Directed Electronics released their Q1 2008 financial results today, and reported that net revenue from satellite radio sales are up 14% on a pro-forma basis. Now, readers should be cautioned that this reporting method does not mean that sales of satellite radios are up. It simply means that on a net basis, the company is seeing more dollars.
For Directed, Net sales of Sirius radios represented $17,676,000 for Q1 2008 vs. $15,491,000 for the same period in 2007.
"We believe the change to net reporting of our satellite radio sales coupled with providing our security and entertainment and satellite radio product category margins will ultimately provide increased transparency into the fundamental drivers of our profitability," commented Kevin Duffy, Directed's EVP and CFO. "In the first quarter of 2008, our security and entertainment business comprised approximately 75% of our total pro forma sales but over 90% of our gross profit due to the combination of our strong brands and innovative products which help both our retailers and Directed to earn solid margins."
Position - Long Sirius, XM. No Position Directed.