Hauppauge Digital Inc. says two factors — Europe’s economic woes, and the worldwide decline in sales of personal computers — have resulted in a difficult year in which its sales declined 25 percent and its losses tripled.
The news had an immediate effect on the company’s share price Wednesday. It fell more than 11 percent by mid-morning. The shares fell 9 cents to 70 cents, on the low end of Hauppauge Digital’s 52-week range of 60 cents to $4.06.
The company, with about 150 employees worldwide, makes products that allow users to watch and record live TV on personal computers, and to stream live TV to iPhones, iPods and Android smartphones.
Sales of Hauppauge’s TV video recorders, which can also record gaming on Xbox and PS3 consoles, increased to $17.69 million this year, from $8.26 million last year. But that was more than offset by a fall in sales of TV tuners to $23.2 million from $46.5 million last year.
In Europe, which provides about one-third of the company’s sales, consumers bought fewer PCs and the euro declined in value relative to the dollar, Hauppauge Digital said in its annual report, filed Tuesday.
The company reports that 2011 is its fourth money-losing year in a row.
It had a $5.89 million loss for the year ended Sept. 30, compared to a $1.84 million loss in 2010.
Sales also fell, to $42.3 million this year compared to $56.9 million last year.
For the year, stockholders of Hauppauge Digital saw a net loss, per diluted share, of 58 cents, compared to 18 cents last year, the company reported.
Sales in Europe — in euros, converted to dollars — fell to $15.9 million this year from $29.3 million last year.
Sales in the U.S. and the rest of the Americas declined slightly, to $24.8 million this year from $26.1 million in 2010. Asian sales rose to $1.56 million from $1.39 million.
Most of the company’s products are made by contractors in Asia and are designed and tested in its offices in Hauppauge, in Ireland and in Germany.
Photo shows the company's Broadway TV tuner.