SLS 2Q earnings rise 218%

Earnings for the quarter were $2.7 million, compared to $855,353 reported in the same quarter last year. Company officials attribute the increase to higher demand for the company’s Q-Line products and more sales of its Cinema product series. SLS announced in June that it would install the Cinema technology at Springfield’s Campbell 16 Cine.

Revenue for the six months ended June 30 was $3.7 million, a 120 percent jump from $1.7 million in the same period last year.

Gross margins for the sound-system provider increased from 21 percent in the first quarter to 27 percent in the second quarter.

SLS reported a $2.2 million net loss from operations for the second quarter, compared to a net loss from operations of $2.4 million in second-quarter 2005. The decrease is a result of increased sales, offset by expenses from the May launch of Q-Line Gold Home Theater System in Best Buy stores.

SLS had a net loss available to common stockholders of $3.4 million, or 7 cents per share.

Also during the second quarter, the company reported a $1.3 million charge for a dividend associated with the valuation of Class D warrants. In the same quarter last year, SLS reported income of $368,522 related to the warrants.

As of June 30, SLS had backlog of orders totaling about $446,000.

SLS International shares (AMEX: SLS) closed Friday at 33 cents, compared to a 52-week range of 31 cents to $2.52.