HUNTINGDON VALLEY, Pa., Aug. 10, 2010 (GLOBE NEWSWIRE) -- The Wireless Xcessories Group, Inc. (Pink Sheets:WIRX), a nationwide manufacturer and distributor of electronic and cellular accessories, announced unaudited second quarter results ending June 30, 2010.
Sales-Second Quarter
The Company reported second quarter revenue of $4,952,661 compared to $4,435,000 for the same period in fiscal 2009 or an increase of 11.7%.
Loss from Operations-second quarter
The second quarter loss from operations was $76,000 for '10 vs. income of $180,000 for '09.
Net (Loss) Income Comparison-Second quarter
The Company had a total 2010 second quarter net loss of $109,000 ($.03) per share, compared to net income of $290,000 or $.07 per share in the same period for 2009. The main difference between (Loss) Income from Operations and reported Net (Loss) Income was caused by a large increase in value of the Company's investment in Marketable Securities in 2009 versus a decline in 2010.
Sales-six months
The Company reported six month revenue of $9,761,018 compared to $9,143,484 for the same period in fiscal 2009, or a net increase of 6.8%
(Loss) Income from Operations-six months
The six month loss from operations was $13,000 or $.00 per share compared to $467,000 profit in 2009 or $.11 per share.
Net Income Comparison -- six months
The Company showed total net income of $49,000 or ($.01) per share in 2010, compared to net income of $397,500 or $.10 per share in 2009. The major difference between Income from Operations and reported Net Income was caused by an increase in value of the Company's investment in Marketable Securities in 2009 of $230,000 compared to a 6 month gain of $98,000 in 2010.
Key Financial Comparisons
The Company ended the period with working capital of approximately $7.2 million, up from $7.0 million at June 30, 2009. The Company has no debt, and total equity has reached approximately $7,700,000 as of June 30, 2010. The equity number was effected by dividend of $.10 per share totaling $400,000 which was paid out during the June 2010 Quarter.
Steve Rade, CEO, stated, "We continued to build our sales base as we showed a sales increase of approximately 12% for the quarter by increasing our promotions and offering aggressive pricing to match our competitors. Unfortunately, our second quarter operating income fell from $180,000 in 2009 to a loss of $76,000 in 2010. This drop in income is directly attributable to the implementation of new business software in early May 2010 which fell far short of vendor promises and assurances relating to system performance and functionality. This resulted in an enormous amount of valuable management and staff time and attention being diverted from selling customers and managing operations to focusing on fixing numerous problems and performing basic functions while coping with unacceptable response times. Additionally, the Company incurred extra expenses in terms of overtime and in paying for vendor fixes and modifications to get the basics done."
The Company is putting in a massive effort in terms of time and expense and has put maximum pressure on our vendor to get it right and we hope to see vast improvement by the end of the September 2010 quarter.
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.