Mr. Donnelly continued, "At the same time, the macroeconomic environment remains uncertain, and we do not expect school funding to be restored to normal levels in the near future. For these reasons, we believe it is prudent to maintain our prior guidance for fiscal 2011."
Results for the Twenty-Six Weeks Ended December 31, 2010
For the twenty-six weeks ended December 31, 2010, net sales declined 11% to $47.1 million, compared to $52.9 million in the same period last year.
Gross profit for the first twenty-six weeks of fiscal 2011 declined 16% to $33.3 million, compared to $39.7 million in the same period last year. The Company's gross profit margin decreased 440 basis points to 70.7% from 75.1% in the same period last year.
Operating income for the twenty-six weeks ended December 31, 2010 was $0.9 million, compared to $10.0 million in the prior year period.
GAAP net loss for the twenty-six weeks ended December 31, 2010 was ($0.4 million), or $(0.04) per share. Adjusted pro forma net loss for the six months, as defined by the Company, was ($0.5 million), or $(0.02) per share.
Adjusted EBITDA for the first twenty-six weeks of fiscal 2011 was $4.7 million, compared to $13.2 million in the same period last year.
Fiscal 2011 Guidance
For fiscal year 2011, the Company continues to expect net sales to decline in the range of 10% to 15% from fiscal year 2010. The Company also continues to expect Adjusted EBITDA for fiscal year 2011 to be between $19.0 million and $23.0 million and adjusted pro forma net income per share in the range of $0.21 to $0.27 per share.
The conference call is scheduled to begin today at 4:45 p.m. EST. The call will be webcast live over the Internet hosted at the Investor Relations section of DynaVox's website at
, and will be archived online through February 23, 2011. In addition, listeners may dial (877) 312-5529 in North America, and international listeners may dial (253) 237-1147. Participants from the Company will be Ed Donnelly, Chief Executive Officer, and Ken Misch, Chief Financial Officer.
A telephonic playback will be available from 7:45 p.m. EST, February 9, 2011 through February 23, 2011. To hear the playback, North American listeners may dial (800) 642-1687 and international listeners may dial (706) 645-9291. The conference ID number is 35592090.