HUNTINGDON VALLEY, Pa., May 2, 2011 (GLOBE NEWSWIRE) -- The Wireless Xcessories Group, Inc. (Pink Sheets:WIRX), a nationwide manufacturer and distributor of electronic and cellular accessories, announced fourth quarter and 2010 year end results ending December 31, 2010.
SALES
The Company reported fourth quarter revenue of $ 5,706,847 compared to $ 4,260,000 for the same period in 2009, or an increase of 34%. Full year comparisons were revenue of $ 20,691,000 compared to $ 17,934,000 for 2009, an increase of approximately 15%.
Net Income Comparison
The Company had a 2010 fourth quarter net loss of $ 178,000 or $ 0.03 per share, compared to net profit of $ 181,020 or $ 0.03 per share in the same period for 2009. Full year comparisons were a net loss of $ 10,751 or $ 0.00 per share, compared to net income of $ 908,687 or $ 0.22 per share in the same period for 2009.
Income from Operations
12 month Income (loss) from operations was $ (56,271) for fiscal year 2010 vs. $ 768,547 for 2009.
Fourth quarter Income from operations were $ 33,338 for fiscal 2010 vs. $ 98,132 in 2009.
A major difference between Income from Operations and reported Net Income was caused by a large increase in the value of unrealized gains from the Company's investment in Marketable Securities in 2009, versus no gain in 2010 due to a change in our accounting treatment of unrealized gains. This affected the fourth quarter of 2010 as we adjusted $ 230,000 of unrealized gains which were included in the nine month results, through September 30, 2010.
Key Financial Comparisons
The Company ended the year with working capital of approximately $ 7.3 million, down from approximately $ 7.6 million at December 31, 2009. The Company has no debt, and total equity is approximately $ 7,832,000 as of December 31, 2010.
Management Comments
Steve Rade, CEO, stated, "We achieved our objective of increasing our sales base and market share in a highly competitive industry environment, with increasing carrier restrictions. In the fourth quarter we were able to increase our sales by 34% which achieved a 15% total increase for the year. However, our net profit was affected as our gross margin percentage was negatively impacted by our aggressive pricing to match or beat our competitors, coupled with a change in our sales mix to lower margin OEM product to keep pace with industry trends and demands.
The Company continued its cost cutting and restructuring leading to a modest increase of 1% in operating expenses in the fourth quarter 2010 compared to 2009."
During 2010, we made significant progress through our investment in technology, employee upgrades, improved productivity, and product line expansion. In 2011, we plan to fully capitalize on these efforts, particularly in enhancing our value added service capabilities. These services include Vendor Managed Inventory, a new B2C web site program, and Retailer sales training programs. We expect to be in a position to regain our profitability to take full advantage of market conditions as they begin to 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.