Bose whose Australian revenues slumped $21M last year, is now facing the cost of having to recall more than one million dodgy subwoofers that were sold between January 1994 and April 2007.

The US audio Company claims that the modules, or subwoofers, carry a risk of electrical component failure that poses a fire hazard, according to the official recall notice from the Consumer Product Safety Commission (CPSC).

The business that has had a chequered run during the past few years, having closed their retail operations and lost business via the specialist audio channel reported a fall in revenues in Australia from $114.2M to $93.9M.

Australian revenue witnessed the biggest fall to $80.4M from $100.1M in the prior financial year.

New Zealand revenues fell from $14M to just $13.4M, no explanation for the big fall in Australia has been given.

Profits for the Australian operation also fell from $2.6M to $1.9M as the business initiated a reduction in costs.

The reason for their latest recall was that there have been several incidences of the bass subwoofer modules igniting or melting, according to the CPSC, including three incidents of fires resulting in property damage to carpeting, an entertainment cabinet, and to materials surrounding the bass box.

Several subwoofer models are listed on the Bose web site.

Consumers have been warned that if it turns out your product is among the ones affected you are to stop using it immediately and do not plug it in or reconnect it to electrical power.

At this point, you have two options. Bose is offering to let you send in your bass module and it will repair it free of charge. They are also spruiking an upgrade to a new Bose sound system.

In Australia total liabilities for the business increased from $20M to $28M during their last reported financial year, retained profits also fell. Cashflow from investing also fell.

Cash at the bank also fell from $753,000 to $416,000.