Singing Machine Company Inc

(OTC: SMDM)

Industry: Consumer Electronics
On the web: http://www.singingmachine.com
Employees: 30

The Singing Machine Company, Inc. was incorporated in California in 1982. In May 1994, the Company merged into a wholly-owned subsidiary incorporated in Delaware with the same name. As a result of that merger, the Delaware corporation became the successor to the business and operations of the California corporation and retained the name The Singing Machine Company, Inc. The Company and its wholly-owned subsidiaries SMC (Comercial Offshore De Macau) Limitada, SMC Logistics, Inc., SMC-Music, Inc. and Singing Machine Holdings Ltd. are engaged in the development, production, marketing and distribution of consumer karaoke audio equipment, accessories, music, musical instruments, and licensed youth electronic products. The Company currently has three different product lines which consist in total of over 50 different models. The product lines consist of the following: Karaoke Machines, Music and Musical Instruments. Karaoke Machines incorporates such features as CD plus graphics player, sound enhancement, echo, tape record/playback features, and multiple inputs and outputs for connection to compact disc players, built-in camera, video cassette recorders, and home theater systems. Music includes a song library of over 2,500 recordings, which the Company licenses from the respective publishers. Its library of master recordings covers an eclectic range of musical tastes including popular hits, golden oldies, country, rock and roll, Motown, Christian, Latin, and Rap. It offers an exclusive line of Original Artist karaoke music under the monikers of ‘Real Karaoke' and ‘Motown Original Artist Karaoke'. The Company sells Musical Instruments under the ‘Sound X' (tm) brand. These include digital drum sets and keyboards. The Company contracts for the manufacturing of all its electronic equipment products with factories located in China. It obtains the song licenses from major publishers such as EMI, Universal, Sony and Warner and contract for the reproduction of music recordings with independent studios. It has also begun collaborating with a music download service provider for an expanded library of musical selections. The Company is also in the process of expanding its web presence by creating a hosted cyber-community where customers could upload their individual karaoke performances to share. The Company's karaoke machines are manufactured and assembled by third parties pursuant to design specifications provided by it. Its products are sold directly to distributors and retail customers. It distributes its hardware products to retailers and wholesale distributors through two methods: shipment of products from inventory held at its warehouse facilities in Florida and California, shipments directly through its Macau subsidiary, and manufacturers in China of products. The Company's major competitors for karaoke machines and related products are Memorex, GPX and other consumer electronics companies. As far as the musical instrument market, its key competitors include Yamaha, ION, and others. For Bratz products, its competitors are Memorex and Emerson, which also make licensed products for youth electronics. In addition, the Company competes with all other existing forms of entertainment including, but not limited to, motion pictures, video arcade games, home video games, theme parks, nightclubs, television and prerecorded tapes, CD's, and videocassettes.