SLS posts 1Q revenue increase

Revenue for the quarter ended March 31 was $970,497, compared to $824,720 the same period last year. Company officials attribute the increase to a higher demand for SLS’ Cinema product series – sales of which have increased fivefold this year, according to a company news release.

SLS reported a net loss from operations of $3.1 million for the quarter, compared to a net loss of $2.7 million in first-quarter 2005. The loss was the result of increased personnel and infrastructure in anticipation of the launch of the Q-Line Gold Home Theater System, which debuted in 618 Best Buy stores earlier this month.

The net loss also included a loss of $325,464 associated with the first-quarter sale of the company’s corporate headquarters in Ozark. SLS continues to occupy the building, a former Fasco plant, through a lease.

“We decided it wasn’t advantageous for us to be landlords,” SLS Chairman and CEO John Gott said. “It’s the best use of our assets. We had a lot of cash tied up in this building, just sitting here, and we needed to use that capital to move the business forward.”

As of March 31, the company had a backlog of orders of about $2.05 million, which included a $1.6 million order for the Q-Line Gold system from Best Buy. Backlog in the first quarter of last year was $150,000.

SLS International shares (AMEX: SLS) closed May 17 at 78 cents, compared to a 52-week range of 52 cents to $2.52.

This story originally appeared in SBJ’s May 16 free e-news Daily Update. Click here to register.