APRIL 2008 W5 ALERTDirected Electronics Gets Serious About SIRIUS
Company Extends Contract For SIRIUS Satellite Radio
<April 29, 2008>Directed Electronics, Inc. announced today that it has amended and extended its distribution agreement with SIRIUS Satellite Radio, Inc. until January 31, 2009. While giving few details, the amendments are said to address Directed’s exposure to warranty expenses, which the company said adversely impacted third quarter 2007 results to the tune of $4.3 million.
The new agreement extends the current deadline from August 31, 2008 through January, 2009 allowing the company to take advantage of the all important fourth quarter for added sales.
President and Chief Executive Officer, James E. Minarek, in commenting on the new agreement, said, “Cumulatively, we believe these changes will lead to improved financial results for this business.”