Polk Audio Inc.

The demand for expensive speakers has dropped during the recession, slashing earnings at this Baltimore-based loudspeaker company.

While sales of its least expensive speakers, retailing for about $200 a pair, have been stable, demand for its top-line speakers, retailing for as much as $3,400 a pair, has fallen, said Gary Davis, a company spokesman. As a result, profits for Polk's fourth fiscal quarter, which ended March 31, dropped to $51,235. As a result of the declining earnings, Polk laid off 14 workers in March, Mr. Davis said.

Three months ended 3/31/91

Revenue ... Net ... Share

'91 ... 6,190,462 ... 51,235 ... 0.03

'90 ... 7,154,129 ... 577,781 ... 0.32

% change ... -13.5 ... -91.1 ... -90.6

Year ended 3/31/91

Revenue ... Net ... Share

'91 ... 27,866,122 ... 1,200,444 ... 0.68

'90 ... 27,540,127 ... 1,927,156 ... 1.09

% change ... +1.2 ... -37.7 ... -37.6