Fiscal Q3, 2015 @PlanarSystems Financial Results
Gail Chiasson, North American Editor
Planar Systems Inc., Beaverton, Oregon, display and digital signage technology company, reported financial results for the fiscal third quarter ended June 26, 2015, noting that its Digital Signage product sales were up 19% to $25.3 million and 60% of total revenue.
During Q3, Planar DirectLight LED Video Wall System won four industry awards at InfoComm 2015, including Best Digital Signage Hardware. During the same third quarter, Plannar added more than 50 new resellers to Planar’s reseller network.
The company’s total revenue decreased to $42.5 million, compared to $43.9 in Q3, 2014. The decrease in total revenue was primarily due to a 24% decrease in sales of the company’s Commercial & Industrial (C&I) products, which totaled $17.2 million (or 40% of total revenue) compared to $22.5 million (or 51% of total revenue) in the same year-ago period.
The decrease was partially offset by the 19% increase in sales of the company’s DS products, whose total $25.3 million (or 60% of total revenue) showed a considerable increase compared to $21.4 million (or 49% of total revenue) in the same year-ago period.
Consolidated gross profit margin as a percentage of sales was 26.9%, an improvement from 24.4% in the third quarter of fiscal 2014. The increase was due to a change in the mix of products sold towards higher margin DS products as well as higher gross profit rates on sales of DS products compared to the same quarter a year ago.
“We are pleased that our third quarter results were somewhat better than our expectations in terms of profits and that once again we achieved double digit growth in our digital signage product lines,” said Gerry Perkel, Planar’s president and CEO. “Our performance during the third quarter reflected our continued progress in transforming our business model enabling a more profitable and higher-growth company.
“Our success in growing sales of our digital signage products is the result of our go-to-market strategy that includes a steady flow of innovative new products. Along those lines, our new DirectLight LED Video Wall System continues to garner industrywide acclaim and customer interest for its exquisite visual performance in mission-critical, 24/7 environments.
“We entered the final quarter of our fiscal year achieving another milestone, as we began shipping DirectLight to initial customers. We expect to continue to convert the growing interest in DirectLight into meaningful customer orders through the remainder of the year and onward. We believe there exists the potential for strong, long-term growth for indoor LED video walls, and we are well positioned to capitalize on that growth.
“Looking ahead, fiscal 2015 remains on track to be a year of significant profit improvement, with the growth in Digital Signage revenue supporting improved profitability,” said Perkel. “We expect our expanding product portfolio and strong sales pipeline to drive further improvement in fiscal 2016.”
Given the company’s current orders and sales pipeline, management expects fiscal fourth quarter 2015 revenue to be between $49 million and $51 million Gross profits were $11.4 million, compared to $10.7 mullion in Q3, 2014. For the full fiscal year 2015, revenue is expected to be between $196 million and $198 million, which would represent an increase of 10% to 11% compared to fiscal 2014. Non-GAAP net income for fiscal 2015 is expected to range between $0.37 and $0.39 per diluted share, which would represent an increase of 37% to 44% compared to $0.27 per diluted share in fiscal 2014.
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