HUNTINGDON VALLEY, Pa., June 17, 2011 (GLOBE NEWSWIRE) -- The Wireless Xcessories Group, Inc. (Pink Sheets:WIRX), a nationwide manufacturer and distributor of electronic and cellular accessories, announced first quarter results ending March 31, 2011.
SALES
The Company reported First quarter revenue of $5,159,200 compared to $4,808,000 for the same period in fiscal 2010, an increase of 7.3%.
Net Income Comparison
The Company had 2011 first quarter net loss of $(16,400) or $.00 per share, compared to net income of $159,000 or $.04 per share in the same period for 2010.
Income from Operations
1st quarter loss from operations was ($57,900) for '11 vs. income of $63,000 for '10.
The difference between Income from Operations and reported Net Income was caused by the combination of interest income, realized gains on investments and tax credits in 2011.
Key Financial Comparisons
The Company had working capital of approximately $7.4 million at March 31, 2011, down from $7.7 million at March 31, 2010 partially as a consequence of dividends of $400,000 paid last year. The Company has no debt, and total equity has reached approximately $7,875,000 as of March 31, 2011.
Steve Rade, CEO, stated "We continue to pursue our objective of increasing our sales base and market share in a highly competitive industry environment, with continuing pricing pressures. In the first quarter we were able to increase our sales by 7% but experienced continued gross margin percentage pressure which resulted in a small operating loss for the quarter.
"To build sales and profit, we are looking at creative ways to supplement our core dealer customer base by developing unique product categories that will be sold and marketed in new targeted market channels.
"The Company continued its cost cutting and restructuring efforts which resulted in only a 3% increase in operating expenses (mostly in selling and service related expenses) while sales grew by 7% in comparing the first quarter 2011 to 2010."
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.