Franklin Wireless Continues Strong Sales Trend in Fiscal Third Quarter 2008
| Source: Franklin Wireless Corporation
SAN DIEGO, CA--(Marketwire - May 14, 2008) - Franklin Wireless Corp. (OTCBB : FKWL ), a
developer and marketer of wireless broadband communications devices,
announced strong sales and an increase in profit for the third quarter
fiscal year of 2008, driven by demand for the company's USB modem products.
The company reported net sales increased 129.2 percent to $7.4 million for
the quarter ended March 31, 2008, compared with $3.2 million in sales
during the corresponding period of 2007. Sales during the quarter were
driven by strong demand CDMA USB products -- namely the CDU-680, CDU-650
and CDX-650 USB modem products that were introduced during mid-2007. The
overall sales increase was also due to a continual surge in sales volume in
the U.S. as well as the Caribbean and South American markets. Sales in the
U.S. reached $1.4 million while the Caribbean and South American markets
attributed $6 million in sales during the quarter.
Gross profit increased 82.4 percent to $1.8 million for the three months
ended March 31, 2008, compared with $973,375 for the same period in 2007.
Gross profit was 24 percent of net sales for the quarter compared with 30.2
percent in the fiscal third quarter 2007. The overall decrease in gross
profit as a percent of net sales was primarily attributed to competitive
pricing pressures in the USB modem market.
"Our strong position in the CDMA USB market continues to fuel our
tremendous growth quarter after quarter," said Franklin Wireless President
O.C. Kim. "We continue to bode well in a market that is characterized by
extremely competitive pricing practices. We are also making significant
headway in the WCDMA/HSDPA market with high-end solutions."
Franklin Wireless products are marketed through operators and distributors.
The company offers a full range of mobile broadband solutions for CDMA
1xEV-DO Rev.0 and Rev. A operators as well as WCDMA solutions that include
HSDPA/HSUPA for worldwide broadband carriers.
About Franklin Wireless
Franklin Wireless Corp. (OTCBB : FKWL ) designs and markets wireless
broadband high speed data communication products such as 3rd generation
("3G") wireless broadband modules and modems to operators and distributors
in North and South American countries. The company was founded in 1982 and
is headquartered in San Diego, California. For more information about
Franklin Wireless, please visit www.franklin-wireless.com.
Certain statements in this press release constitute "forward-looking
statements" within the meaning of section 27A of the Securities Act of 1933
and Section 21E of the Securities Exchange Act of 1934. Such
forward-looking statements involve known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or
achievements of the Company to be materially different from any future
results, performance or achievements, expressed or implied by such
forward-looking statements.