consumer products to be sold in Mexico. They also had a licensing agreement with Telesound Electronics for telephones, answering machines, and caller ID products in the United States and Canada. Net income for Emerson was only $289,000 on net revenues of $158.7 million in fiscal 1999 with a long-term debt of $20.8 million at the end of the fiscal year. Nearly 84 percent of its merchandise that year was imported, primarily from China, Hong Kong, Malaysia, South Korea, and Thailand. Tonic Electronics (32 percent), Daewoo (22 percent), and Imarflex (12 percent) were its main suppliers. The company depended heavily on Wal-Mart Stores, which took about 52 percent of its goods in fiscal 1999, and Target Stores, Inc., which took about 24 percent. 2001–present In 2001, Emerson exited the video electronics business (TVs, DVD players, VCRs) and handed 100% of the manufacturing operations to Funai, which continued to make and market Emerson consumer video products for Wal-Mart. In January 2003, Emerson announced it had entered into a letter of intent naming Sanlian Group of Shandong, China the exclusive distributor of Emerson branded products through its subsidiary, Sanlian Household Electric Appliance Company (SHEAC). The agreement contemplated the supply and distribution of Emerson originated product categories through SHEAC's 200 retail stores and maintenance service centers as well as its extensive BtoB and BtoC e-commerce network. Sanlian was to license the Emerson brand for additional product categories it finds suitable for China-wide distribution and cooperate with Emerson in the design, development and sourcing for such. Products Consumer electronics Products include televisions (flat tube and LCD), VCRs, DVD players and combos, other video products, home theater, home and car audio, audio accessories, high-end acoustics, microwave ovens, office and wireless products. Some products are also marketed under the name "Emerson Research". Emerson's main focus is the distribution and sale of low to moderately priced products, therefore their distribution is primarily through mass merchants, discount retailers, specialty catalogers, and the Internet. As a brand, Emerson gains further leverage globally through various licensing agreements. For example, Emerson brand TV, DVD, TV/VCR/DVD combination units are made by Funai. Smartset Emerson Radio pioneered the Smartset clock radio which automatically sets itself with the correct time and date using a battery back-up oscillator time base to accurately set the clock's time when the alarm clock is powered-on and after a power outage. In recent years, the company has expanded the Smartset