TDK Posts Loss In Q3, Lowers Guidance For Fiscal Year

The company's revenue for the quarter rose by 12.4% to $18.5 million. However, despite higher revenues, the company dove into red ink for the quarter, posting a loss of $560,140 (2 cents per share) compared to a profit of $827,825 (4 cents per share) last year. The company attributed the loss to product pricing pressures, increased product amortization due to lower than anticipated sales volumes and write-offs of abandoned development projects. Commenting on the company's performance in the quarter, company CEO Vincent Bitetti, said that "Q3 was a challenging quarter as we faced a highly competitive retail holiday selling environment and conservative retailer inventory postures in which initial orders were scaled back and reorders, even for very strong performing titles, were limited." The company also lowered its guidance for the current fiscal year. Just last month it anticipated a loss on the year of $1.2-$2.4 million, but now believes the loss will be about $3.5 million. It did not change its revenue estimate for the year, indicating the wider loss is entirely due to lower sales margins.