Acorn International, Inc. announced its unaudited financial results for the second quarter ending June 30, 2017. The results were discussed through a conference call lead by Acorn International’s Jacob A. Fisch.
In the second quarter, Acorn continued to focus on its business turnaround strategy, delivering double-digit revenue growth, higher gross margins and a reduction in loss from operations due to management’s narrowed focus on core business and top performing brands.
Acorn International’s Management believes the performance of its core business improved substantially in the first and second quarters. Their medium-term goal is to achieve operating profitability to position the business for long-term, sustainable success. Management remains focused on maintaining healthy margins, managing expenses and generating additional cash flow.
In the first half of 2017, the Company reduced its stake in Yimeng Software Technology Co., Ltd., a publicly traded company in China, earning a pre-tax gain of approximately $9.1 million. Comparatively, in the first half of 2016, the Company recorded a pre-tax gain on the sale of Yimeng shares of $18.1 million and a $6.0 million pretax gain on the sale of non-core real estate.
Acorn intends to pursue increased revenue for the remainder of 2017 by growing sales of its proprietary-branded products as well as third-party branded products. The Company is placing an increased emphasis on its e-commerce channel and expects sales from this platform to play a bigger role in the business going forward.