HUNTINGDON VALLEY, Pa., Aug. 15, 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 second quarter 2008 results for the period ended June 30, 2008. The Company reported second quarter revenue of $6,556,000, compared to $6,080,000 for the same period in fiscal 2007 or a net increase of 7.8%.
The Company had 2008 second quarter net income of $ 81,000 or $ .02 per share, compared to net income of $188,000 or $.04 per share in the same period for 2007.
For the six months ended June 30, 2008, revenues were $12,471,000, compared to $12,153,000 in 2007, or a net increase of 2.6%.
Total net income was $69,000 or $.02 per share for the six months ended June 30, 2008 compared to $.10 per share in the same period in 2007.
The Company had working capital of $7.0 million, at both December 31, 2007 and June 30, 2008 but improved its current ratio from 8.5 to 1.00 to 9.8 to 1.00 for the respective periods. The Company has no debt, and total equity was $7,478,000 as of June 30, 2008.
During April, 2008 the Company purchased a final total of 165,100 shares of the 200,000 shares authorized of its stock at a price of $.83 per share under the stock repurchase program approved by the Board of Directors in December, 2007.
Steve Rade, CEO, stated, "Our sales were up in the second quarter by 7.83% while our income before taxes decreased by $181,000 from the same period in 2007. The decline in operating income was primarily attributable to a drop in our gross margin percentage as a result of our plan to expand the sale of lower margin Bluetooth, Memory card and OEM products at competitive prices.
"On a year to date basis our Pretax Income was affected by the result of an $187,000 loss on Marketable Securities in 2008 versus $43,000 of net gains in 2007, or a net swing of $230,000 due to negative stock market conditions.
"In regard to our core business, we have reversed the down trend of late 2007 and early 2008 and have now shown five consecutive months of sales increases including a record July 2008. We are excited about the customers that have been added and their potential to generate higher margins. Additionally, we will continue to look for added efficiencies in our operation and cut costs wherever possible in order to enhance our profitability."
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, www.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.
You can view a copy of the Company's internal financial statements as of and for the six months ended June 30, 2008 by going to our website address http://www.wirexgroup.com.