VSDA to Come in Under Budget for 200319 Nov, 2003 By: Kurt Indvik
The Video Software Dealers Association is on track to finish the 2003 fiscal year $300,000 ahead of budget on an accrual basis, the association's board of directors heard during a meeting Nov. 14 in Phoenix. The 2003 budget was set at $3.96 million in revenue against $3.95 million in expenses.
The VSDA board approved a 2004 budget of $2.84 million in revenue against projected expenses of $2.57 million, for a net income on an accrual basis of $260,000 next year. The association has cut expenses through staff attrition, renegotiation of its office-space lease agreement, reduction of research functions and continued migration of members' services and product delivery to its Web site.
The association intends to achieve a break-even, cash-basis budget by 2005.
Better-than-expected results in its Home Entertainment Events 2003 shows (a joint venture with Advanstar Communications, publisher of Video Store Magazine), improved performance of the association's investments and the elimination of certain employee benefits contributed to the positive outcome against budget in 2003.
Meanwhile, 46 new member companies were accepted into the association during the meeting, a “healthy increase” in new membership since the last board meeting in July, said Sean Bersell, VP of public affairs for the VSDA. “It's a positive sign that the vitality of this industry is compelling people and companies to want to get into this business,” he said.
Board members also were given a brief update on the VSDA's actions pertaining to DVD patent issues arising from Multi-Format Inc.'s claims of infringement on DVD technology patents it is attempting to enforce on retailers in the industry. Also on the docket for discussion was the association's recent activity in supporting various legislative efforts on digital piracy.
Finally, the board was presented with a letter from Rod Eglash, president of the VSDA's Wisconsin chapter, calling for the board to reinstate the Independent Retailer Council and to take other actions to better serve the independent retailer members of the VSDA. The board made no formal comments nor took any action, according to the summary of proceedings.