Recoton Comments On Anticipated Fourth Quarter Sales
LAKE MARY, Fla.--(BUSINESS WIRE)--Dec. 28, 2000
Recoton Corporation (NASDAQ Stock Market: RCOT), a leading global consumer electronics company today announced that although it expects strong fourth quarter sales from both the Consumer Electronics Accessory and Mobile/Home Audio segments, it is anticipating a fourth quarter revenue shortfall from it's Video Game Segment ranging from 20-25% below that segment's fourth quarter 1999 results.
Robert L. Borchardt, President and CEO of Recoton noted, "We, and others, are very disappointed in the reduced deliveries of Sony's(R) Playstation Two(R) gaming system and with the sales of all video game platforms which appear to be down this holiday season causing a major gaming market revenue shortfall. The Company's InterAct(R) gaming segment remains a leading supplier with a solid market share over the competition for all gaming accessories."
He continued, "We anticipate a strong rebound in 2001 for our video gaming segment based on the expected regular deliveries of PlayStation 2 and PlayStation One combined with the introduction and delivery during 2001 of the new Nintendo(R) Advanced GameBoy(R), GameCube(R) and Microsoft(R) X box systems. This coupled with continued positive growth from our Consumer Electronic Accessory and Audio segments gives us strong expectations for improved performance in 2001."
Recoton Corporation is a global leader in the development, manufacturing and marketing of consumer electronic accessories, loudspeakers and car audio products. Recoton's more than 4,000 products feature highly functional accessories for audio, video, car audio, camcorder, multi-media/computer, home office, cellular and standard telephone, music and video game products and 900 MHz wireless technology headphones and speakers. They are sold under the AAMP(R), Ambico(R), Ampersand(TM), AR(R)/Acoustic Research(R), Discwasher(R), GameShark(R), Parsec(R), Peripheral(R), Performance(TM), Recoton(R), Rembrandt(R), Ross(TM), SoleControl(R), SoundQuest(R) and Stinger(R) brand names, among others. The Company also produces and markets audio components, high fidelity loudspeakers, home theater speakers, and car audio speakers and components which are sold under the Advent(R), AR(R)/Acoustic Research(R), HECO(TM), Jensen(R), MacAudio(TM), Magnat(R), NHT(R) (Now Hear This), Phase Linear(R) and Recoton(R) brand names.
Sony and Sony PlayStation are registered marks of Sony Corporation; Nintendo Gamecube and Nintendo Gameboy are registered marks of Nintendo Corp. of America; and X-Box and Microsoft are registered marks of Microsoft Corporation.
This press release may contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are subject to certain risks and uncertainties that could cause actual results to differ materially from historical earnings and those presently anticipated or projected. Such statements speak only as of the date made. Please refer to the Company's Form 10-K and other SEC filings.
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