French wireless device maker for mobile phones Parrot reported revenues down 13 percent to EUR 61.8 million in the second quarter, compared to EUR 70.7 million in the year-earlier period. Key account revenues, including sales of multimedia connectivity products to automotive firms and related activities from acquisitions, generated EUR 30.8 million of sales, down 25 percent on EUR 41.3 million in the second quarter of 2012. The decline is attributed to the automotive industry environment, contraction for previous-generation solutions and the end of an exceptional contract. Retail revenues rose by 5 percent to EUR 31 million, versus EUR 29.4 million a year earlier. Traditional handsfree kit sales were down 3 percent and plug & play products grew 53 percent. Revenues for multimedia products, including the Parrot AR.Drone 2 and Zik headphones, declined by 8 percent to EUR 11 million.
The company's EBIT came to EUR 2.3 million, with a 3.7 percent operating margin, in the second quarter. This compares with an EBIT of EUR 8.3 million, with an 11.8 percent margin, in the second quarter of 2012. Net profit decreased by 94 percent to EUR 600,000 from EUR 9.3 million. Parrot's strategy and outlook for 2013 is unchanged, as the company moves from its traditional market for handsfree systems towards the infotainment market. It is also looking toward renewed success in smartphone-connected multimedia products and a gradual expansion in the market for commercial civil drones.