015. Therefore, the company anticipates revenue in the fiscal first quarter of 2015 to range between $55 million and $58 million, which would represent total revenue growth of 36% to 43% compared to the first fiscal quarter of 2014.
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