SAN DIEGO, CA--(Marketwire - November 15, 2010) - Franklin Wireless Corp. (
OTCBB:
FKWL), the
market leader in dual-mode WiMAX and CDMA modems for 3G and 4G wireless
broadband data communications, today announced financial results for the
first quarter of fiscal year 2011 ended September 30, 2010.
The company reported an increase in net sales of 223% to $16.6 million for
the quarter ending September 30, 2010, compared with $5.1 million in sales
for the corresponding period of 2009. Net income before tax increased to
$2.1 million for the three month period ending September 30, 2010, compared
with $209,428 for the same period in 2009. The results were driven
primarily by demand for the company's dual-mode 3G/4G USB modems as well as
its single-mode devices including modems and routers. In addition, gross
profit margin percent increased to 29.5% for the first quarter of fiscal
2011 compared to 15.1% for the same quarter last year.
"During the first quarter of our fiscal 2011, Franklin Wireless posted
solid revenue, margin and net income results," said OC Kim, president of
Franklin Wireless. "Increased demand for our dual-mode 3G/4G USB modems
and other products as well as the addition of several new customers helped
drive the overall growth compared with the same quarter one year ago. The
margins for the quarter reflect, among other things, a greater mix of FTI
supplied products, which consisted of the U600 and U210 USB modems. In the
case of the U600, we began shipping this device for the first time to a
tier 1 US carrier during this past quarter."
The company's 10-Q filing for the three month period ending September 30,
2010 is on file with the SEC (
www.sec.gov).
FRANKLIN WIRELESS CORP.
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
(IN THOUSANDS)
September 30, June 30,
2010 2010
-------------- --------------
ASSETS
Cash and cash equivalents $ 11,579 $ 16,108
Accounts receivable 9,126 3,119
Inventories 35 198
Intangible assets, net 2,658 2,859
Deferred tax assets, net 1,672 1,672
Property and equipment, net 456 985
Advance payment to vendor 1,629 458
Other assets 585 496
-------------- --------------
TOTAL ASSETS $ 27,740 $ 25,895
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Trade accounts payable $ 7,495 $ 6,418
Accrued liabilities 588 732
Other liabilities 2,618 3,076
-------------- --------------
TOTAL LIABILITIES 10,701 10,226
-------------- --------------
Stockholders' equity
Common stock 14 14
Additional paid-in capital 7,655 5,556
Retained earnings 10,109 8,982
Treasury stock (1,873) -
Non-controlling interest 966 1,130
Other 168 (13)
-------------- --------------
Total stockholders' equity 17,039 15,669
-------------- --------------
-------------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 27,740 $ 25,895
============== ==============
FRANKLIN WIRELESS CORP.
STATEMENT OF OPERATIONS
UNAUDITED
(IN THOUSANDS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
September 30
2010 2009
--------------- ---------------
Net sales $ 16,563 $ 5,125
Cost of goods sold 11,673 4,353
--------------- ---------------
Gross profit 4,890 772
--------------- ---------------
Operating Expenses
Selling, general and administrative 2,951 577
--------------- ---------------
Total Operating Expenses 2,951 577
--------------- ---------------
Income from operations 1,939 195
=============== ===============
Other income (expense)
Interest income 13 13
Other income (expense), net 161 1
--------------- ---------------
Total other income (expense) 174 14
--------------- ---------------
Income before taxes 2,113 209
Income tax provision/(benefit) 1,150 75
Non-controlling interests in net loss of
subsidiary 164 -
--------------- ---------------
Net Income $ 1,127 $ 134
=============== ===============
Basic earnings per share $ 0.08 $ 0.01
Diluted earnings per share $ 0.08 $ 0.01
Weighted average common shares
outstanding - basic 13,464 13,231
Weighted average common shares
outstanding - diluted 13,629 13,250
About Franklin Wireless
Franklin Wireless Corp. (
OTCBB:
FKWL) is engaged in the design, manufacture
and sale of high speed wireless data products including third generation
("3G") and fourth generation ("4G") modems, routers and modules. Our
current products are focused on widely deployed cellular technologies
including CDMA EVDO Rev A, HSPA, WiMAX and LTE. We were the world's first
supplier of both CDMA EVDO Rev A and dual-mode (CDMA EVDO Rev A/WiMAX)
Universal Serial Bus (USB) modems. Franklin's other products include Wi-Fi
"hotspot" routers (which operate over WiMAX or CDMA networks) and wireless
modules that are generally sold to original equipment manufacturers (OEMs).
Our company's primary customers are wireless carriers who seek innovative,
reliable and cost effective technology solutions for their subscribers.
Our customer base extends from the United States to South America and the
Caribbean.
Franklin Wireless is headquartered in San Diego, California and has a
majority ownership position in Franklin Technology Inc. (FTI), a research
and development facility located in Seoul, South Korea. FTI provides
design, development and manufacturing services to Franklin for its wireless
data products. For additional information, please visit
www.franklinwireless.com.
Safe Harbor Statement:
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.
Contact Information: Contact:
Richard Walker
Franklin Wireless Corp.
+1 858 623 0000
rick.walker@franklinwireless.com