HispanicBusiness

Operating income for the third quarter of fiscal year 2013 was $2.0 million, a decrease of $2.5 million, or 55.4%, from operating income of $4.5 million for the third quarter of fiscal year 2012, due primarily to the substantial declines in net product sales, higher year-over-year landed product cost as a percent of selling price and the slight decrease in year-over-year licensing revenue, partly offset by lower SG&A expenses.

Operating income for the nine month period of fiscal year 2013 was $8.6 million, a decrease of $1.4 million, or 14.3%, from operating income of $10.0 million for the nine month period of fiscal year 2012, due to the substantial declines in net product sales and the impairment write-down in September 2012 of a non-strategic trademark, offset in part by lower year-over-year landed product cost as a percent of selling price, the higher year-over-year licensing revenue and lower year-over-year SG&A expenses, primarily due to decreased compensation and consulting costs.

Net income for the third quarter of fiscal 2013 was $1.7 million, as compared to $3.2 million for the third quarter of fiscal 2012, a decrease of $1.5 million, or 46.6%, due primarily to the year-over-year decrease in operating income. Net income for the nine month period of fiscal 2013 was $7.5 million, as compared to $8.3 million for the nine month period of fiscal 2012, a decrease of $0.8 million, or 9.6%, due primarily to the year-over-year decrease in operating income, the realized gain on sale of marketable security earned in the prior period and the gain on the sale of a building in the prior period. Diluted earnings per share for the third quarter of fiscal year 2013 were $0.06, as compared to $0.12 for the third quarter of fiscal year 2012, a decrease of $0.06 per diluted share, or 50.0%. Diluted earnings per share for the nine month period of fiscal year 2013 were $0.28, as compared to $0.30 for the nine month period of fiscal year 2012, a decrease of $0.02 per diluted share, or 6.7%.

Duncan Hon, Chief Executive Officer of Emerson Radio, commented, "As expected, our third quarter and nine month fiscal 2013 revenues declined significantly as compared to the prior year due to intense competition, including downward pricing pressure, within all of our product categories, as well as the continuing effects of a challenging retail sales environment. We expect such market conditions to persist for the foreseeable future and, as we previously disclosed, anticipate a further reduction in revenues due to the decision by Wal-Mart to discontinue purchasing from the Company two microwave oven products currently sold by the Company to Wal-Mart. Although higher margins for our nine month period helped to slightly mitigate the negative impact to our bottom line profitability on a year-over-year basis, we don't anticipate that this favorable outcome will continue or be indicative of a trend for the full fiscal year. The Company seeks to implement pricing and product strategy initiatives to improve the Company's results of operations, although there can be no assurance that such initiatives will be successfully implemented or have the desired effects on the Company's results of operations and financial condition."

About Emerson Radio Corp.
Emerson Radio Corp. (NYSE MKT: MSN), incorporated in 1994, is headquartered in Hackensack, N.J. The Company designs, sources, imports and markets a variety of houseware and consumer electronic products, and licenses its trademarks to others on a worldwide basis for a variety of products. For more information, please visit Emerson Radio's web site at www.emersonradio.com.