HUNTINGDON VALLEY, Pa., Dec. 9, 2011 (GLOBE NEWSWIRE) -- The Wireless Xcessories Group, Inc. (WIRX), a nationwide manufacturer and distributor of electronic and cellular accessories, announced unaudited third quarter results ending September 30, 2011.
Sales — Third Quarter
The Company reported third quarter revenue of $5,416,314, compared to $5,223,435 for the same period in fiscal 2010, an increase of 3.7%.
Loss from Operations — Third quarter
The third quarter loss from operations was $93,299 for '11 vs. a loss of $75,576 for '10.
A major difference between Income loss from Operations and reported Net Income was caused by a large increase in the unrealized gains from investment in Marketable Securities in 2010, versus no gain in 2011 due to a change in our accounting treatment of unrealized gains (losses).
Net Loss Comparison (including investments) — Third quarter
The Company had a 2011 third quarter loss of ($21,951) or ($.01) per share, compared to net income of $119,500 or $.03 per share in the same period for 2010.
Sales — Nine months
The Company reported nine month revenue of $15,933,850 compared to $14,984,453 for the same period in fiscal 2010, a net increase of 6.3%.
Loss from Operations — Nine months
The nine month loss from operations was ($149,568) or ($.03) per share compared to ($89,609) in 2010 or ($.02) per share.
The major difference between Loss from Operations and reported Net Loss was caused by an increase in value of the Company's investment in Marketable Securities in 2010 of $230,000 compared to no gain of $12,000 in 2011.
Net Loss Comparison (including investments) — Nine months
The Company showed net loss of ($2,248) or ($.00) per share in 2011, compared to net income of $167,412 or $.04 per share in 2010.
Key Financial Comparisons
The Company's working capital as of September 30, 2011 and December 31, 2010 was approximately $7.3 million. The Company has no debt, and total equity has reached approximately $7,887,459 as of September 30, 2011.
Steve Rade, CEO, stated "Our sales continue to show gains as we were able to achieve an increase of 3.7% in a continuing highly competitive and sluggish market. Our gross margin as a percentage of sales was lower because of additional product obsolescence due to shorter phone lives, added dealer stock rotation privileges and product cost increases which are difficult to pass on to dealers in this environment. Operational expenses in total dropped by 3%, primarily in administrative costs as we continue to tightly control and monitor expenses.
Our investment in and expansion of value added services, in such areas as retail store training, vendor managed inventory programs, and advanced website capabilities have helped grow sales volume. We have also significantly expanded our product lines and are actively working on the development of a brand name higher quality product line that would supplement our efforts in existing dealer markets and open up additional sales channels such as air time carriers and big box retail stores.
About Wireless Xcessories Group
Wireless Xcessories Group, Inc. designs, manufactures and distributes accessories for cellular phones. The Company offers in excess of 5,000 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.