Ambertech Smashed Supply Issues Impact Both Sales & Profits
Ambertech has been smashed with their consumer lifestyle revenues slumping 12.6% to $12.6M EBIT was down 102.8 percent to a loss of $432,00 as at December 30th.
The Company claims that their consumer lifestyle division is now under review following significant supply issues that saw retailers who range their products struggling to get supplies of products from brands such as Onkyo who aborted the sale of the brand to Sound United the maker of the Denon, Marantz and Klipsch sound gear last year.
In a statement to the ASX the Company said “We have been unable to provide satisfactory product supply due to changes made in their (Onkyo) manufacturing operations as part of the aborted sale of its Home AV business to Sound United LLC (USA).
“These Onkyo supply issues also depressed activity in the residential installation market, with low stock availability of Integra branded AV receivers, which is a market leading plank product in this segment.
The Company went on to claim that they expect to see a return to consistent supply lines from Onkyo toward the end of the financial year.
ChannelNews understands that Ambertech has secured the rights to Philips projectors which will shortly be launched in Australia.
Amber said tha the last two months running up to December 30th, 2019 were impacted by having to rearrange their agency portfolio to accommodate new brands from the HAV acquisition.
“Integration of these brands and agencies is now complete and working well. Ongoing margin improvements are also expected to assist results in the near future.
The Company also reported that their Professional sales were down 27.7% to $12M EBIT was down 129% to a loss of $337,000.
The Company claimed that their Professional segment suffered the same problems as their lifestyle division with supply problems impacting their ability to service pro partners.
“Results for the period were impacted by supply problems with a major supplier, causing disruption in sales to the MI channels. This disruption has been rectified since the end of the reporting period” the Company reported.
The only bright spot for Amber was Musical Instruments.
Amber management claimed that this growth was important in ensuring positive results as they were “unable to recognise revenue from major project work in the broadcast media, defence, law enforcement and emergency services market”.