SLS to get play on 'The Apprentice'

Though quarterly earnings figures are still in the red for the audio equipment company, CEO John Gott said the company is ahead of its internal goals, due in large part to its multimedia efforts to market its products.

Those efforts will reach new heights next spring, when SLS products are slated to appear on “The Apprentice.”

Mark Burnett, producer of reality shows including “Survivor” and “The Apprentice,” has an agreement with the company to use SLS products in some of his shows; Gott said one episode of next spring’s run of “The Apprentice” will prominently feature SLS products.

“Anytime you can get that kind of exposure, it’s great. Any product that has been featured on ‘The Apprentice’ so far has been just a massive success, from automobiles to microwaves,” Gott said. “That’s a huge part of our marketing plan.”

SLS, which went from an over-the-counter stock to being listed on the American Stock Exchange (AMEX: SLS) in October, announced Dec. 8 that it has reached an agreement to advertise its products on the entertainment and music sections of America Online.

The company hopes to drive customers to its new Web site, www.buysls.com, where they can buy direct from the SLS.

Visibility

SLS products have already appeared in high profile places and are touted by high-profile celebrities.

SLS products were used by NBC and MSNBC during the telecasts of the 2002 and 2004 Olympics, and marketing campaigns have led to endorsements by Quincy Jones and Sting.

Jones is the spokesperson for Q-Line Silver, the company’s surround-sound home theater system, which is available in a select number of Wal-Mart stores nationwide in the secondary phase of sales testing with the retail giant.

Gott declined to disclose how many stores carry the product, citing confidentiality agreements with the retailer; it is available in at least two stores in Springfield – South Campbell and Nort Kansas. Gott also declined to disclose exact sales figures for the Wal-Mart deal, though he did say that sales have been made in about 85 percent of stores where the product is carried.

He added that the timing of SLS’s latest move – right before the holiday season – is no coincidence.

“We realize (the technology) is very applicable for the consumer market,” Gott said. “The number one products this holidayseason are electronics – they’re at the top of the list. We expect that over the next five years, considerable revenues are going to be contributed from the consumer side, and they’ll probably outweigh the commercial side of our business.”

In contrast, Gott estimates that 98 percent of company revenues currently come from commercial customers.

Progress

While a quick glance at the company’s recent quarterly earnings could be disheartening – net income losses totaled more than $2.6 million in third-quarter 2005 – Gott is not discouraged.

He said he expects that the company will be turning a profit by the end of 2006 or the beginning of 2007, adding that SLS is ahead of its goal to be a $1 billon company in five years.

The company also has finished its expansion into a new facility in Ozark. SLS now occupies 6,000 square feet in the former Fasco plant in Ozark; the company has a 10-year lease, with an option to purchase for $3.5 million.

Gott, who was on hand to ring the opening bell for the American Stock Exchange Dec. 9 in New York City, said that the company’s moves – to a new facility and a new stock exchange – are indicators of its progress.

“When you get on the AMEX, you’re moving up – your stock is being recognized by a national exchange, and it’s definitely a move forward with regards to shareholder liquidity and value,” he said. “It’s a lot more credibility when your stock is recognized on a national level.”

Since trading on AMEX, company stock has fallen from $1.85 a share to as low as $1. Shares closed Dec. 20 at $1.43, compared to a 52-week range of 97 cents to $3.04.