HUNTINGDON VALLEY, Pa., May 9, 2008 (PRIME NEWSWIRE) -- The Wireless Xcessories Group, Inc. (Pink Sheets:WIRX), a nationwide manufacturer and distributor of electronic and cellular accessories and creator of private labeled websites for affiliates, announced first quarter 2008 results for the period ended March 31. The Company reported first quarter revenue of $5,915,645, compared to $6,072,976 for the same period in fiscal 2007 or a net decrease of 2.6%.
The Company showed Income from operations of $132,000 or approximately $0.03 per share as compared to $402,000 or approximately $0.09 per share in 2007.
Overall there was a first quarter net loss of $11,000, compared to net income of $276,000 in the same period for 2007. A major contributing factor for the decline is attributable to a decrease in the value of certain foreign mutual funds we hold as an investment.
The Company ended the year with working capital of $7.1 million, and a current ratio of 11.9 to 1.00 compared to $7.0 million and a current ratio of 8.5 to 1.00 at the end of fiscal 2007. The Company has no debt, and total equity was $7,536,368 as of March 31, 2008.
Steve Rade, CEO, stated "Our first quarter operating income fell by $270,000 from 2007. The decline in operating income was a result of a drop in gross margin percentage as a result of our efforts to expand our business base by expanding our lower margin Bluetooth, Memory card and OEM product offerings."
"In regard to our core business, although overall sales declined 2.6% for the quarter, we ended the quarter strong with a record March 2008 sales of $2,265,508 or an increase 11.4% over March, 2007. This momentum has continued into April 2008 where our sales were up by approximately 12.1% over the prior year. This shows that our efforts, started on November 1, 2007, to reorganize our sales department and install a new management team is producing increased sales results. Now that sales are moving in the right direction, our full attention is on improving our overall margins and capitalizing on the new sales opportunities we have created. Additionally, we will continue to look for added efficiencies in our operation and cut costs wherever possible in order to enhance our profitability."
"We believe that the decrease in net asset value of some of our mutual fund investments are temporary and have already rebounded since March 31."
About Wireless Xcessories Group
Wireless Xcessories Group, Inc. designs and distributes a range of accessories for cellular phones throughout the United States and Canada. The Company offers in excess of 3,000 items that include rechargeable batteries, personal and vehicle hands free kits, in-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. Wireless Xcessories also creates private labeled websites, GetAccessories.net, for its dealers.
The Company filed a Form 15 on April 24, 2008, effectively suspending the Company's obligation to file quarterly and annual reports 10QSB AND 1OKSB. The Company's new trading symbol is "WIRX" and you can view our activity on HTTP://www.pinksheets.com.
"Safe Harbor" Statement -- Under the Private Securities Litigation Reform Act of 1995, this press release may contain forward-looking statements that involve risks and uncertainties. Important factors, which could cause actual operating results to differ materially from those in the forward-looking statements, are detailed in filings with the Securities and Exchange Commission made from time to time by the company. Copies of these filings may be obtained by contacting the company or the SEC.