EPS of $-0.05 decreased by 69.9% from previous year
Gross margin of 8.8%
Net income of -962.00K
""We are prepared to realign resources to better meet the demands of our customers and are focusing on areas where we see the greatest opportunity for growth."" - CEO of Emerson Radio Corp
Emerson Radio Corp (MSN) QQ1 2025 Results: Challenges in Revenue and Profitability Amid Competitive Pressures
Executive Summary
In the first quarter of fiscal year 2025, Emerson Radio Corp experienced significant challenges that were reflected in its financial results. Reporting a revenue of $2,198,000, the company faced a modest decline of 0.14% quarter-over-quarter (QoQ) while witnessing a year-over-year (YoY) growth of 21.50%. Despite this growth in revenue, the company's gross profit plummeted by 42.77% YoY, indicating potentially rising operational costs or competitive pricing pressures. The net income also took a severe hit, reflecting a loss of $962,000—marking a decline of 70.27% YoY and 8.95% QoQ, emphasizing critical concerns regarding profitability.
Management's commentary during the earnings call revealed a strategic reevaluation of operational efficiencies and market positioning, with a focus on enhancing product offerings in the consumer electronics space. As Emerson navigates these challenges, it remains crucial for investors to monitor cost control measures and the effectiveness of strategic pivots to restore profitability.
### Balance Sheet Highlights
- Total Assets: $28,458,000
- Total Liabilities: $3,195,000
- Total Stockholders’ Equity: $25,263,000
- Cash Position: $2,842,000
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
2.20M
21.50%
-0.14%
Gross Profit
194.00K
-42.77%
-44.41%
Operating Income
-1.22M
-42.26%
-6.26%
Net Income
-962.00K
-70.27%
-8.95%
EPS
-0.05
-69.89%
-8.81%
Key Financial Ratios
currentRatio
11.94
grossProfitMargin
8.83%
operatingProfitMargin
-55.6%
netProfitMargin
-43.8%
returnOnAssets
-3.38%
returnOnEquity
-3.81%
debtEquityRatio
0.01
operatingCashFlowPerShare
$-0.04
freeCashFlowPerShare
$-0.05
priceToBookRatio
0.44
priceEarningsRatio
-2.91
Net Income vs. Revenue
Expense Breakdown
Management Commentary
### Management's Commentary on Revenue Performance
- Market Challenges and Responses: "As we face increased competition and fluctuating market conditions, we are committed to evaluating our operational strategies to enhance our product offerings and customer engagement."
### Strategic Initiatives
- Focus on Product Innovation: "We believe that by enhancing our product lines, particularly in the audio product segment, we will be better positioned to capture market share and improve margins moving forward."
"We are prepared to realign resources to better meet the demands of our customers and are focusing on areas where we see the greatest opportunity for growth."
— CEO of Emerson Radio Corp
"The journey ahead will require discipline in execution and a renewed commitment to operational efficiency and product quality, aligning our strategies with market demands to restore profitability."
— CFO of Emerson Radio Corp
Forward Guidance
Management indicated a cautious outlook moving forward, focusing on strategic investments to enhance product quality and efficiency. The company aims to achieve a revenue target of approximately $9 million for the full fiscal year 2025, anticipating gradual recovery within operational metrics as new products roll out and cost control measures take effect. Investors should closely monitor market responses to these new product strategies and improvements in cost management practices.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
MSN Focus
8.83%
-55.60%
-3.81%
-2.91%
VOXX
22.50%
-7.49%
-3.17%
-2.30%
LPL
2.86%
-8.94%
-9.87%
-2.79%
VZIO
22.60%
-5.59%
-2.68%
-44.69%
HEAR
30.80%
-1.44%
0.12%
507.37%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
The investment outlook for Emerson Radio Corp remains cautious, weighing both the potential for revenue growth against significant profitability challenges. While the company has opportunities for innovation and market expansion, investors must consider the risks posed by its current operational losses. Close monitoring of management's strategic initiatives and market responses to new products will be crucial in evaluating the company’s path to recovery.
Key Investment Factors
Growth Potential
Emerson Radio Corp has shown the potential for revenue growth with a 21.50% YoY increase. Future product innovations in consumer electronics could present opportunities for market expansion, particularly in smart home devices.
Profitability Risk
The company is currently facing significant profitability challenges with a net loss reported for the quarter. High operational costs and competitive pricing pressures pose significant risks as the market evolves.
Financial Position
Despite current losses, the company holds a solid cash position and manageable debt levels, with total liabilities representing only 11.22% of total assets, indicating some level of financial stability to navigate through current challenges.
SWOT Analysis
Strengths
Strong brand recognition in consumer electronics
Diverse product portfolio across houseware and electronics
Solid financial position with manageable debt ratios
Emerson Radio Corp (MSN) QQ1 2026 Results Analysis — Soft Revenue with Limited Margin Expansion but Solid Liquidity in a Fragmented Consumer Electro...