SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
September 9, 1999
Date of Report (Date of Earliest Event Reported)
THE SINGING MACHINE COMPANY, INC.
(Exact name of Registrant as specified in its charter)
Delaware
(State or Other Jurisdiction of Incorporation)
0-24968 95-3795478
(Commission File Number) (IRS Employer Identification No.)
6601 Lyons Road, Building A-7, Coconut Creek, Florida 33073
(Address of Principal Executive Offices)
(954) 596-1000
(Registrant's Telephone Number)
(Former Name or Former Address, if changed since last report)
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DISCLOSURE REGARDING FORWARD-LOOKING STATEMENTS
This Form 8-K includes "forward-looking statements" within the
meaning of various provisions of the Securities Act. All
statements, other than statements of historical facts, included in
this Form 8-K that address future activities, events or
developments, including such things as future revenues, product
development, market acceptance, responses from competitors, capital
expenditures (including the amount and nature thereof), business
strategy and measures to implement strategy, competitive strengths,
goals, expansion and growth of the Company's and its subsidiaries'
business and operations, plans, references to future success and
other such matters, are forward-looking statements. These
statements are based on certain assumptions and analysis made by
the Company in light of its experience and its assessment of
historical trends, current conditions and expected future
developments as well as other factors it believes are appropriate
in the circumstances. However, whether actual results will conform
to the Company expectations and predictions is subject to a number
of risks and uncertainties that may cause actual results to differ
materially, including the risks and uncertainties discussed in this
Form 8-K; general economic, market or business conditions; the
opportunities (or lack thereof) that may be presented to and
pursued by the Company; competitive actions by other companies;
changes in laws or regulations; and other factors; many of which
are beyond the control of the Company. Consequently, all of the
forward-looking statements made in this Form 8-K are qualified by
these cautionary statements and there can be no assurance that the
actual results anticipated by the Company will be realized or,
event if substantially realized, that they will have the expected
consequences to or effects on the Company or its business or
operations.
Item 5. Other Events.
The Singing Machine Co., Inc. announced that its sales for the year
ended March 31, 1999, increased 58% to $9,547,816 from $6,056,101
for the prior year. In addition, the Company recorded net income
of $.36 per fully diluted share or $924,156 for the fiscal year
ended March 31, 1999, compared to a loss from operations of ($.72)
per share or ($1,784,762) for the year 1998. The growth of the CD
plus graphics electronic karoake machines far surpassed the
Company's internal projections. This has continued into the
current fiscal year as the orders placed by customers have grown to
$15,500,000 from $8,100,000 at August 31, 1999, as compared to the
same period a year ago. The Company's family of products has
enabled the Company to dramatically broaden the number of retailers
and distributors of its products. The CD plus graphics machines
are now in their fourth year of sales in the United States. This
new technology has lowered the retail price point and made the
products more user friendly. The mass markets are reacting
favorably to these two developments. The Company is also
benefitting from its emphasis on the sales of music software for
its machines. The number of retailers and distributors ordering
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from the Company's software library of over 2,700 titles is
increasing as the number of CD plus graphics machines sold
increases. The Company is the only major company specializing in
the karaoke category that offers complete lines of hardware
(machines) as well as software (music).
Historically, the Company's operations have been seasonal, with the
highest net sales occurring in the second and third quarters. In
keeping with the Company's historical sales patterns, sales for the
first quarter of fiscal 2000 were $1,589,713, essentially flat when
compared to the prior year of $1,650,782. However, net income
increased nearly 60% to $39,482, but fully diluted per share
earnings were flat at $.01 per share with weighted average for
outstanding shares increasing to 3,312,500 from 2,498,451 shares.
Additionally, the present orders placed by the Company's customers
as of August 31, 1999 were $15,500,000, which is a strong indicator
that sales and net income will increase dramatically in the fiscal
2000 year.
The Company's financial condition improved significantly with
current assets growing to $2,760,447 from $1,813,098 as of March
31, 1999. Net worth increased to $2,379,682 as compared to
$964,740 at March 31, 1999. This has enabled the Company to have
greater product financing capability, which was further enhanced by
the recent increase in credit lines, as evidenced by the recent
Bank Julius Baer & Co., LTD. $1,000,000 letter of credit line that
the Company announced last week.
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SIGNATURES
Pursuant to the requirement of the Securities and Exchange Act
of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
THE SINGING MACHINE COMPANY, INC.
September 9, 1999 By:/s/ John Klecha
John Klecha, Secretary
