HUNTINGDON VALLEY, Pa., Oct. 1, 2013 (GLOBE NEWSWIRE) -- The Wireless Xcessories Group, Inc. (OTC:WIRX), a leading provider of cell phone accessories to dealers, distributors, retailers, agents and airtime carriers throughout the United States and Canada, today announced unaudited six month and second quarter results for the period ending June 30, 2013.
Three-month financial results for the period ended June 30, 2013
The Company reported second quarter of 2013 revenue of $9,639,357 compared to $9,831,816 for the same period in fiscal 2012.
The second quarter loss from operations was $(18,379) for the quarter ended June 30, 2013 compared to income from operations of $89,570 for the same period in fiscal 2012.
The Company had a 2013 second quarter net loss of $(14,095) or $0.00 per share, compared to net income of $48,694 or $0.02 per share in the same period for 2012. Included in the second quarter 2013 results is a charge of approximately $95,000 regarding stock based compensation related to the issuance of the Company's common stock.
Six-month financial results for the period ended June 30, 2013
The Company reported six-month revenue of $18,188,395 compared to $17,735,051 for the same period in fiscal 2012, or a net increase of 2.6%.
The six month income from operations was $39,507 or $0.01 per share compared to $297,756 in 2012 or $0.07 per share. 2013 income was impacted by stock-based compensation, gross margin was impacted by the mix of items sold and small increase in sales and marketing costs as related to the VMI program.
Net income, after taxes, of $20,558 or $0.01 per share in 2013, compared to net income of $193,221 or $0.05 per share in 2012.
Key Financial Balance Sheet Items
The Company had working capital of approximately $8.2 million at June 30, 2013, up from $8.1 million at December 31, 2012. The total Company debt was $0.3 million, and total equity has reached approximately $8.5 million or $2.10 per share as of June 30, 2013.
CEO, Steve Rade stated the following:
"Regarding our previous plans to become an SEC reporting company, we have decided to withdraw our Form 10 application and reconsider this process in nine to twelve months. We based this decision on the fact that financial results have not been up to expectations and we are considering strategic alternatives and opportunities which could enhance shareholder value."
About Wireless Xcessories Group
Wireless Xcessories Group, Inc. designs, manufactures and distributes accessories for cellular phones. The company offers in excess of 3,500 items that include batteries, hands free devices, car and travel chargers, as well as a variety carrying solutions. The Company sells to dealers and distributors through an in-house sales force and directly from its website, http://wirexgroup.com
Forward-looking Statements
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words or expressions such as "anticipate," "plan," "will," "intend," "believe" or "expect" or variations of such words and similar expressions are intended to identify such forward-looking statements.
These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including, without limitation, statements made with respect to expectations with respect to our lack of profitable operating history, changes in our business, potential need for additional capital, fluctuations in demand; changes to economic growth in the U.S. economy; and government policies and regulations, including, but not limited to those affecting the Internet, all as set forth in our Annual Report for the year ended December 31, 2012. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of Wireless Xcessories Group, Inc. and are difficult to predict. Wireless Xcessories Group, Inc. undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events or otherwise.