Concord Camera Corporation announces record sales

Concord’s Retail Sales and Distribution (“RSD”) sales for fiscal 2003 were $145.8 million, 77 percent of total sales, and up by $50.1 million (52.3 percent) over fiscal 2002. The company says this growth “was in large part due to new digital camera sales, `Polaroid´-branded single-use and traditional cameras, new accounts and growth from existing accounts due to sell-through, and new product introductions.”

Concord’s Design and Manufacturing Services (“DMS”) sales for fiscal 2003 were $44.0 million, up by $10.4 million (30.9 percent) over 2002. The increase “was due primarily to digital camera sales to a Fuji Photo Film Co., Ltd. subsidiary, Legend Group Limited in the PRC, and Visioneer, Inc., sales of a new single-use camera being manufactured for Kodak under a new supply agreement… and other sales to existing customers, partially offset by the previously disclosed expiration of certain DMS contracts.”

Concord’s gross profit for fiscal 2003 was $36.3 million (19.1 percent of sales), up from $19.0 million (14.7 percent of sales) in fiscal 2002. Working capital was $121.1 million at June 28, 2003, up from $115.4 million at March 29, 2003 and from $128.4 million at June 29, 2002.

In fiscal 2003, Concord shipped approximately 922,000 digital cameras worldwide. According to IDC for calendar year 2002, Concord achieved a 4 percent market share in the US for point and shoot digital cameras – that is cameras that do not include an optical zoom – and ranked number eight, behind only the world renowned brands of Sony, Olympus, Kodak, Canon, Fuji, Hewlett-Packard and Nikon. Concord’s objective is to achieve a 5 percent market share in the United States and European markets, and to derive 50 percent of its total revenues from this product category by the end of fiscal year 2006.