A worldwide drop in sales of personal computers, especially in Europe, has hurt Hauppauge Digital Inc.'s sales and profitability this fiscal year, the company said.
The company makes TV tuners and high-def video recorders for PCs and Apple products.
But it hopes two of its newer products, Colossus and Broadway, can help turn around the company's fortunes. It also plans to target its sales efforts on faster-growth areas of Europe.
The company lost $1.4 million in its second quarter ended March 31, compared to a net loss of $902,000 the same quarter last year, the company said in a Tuesday news release.
The loss came on falling sales revenue, down to $10.3 million for the second quarter, compared to $13.8 million in the same quarter a year ago.
The Hauppauge-based company makes digital video TV and data broadcast receiver products for personal computers.
The six-month results were no better. In the first half of fiscal year 2011, the company had a net loss of $2.18 million on revenue of $23.2 million compared to a net loss of $1.23 million on revenue of $31.7 million in the first half of fiscal 2010.
“Our sales to computer products retailers have slowed in Europe, primarily due to the decline in the sales of new laptop computers which have been our target market for the past several years," Ken Plotkin, Hauppauge’s chief executive, said in a prepared statement.
"In order to refocus our sales strategy, we restructured our sales organization in January to place more focus on areas in Europe where we expect faster growth later on this year."
The company's Colossus device, billed as its "next generation high definition video recorder," began shipping in recent months. "Colossus can record TV programs in HD from a cable TV or satellite set-top box. It can also record video game play in HD from an Xbox 360 and a PlayStation 3," the company said.
The company's Broadway device, which just started shipping to the European market in mid-April, was developed by Hauppauge's PCTV Systems group in Europe. It live TV from a cable TV box or from a TV antenna to an Apple iPad and iPhone.
"Broadway can also send live TV in the home via Wi-Fi or via the Internet anywhere in the world," the company said.
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