IS AmberTech A Takeover Target? Consumer Sales Up 17%
Ambertech has for the first time in five years reported a significant increase in consumer sales has become a takeover target according to sources.
Last week the Company reported that sales revenue in their lifestyle division was up 17.1% to $17,284,000 (Dec 14: $14,761,000). EBIT up 260% to $1,245,000 (Dec 14: $346,000).
This division distributes brands such as Onkyo, Integra, Optomo and iPort.
The Company said that the second half of the financial year is typically a more difficult period for their Lifestyle Entertainment segment. “In particular, sales to the major retailers slow during the early months of the new calendar year, and this has an impact on our results during this time” an Ambertech executive said.
The Company has also announced that they have made changes to this division which they hope will assist in reducing that impact on their results going forward.
In the Pro Av market Amber has not fared as well with their professional products division reporting a
sales decline of 7.9% to $9,758,000 (Dec 14: $10,598,000). EBIT down 138% to $(81,000) (Dec 14: $214,000).
According to Ambertech management the Pro AV division was impacted by fewer capital projects coming to fruition in the traditional broadcast media space, and this drove the revenue result lower and created a small loss for this segment for the period under review.
Recently Ken Dwyer the former owner of Advanced Audio Products acquired a stake in Ambertech.
ChannelNews is also aware that the Company has held talks with other distributors who are keen to merge their business with Ambertech.
Overall Revenues increased 7.28% while Net profits increased to $491,000.