Planar Releases Q3, 2014, Results
Planar Systems Inc., Beaverton, Oregon-based display and digital signage technology company, recorded sales of $43.9 million in its third fiscal quarter ended June 27, 2014.
Quarterly sales of digital signage products increased 53% to $21.4 million, compared to the third fiscal quarter of 2013.
During Q3, Planar rolled out the Clarity Matrix Video Wall Calculator, believed to be the first-of-its-kind, free online tool that makes it easier, faster and more accurate to design and install video walls. It also advanced the adoption of Ultra HD with the introduction of four new 4K displays: Planar UltraRes 98″, Planar EP-Series 58″ and 65″, and Planar IX-Series 28″ UHD displays. And it received several awards.
Total revenue increased 17% compared to the third quarter of fiscal 2013, as increases in sales of digital signage products more than offset a decline in sales of Commercial and Industrial (C&I) products. Sales of C&I products decreased 4% to $22.5 million compared with the same quarter a year ago. This decrease was primarily driven by lower sales of touch monitors and high-end home products, partially offset by higher sales of custom C&I displays and rear projection cubes.
The Company’s consolidated gross profit margin, as a percentage of sales (on a non-GAAP basis), was 24.4% in the third quarter of 2014, up from 21.7% in the third quarter of 2013. The improvement in gross profit rate is the result of both an increase in sales of higher margin digital signage products relative to lower margin C&I products as well as higher gross profit rates on sales of digital signage products compared with the prior year.
“Our third quarter results came in above our expectations for both revenue and profits, bolstered by strong growth in sales of our strategic focus area of digital signage products,” says Gerry Perkel, Planar’s president and CEO. “As a result of the strong performance in the third quarter, coupled with a favorable outlook for the fourth quarter, we are increasing our estimates for revenue and non-GAAP EPS for the full fiscal year.”
Looking forward, the Company currently expects to see continued strong revenue for digital signage and custom C&I products in the fourth fiscal quarter of 2014, and therefore anticipates revenue in the range of $48 million to $50 million. As a result, the Company has raised its estimates for the full fiscal year 2014, and currently expects revenue in the range of $173.4 million to $175.4 million.
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