Operating income for fiscal year 2013 was $9.3 million, a decrease of $2.6 million, or 21.4%, from operating income of $11.9 million for fiscal year 2012, due primarily 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 and the higher licensing revenues.
Net loss for the fourth quarter of fiscal 2013 was $1.5 million, as compared to net income of $2.4 million for the fourth quarter of fiscal 2012, a decrease of $3.9 million, or 162.7%, due primarily to the recording by the Company during the fourth quarter of fiscal 2013 of an anticipated income tax liability related to one of its overseas subsidiaries as well as the year-over-year decrease in operating income.
Net income for fiscal year 2013 was $6.0 million, as compared to $10.6 million for fiscal year 2012, a decrease of $4.6 million, or 43.6%, due primarily to the year-over-year decrease in operating income, the recording by the Company during the fourth quarter of fiscal 2013 of an anticipated income tax liability related to one of its overseas subsidiaries, 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 loss per share for the fourth quarter of fiscal 2013 was $0.06, as compared to earnings per share of $0.09 for the fourth quarter of fiscal year 2012, a decrease of $0.15 per diluted share, or 166.7%.
Diluted earnings per share for fiscal year 2013 were $0.22, as compared to $0.39 for fiscal year 2012, a decrease of $0.17 per diluted share, or 43.6%.
Duncan Hon, Chief Executive Officer of Emerson Radio, commented, "Our fourth quarter and fiscal year 2013 results were disappointing 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 and an increase to our income tax accruals recorded in the fourth quarter. We expect the aforementioned 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, effective Spring 2013, from the Company two microwave oven products sold throughout fiscal year 2013 by the Company to Wal-Mart, the last shipments of which were made in February and March 2013. Although higher year-over-year margins for the full fiscal year 2013 helped to slightly mitigate the negative impact to our bottom line profitability on a year-over-year basis, we saw year-over-year margins decline in our fourth quarter and expect that the pressure on margins will continue for the foreseeable future. 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.
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