Mackie Designs Expands Addressable Markets With Launch of New Pro Audio Products Profit Margins Expected to Benefit From Cost Reductions; Sees Additional Benefits From Global Branding & Distribution Leverage
February 26, 2002 - Woodinville, WA - Noting that "new products drive Mackie's growth," Jamie Engen, President and Chief Executive Officer of Mackie Designs Inc. (NASDAQ:MKIE), announced the launch of a host of advanced new products for the professional audio market at the recent 2002 Winter NAMM in Anaheim, California - the industry's largest annual trade show.
Engen commented, "Our customers look to Mackie for superior value professional audio products and we, as a market leader, are committed to meeting their expectations. We are also dedicated to building value for our shareholders by achieving our goals for revenue and earnings growth. By taking advantage of advances in audio technology, the cost benefits associated with offshore manufacturing initiatives, as well as lower-cost designs and components, our uncompromising new product program targets both of these objectives.
"As a result, all of our new mixers, recorders, loudspeakers and software offer the features and quality our customers require, while expanding our addressable markets and laying the foundation for improved top and bottom-line performance in 2002," continued Engen. "At NAMM (National Association of Music Merchants), we introduced new, inexpensive systems for the analog mixer market; extended our family of pro audio speakers to compete in this substantial market; added a new product to our family of digital recorders at a price point that should significantly expand this opportunity; and unleashed an advanced new digital audio workstation that will allow us to compete effectively in this market for the first time."
Engen concluded, "Overall, we have increased our product range in current markets and entered interrelated new markets. We have improved our position on the cost side, solidifying our margins. All of these are key elements in our strategy to maximize the leverage of our unparalleled brand-name appeal and global distribution capability. More impressive new products are on the way. This is the right strategy for Mackie's growth."
New products announced at NAMM include:
- DFX6 and DFX12 Compact Mixers A new pair of low-priced compact mixers that combine exceptional high sound quality with a comprehensive feature set in an affordable package. The DFX6 and DFX12 take full advantage of Mackie's recently announced collaboration with Amoisonic Electronics Co. Ltd. of China to define an entire new price vs. performance benchmark and introduce a new, expansive market to Mackie products.
- HR624 Studio Monitor and HRS120 Studio Subwoofer Mackie also extended its family of pro audio speakers – opening a widespread audience to their award winning Mackie Active technology. The new HR624 encloses the same technology found in the successful HR824 into an exceptionally affordable package. Additionally, the new HRS120 Studio Subwoofer rounds out the line and, along with its precise studio monitors, allows Mackie to offer a complete surround-sound system for studio mixing or high-end home theater.
- SDR24/96 Hard Disk Recorder The newest member of Mackie's award winning hard disk recorder family, the new SDR24/96 allows first time buyers and home studio owners access to the superb Mackie digital recording technology currently being used by respected industry professionals.
- Soundscape 32 The Soundscape 32 digital audio workstation is the first member of Mackie's new Broadcast Professional family of products. Designed specifically for sophisticated television and movie production facilities, the Soundscape 32 and forthcoming members of the Mackie Broadcast Professional family, will further establish Mackie's position as a provider of innovative and reliable technology for high-profile television broadcasts and motion pictures studios.
- DX810 Matrix Mixer A powerful product for the fixed installation market, the DX810 is a sophisticated mixer that functions as the "nerve center" for any distributed audio installation in churches, office buildings, shopping centers, homes and other facilities. The DX810 is an innovative and useful product for contractors that will help drive the sale of other Mackie products into this sizeable market.
About Mackie
Mackie Designs Inc. is a leading manufacturer and marketer of high-quality, affordable professional audio systems. Mackie products can be found in professional and project recording studios, video and broadcast suites, post production facilities, sound reinforcement applications including churches and nightclubs, retail locations and on major musical tours. Mackie Designs's products are marketed by 54 distributors to over 100 countries around the world.
Forward-Looking Statements
This press release contains statements that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on current expectations, estimates and projections about the Company's business based, in part, on assumptions made by management. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements due to numerous factors, including those described above and the following: changes in demand for the Company's products, product mix, the timing of customer orders and deliveries, the impact of competitive products and pricing, difficulties encountered in the integration of acquired businesses and other risks discussed from time to time in the Company's Securities and Exchange Commission filings and reports. In addition, such statements could be affected by general industry and market conditions and growth rates, and general domestic and international economic conditions. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release.
"Mackie." is a registered trademark of Mackie Designs Inc. in the United States and other countries.
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