TULSA, Okla. – While the net income of marine and automotive manufacturer Lowrance Electronics, Inc. (NASDAQ:LEIX) took a hit during the third quarter, it achieved record sales, the company reported in a statement today.
The company’s net income for the third quarter ended April 30, 2005, was $6,440,000, or $1.25 per diluted share, compared to $6,671,000, or $1.68 per diluted share, as restated, in the same quarter last year.
Net sales increased 15 percent to a third quarter record $53,200,000, compared to sales of $46,296,000, in the third quarter last year.
For the nine months ended April 30, 2005, net income increased 3 percent to $6,903,000, or $1.41 per diluted share, compared to $6,709,000, or $1.69 per diluted share, as restated, in the same period last year.
Net sales for the nine month period increased 22 percent to $103,321,000, compared to $84,800,000 a year earlier.
"Record third quarter and year-to-date sales are due to the introduction this year of over 50 new SONAR and GPS products, including our new turn-by-turn automotive GPS products," said Darrell Lowrance, president and CEO.
Lowrance noted that, as expected, the company's third quarter gross margin declined to 40 percent of sales from 45 percent of sales in the same quarter last year.
"In the first nine months of fiscal 2005, we have increased research and development, advertising, sales and marketing expenses associated with the launch of the company's new automotive GPS products," said Lowrance.
The company also announced a $0.05 increase in its dividend, to $0.30 per share, payable on June 17, 2005, to shareholders of record on June 10, 2005.
Order backlog increased 118 percent to approximately $14,850,000 at April 30, 2005, compared to backlog of approximately $6,800,000 at April 30, 2004.
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