HUNTINGDON VALLEY, Pa., April 30, 2009 (GLOBE NEWSWIRE) -- The Wireless Xcessories Group, Inc. (Pink Sheets:WIRX), a nationwide manufacturer and distributor of electronic and cellular accessories, announced first quarter 2009 results for the period ended March 31. The Company reported first quarter revenue of $4,708,808, compared to $5,914,645 for the same period in fiscal 2008 or a net decrease of 20.4%.
Income from Operations
The Company showed income from operations of $286,000 or approximately $0.07 per share as compared to $133,000 or approximately $0.03 per share in 2008.
Net Income Comparison
First quarter net income after taxes totaled $106,000, compared to a net loss of $11,000 in the same period for 2008.
Key Financial Comparisons
The Company ended the quarter with working capital of approximately $6.8 million. The Company has no debt, and total equity was $7,516,000 as of March 31, 2009.
Dividend Declaration
The Board of Directors has declared a dividend of $.05 per share payable to stockholders of record on May 5, 2009 payable by May 19, 2009.
Steve Rade, CEO, stated, "Our first quarter operating income increased by $153,000 from 2008 in spite of a 20% reduction in sales. Our gross margin percentage improved significantly from 31.5% to 38.9% as a percentage of sales as most of our sales reduction was in lower margin products, particularly Bluetooth, and the result of tighter controls of inventory and freight expenses. Additionally, we were able to reduce our operating expense by approximately $181,000 a result of vigorous cost cutting to maintain our profitability in this poor economic climate.
We have decided to begin paying an annual dividend of $.05 per share and hope to continue or increase this amount in future years. We believe paying dividends is another way of providing value to our shareholders.
For the quarter, our pretax income was affected by a $120,000 decline in the value of our mutual fund investments compared to a decline of $172,000 in 2008. We feel confident that much of our investments will be recouped as economic conditions improve".
About Wireless Xcessories Group
Wireless Xcessories Group, Inc. designs, manufactures and distributes accessories for cellular phones. The Company offers in excess of 3,000 items that include batteries, hands free devices, car and travel chargers, as well as a variety of carrying cases. The Company sells to dealers and distributors through an in-house sales force and directly from its website, http://www.wirexgroup.com.