TARGET: $12 - $16
- ONLY 4.5M SHARE FLOAT...10.5M O/S SHARES...NEW 1.2M SHARE BUYBACK PROGRAM
- RECORD 4Q AND RECORD FY REPORTED LAST WEEK...DOUBLE DIGIT PROFITABLE GROWTH
- NEW BLOCKBUSTER HD DVR TECHNOLOGY/PRODUCTS TO BE UNVEILED AT CES SHOW
***** EARNINGS SUMMARY... as reported 12/27/2007 *****:
- Record 4Q 2007 Revenues of $27.5M vs. $22.1M in 4Q 2006.....a 24% Increase
- Record FY 2007 Revenues of $110.9M vs. $99.7M for FY 2006.....a 13% Increase
- Record 4Q 2007 net income of $1.64M vs.4Q 2006 net income of $51K. Without a tax benefit of $1.49M, HAUP earned a record $154 in its weakest quarter. This is a 202% increase in net income. 4Q 2007 net income was affected by a $212K increase in R&D compared to 4Q 2006 to make a quick shift to all-digital products and for MSFT Vista compliance.
- Record FY 2007 net income of $5.3M or 51c/share diluted vs. $2.4M or 24c/share for FY 2006. Without the 4Q 2007 tax benefit FY 2007 net income was 39c/share. This is a 58% increase over 2006.
- Cash at the end of 2007 was $11.6M vs. 9M at the end of 2006.
- Cash would have been higher at the end of 2007 by over $700K because during 2007 HAUP repurchased 142K shares in the open market. HAUP announced in August 2007 a 1.2M share buyback.
Other HAUP Highlights:
- Market cap: $48M
- $1.2/share cash....ZERO debt
- 4.5M share float
- P/E about 10
- P/S less than 0.5
- Consistent double-digit profitable growth
- No dilution since 1997
- Leader in digital PC tuners worldwide
HAUP CEO Keneth Plotkin made these comments about 4Q and FY 2007 Performance:
DISCUSSION OF RESULTS
Ken Plotkin, Hauppauge’s Chief Executive Officer, stated, “In 2007, we saw a rapid switch in market demand from our mainstream WinTV-PVR analog TV receivers to our newer digital WinTV-HVR products. In 2006, the WinTV-PVR product line accounted for over 65% of our sales. But in 2007, the WinTV-PVR products dropped to only 10% of sales. In North America, this change in demand was due primarily to the U.S. F.C.C. imposed discontinuation of analog TV receivers, while in Europe, the rapid switch to digital receivers was a natural result of the fact that, by 2007, most countries had started digital TV broadcasts.
“Though the speed of this shift to our new WinTV-HVR digital products was unexpected, our sales and production team did an excellent job in making this product transition smooth.
“Though the start was slow, over the course of the year, Hauppauge saw a growing acceptance of Microsoft’s new Vista operating system. The Company put more of it’s U.S. and Taiwan engineering resources into developing products which make use of Vista’s TV watching and recording capabilities. During fiscal 2007, we introduced seven new products, the WinTV-HVR-1250, WinTV-HVR1500, WinTV-HVR-1600 and WinTV-HVR1800 for the North American market, and the WinTV-HVR-1200, WinTV-HVR-1400 and WinTV-HVR-1750 for the European market. All of these products are Microsoft Premium certified to run under the Microsoft Vista operating system.
"The combination of the sales growth of our WinTV products for Vista, coupled with a modest increase in our expenses, resulted in operating income for the year increasing 58%.”
Mr Plotkin also noted that, in the third and fourth quarters of fiscal 2007, the Company purchased 142,032 of Company shares on the open market, pursuant to its stock repurchase plan.
More on HAUP:
HAUP's biggest quarter ending December 31, 2007 will be reported in mid February 2008.
HAUP has been enjoying consistent double digit revenue grow for several consecutive quarters. One reasons is that it is a global company and its financial performance does not depend on a particular region of the world.
HAUP's digital tuners are now integral part of many OEM products , and blue chips such as MSFT, AAPL, and DELL.
- ONLY 4.5M SHARE FLOAT...10.5M O/S SHARES...NEW 1.2M SHARE BUYBACK PROGRAM
- RECORD 4Q AND RECORD FY REPORTED LAST WEEK...DOUBLE DIGIT PROFITABLE GROWTH
- NEW BLOCKBUSTER HD DVR TECHNOLOGY/PRODUCTS TO BE UNVEILED AT CES SHOW
***** EARNINGS SUMMARY... as reported 12/27/2007 *****:
- Record 4Q 2007 Revenues of $27.5M vs. $22.1M in 4Q 2006.....a 24% Increase
- Record FY 2007 Revenues of $110.9M vs. $99.7M for FY 2006.....a 13% Increase
- Record 4Q 2007 net income of $1.64M vs.4Q 2006 net income of $51K. Without a tax benefit of $1.49M, HAUP earned a record $154 in its weakest quarter. This is a 202% increase in net income. 4Q 2007 net income was affected by a $212K increase in R&D compared to 4Q 2006 to make a quick shift to all-digital products and for MSFT Vista compliance.
- Record FY 2007 net income of $5.3M or 51c/share diluted vs. $2.4M or 24c/share for FY 2006. Without the 4Q 2007 tax benefit FY 2007 net income was 39c/share. This is a 58% increase over 2006.
- Cash at the end of 2007 was $11.6M vs. 9M at the end of 2006.
- Cash would have been higher at the end of 2007 by over $700K because during 2007 HAUP repurchased 142K shares in the open market. HAUP announced in August 2007 a 1.2M share buyback.
Other HAUP Highlights:
- Market cap: $48M
- $1.2/share cash....ZERO debt
- 4.5M share float
- P/E about 10
- P/S less than 0.5
- Consistent double-digit profitable growth
- No dilution since 1997
- Leader in digital PC tuners worldwide
HAUP CEO Keneth Plotkin made these comments about 4Q and FY 2007 Performance:
DISCUSSION OF RESULTS
Ken Plotkin, Hauppauge’s Chief Executive Officer, stated, “In 2007, we saw a rapid switch in market demand from our mainstream WinTV-PVR analog TV receivers to our newer digital WinTV-HVR products. In 2006, the WinTV-PVR product line accounted for over 65% of our sales. But in 2007, the WinTV-PVR products dropped to only 10% of sales. In North America, this change in demand was due primarily to the U.S. F.C.C. imposed discontinuation of analog TV receivers, while in Europe, the rapid switch to digital receivers was a natural result of the fact that, by 2007, most countries had started digital TV broadcasts.
“Though the speed of this shift to our new WinTV-HVR digital products was unexpected, our sales and production team did an excellent job in making this product transition smooth.
“Though the start was slow, over the course of the year, Hauppauge saw a growing acceptance of Microsoft’s new Vista operating system. The Company put more of it’s U.S. and Taiwan engineering resources into developing products which make use of Vista’s TV watching and recording capabilities. During fiscal 2007, we introduced seven new products, the WinTV-HVR-1250, WinTV-HVR1500, WinTV-HVR-1600 and WinTV-HVR1800 for the North American market, and the WinTV-HVR-1200, WinTV-HVR-1400 and WinTV-HVR-1750 for the European market. All of these products are Microsoft Premium certified to run under the Microsoft Vista operating system.
"The combination of the sales growth of our WinTV products for Vista, coupled with a modest increase in our expenses, resulted in operating income for the year increasing 58%.”
Mr Plotkin also noted that, in the third and fourth quarters of fiscal 2007, the Company purchased 142,032 of Company shares on the open market, pursuant to its stock repurchase plan.
More on HAUP:
HAUP's biggest quarter ending December 31, 2007 will be reported in mid February 2008.
HAUP has been enjoying consistent double digit revenue grow for several consecutive quarters. One reasons is that it is a global company and its financial performance does not depend on a particular region of the world.
HAUP's digital tuners are now integral part of many OEM products , and blue chips such as MSFT, AAPL, and DELL.
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