Directed Electronics - A Sirius Partner
April 6, 2006
Many who come to this site are interested in satellite radio as not only a subscriber, but also as an investment. There are several components and partners that are involved in satellite radio that investors may want to take a look at.
Today Satellite Standard Group (SSG) is taking a look at
Directed Electronics (symbol DEIX).
Directed Electronics is a well known partner of Sirius Satellite Radio, and is the distributor of some of the more well known Sirius Satellite Radio receivers such as the S50, the Sprortster Replay and the Starmate Replay. Directed Electronics went public in late 2005, and the stock price has been doing very well. In their Fourth Quarter conference call Directed stated a few interesting items:
1. Their NET sales increased 69% to $135.5 million in the fourth quarter and 60% to $304.6 million for 2005.
2. 2005 Security and Entertainment sales increased 19%. Satellite Radio sales increased 311%.
3. James Minarik, Directed’s President and CE stated, “Our growth was primarily driven by the continued momentum of our security and entertainment business and the strong growth of our SIRIUS satellite radio product sales. Specifically, our ongoing market leadership in security and convenience, led by our Viper, Python, and Clifford brands, as well as the expansion of our Definitive Technology home theater products, resulted in a 19% increase in our security and entertainment gross sales for the year." Minarik also expanded on the comment when he stated, "Fueled by strong consumer demand, our 2005 full year satellite radio gross sales experienced dramatic growth totaling $121 million, an increase of 311% compared with 2004," continued Mr. Minarik. "The year 2005 was truly an inflection point in the satellite radio industry. The combination of innovative product, compelling content, operational execution and our strategic relationship with SIRIUS Satellite Radio led to SIRIUS receivers achieving 61% retail market share in the fourth quarter of 2005 according to The NPD Group. As the primary supplier of SIRIUS branded receivers in the retail aftermarket, we expect to benefit from increasing consumer demand in 2006 and beyond."
One reason investors may want to take a closer look at Directed is that they are involved in far more than satellite radio. Directed is also the company behind vehicle security components such as Viper and Clifford. Derivative investment plays such as Directed allow an investor to participate in the growth of satellite radio while having the advantage of investing in a company that is diversified into other businesses as well.
The link to this write up is: http://tinyurl.com/nl6l5
SSG is not a financial planner. SSG fully encourages readers to perform their own research and recommends that readers consult a Certified Financial Planner prior to making any investment decisions.
4/06/2006 10:42:00 AM
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