K-Tel Net Income Drops
K-Tel International Inc., Calabasas, CA, reported a drop in net income of 48 percent to $438,000 during its second quarter ending Dec. 31, or $0.11 a fully diluted share, on net sales that rose 36 percent to $23.2 million.The company boasted net income of $902,000 during the same period the previous year, a figure that excluded the recovery of another $902,000 in legal expenses from a lawsuit with a British entertainment concern.
Company president David Weiner blamed the drop in net income on "investments we have made in our direct response and online businesses." He said he expected the investment in these operations to lead to stronger revenue growth.
