NIVS IntelliMedia Earnings Review

NIVS IntelliMedia Technology Group (AMEX:NIV) filed its SEC form 10-Q after the market close on 5/19/09, which included a summary of 1Q09 financial results. The Company develops, produces and sells audio and video equipment and set-top box products under an established brand name in China with a customer base that includes both wholesalers and distributors of electronic products on a brand name as well as an original equipment manufacturer ("OEM") basis.

Their products are distributed on a global basis, with China and Asia currently their largest markets. NIV products include digital audio systems, televisions, digital video broadcasting (DVB) set-top boxes and DVD players as well as peripheral products and accessories including remote controls, headphones and portable entertainment devices such as MP3 players.

NIV posted revenue of $29.3 million for 1Q09, which represents and increase of $2.5 million from the year-ago period. The Company attributed the increase in revenue to increased product demand, market expansion efforts, and new product sales of digital equipment and LCD equipment. NIVS posted double-digit sales growth for televisions (up 37.3% from the year-ago period) and standard audio equipment (up 12.4% from the year-ago period). Sales volume growth during 1Q09 was led by televisions, which increased by 7% to 0.7 million pieces from the year-ago period.

Cost of sales (including raw material, labor and manufacturing overhead) were $23.1 million for 1Q09, which is an increase of $2.7 million, or 13.3%, compared to $20.4 million during 1Q08. As a percentage of net revenue, the cost of sales for 1Q09 and 1Q08 was 78.6% and 75.9%, respectively. Gross profit for 1Q09 was $6.3 million, or 21.4% of revenues, as compared to $6.4 million, or 24.1% of revenues, during 1Q08.

Net income was $2.4 million for 1Q09, which represents a decrease of $0.7 million from net income of $3.1 million during 1Q08. NIV ended 1Q09 with an unrestricted cash balance of about $2.2 million, as compared to $0.5 million year-end. The Company reported about $12.7 million in restricted cash as of 1Q09 versus $11.7 million at year-end. The restricted cash balance is held as a security deposit for the Company's recurring, short-term bank notes. The headline EPS for 1Q09 was $0.06 versus $0.11 in the year-ago period. A Pro-Active Research Group report for NIV is available at StockMediaBuzz.com on the Company's landing page.

Disclosure: No positions.