Staff numbers have been slashed and senior executive salaries cut back after ASX listed consumer electronics and PRO AV distributor Amber Technology, who last week snared the Boston Acoustic brand, reported a 92.2% slump in profits to $126,000 Vs $1.6M in 2010, consumer electronics revenues fell 6.2% to $38M.
During the past 12 months Ambertech has lost the distribution rights to several brands including KEF and Altec Lansing.
The Companies New Zealand business was also in the red after sales fell 46.8% to $2,060,000 (2010: $3,871,000). EBIT was down 205.8% to $164,000 (2010: $155,000).
Overall revenue at Ambertech was up 0.8% to $66,703,000 due primarily to increased revenues in their professional segment which supplies product and services to television stations, radio stations, military and education as well as cinema chains.
Ambertech said that sales of home theatre products and electronics accessories continued to be impacted by cautious consumer spending patterns and that a “depressed” new home building sector continued to impact the Company’s ability to trade profitably.
Currently the Company is on a mission to secure the distribution rights to several products after taking on the Boston Acoustics account last month. Last week Ambertech executives were at the CEDIA show in the USA looking for new products.
Shortly after Amber snared the Boston Acoustics brand from Hi Fi and Video Marketing, they announced that they were closing their business down.
Senior Amber executives who were awarded big increases in their remuneration packages last year despite a poor result have this year seen their remuneration packages fall.
Brian Lee the General Manager of Lifestyle Entertainment saw his package fall $30K from $224K in 2010 to $194K in 2011.
Robert Caston the General Manager of Broadcast & Professional saw his remuneration package fall from $206K in 2010 to $183K in 2011. CEO Peter Amos saw his remuneration package fall $33K from $420K in 2010 to $387K in 2011.
Chairman Peter Wallace said that future trading conditions are forecast to remain difficult in a number of the markets in which Ambertech operates across Australia and New Zealand, particularly where markets are impacted by discretionary household spending.
The Company who laid off several people earlier this year said that they are “currently implementing a number of additional cost reduction measures in order to reflect where we see the current demand for our products in order to improve our results,” said Wallace.
In the 2011/12 financial year the business will be relocating its headquarters; a move that the Company claims will help them reduce costs.