HUNTINGDON VALLEY, Pa., Sept. 16, 2011 (GLOBE NEWSWIRE) -- The Wireless Xcessories Group, Inc. (Pink Sheets:WIRX), a nationwide manufacturer and distributor of electronic and cellular accessories, announced unaudited second quarter results ending June 30, 2011.
Sales-Second Quarter
The Company reported second quarter revenue of $5,358,303 compared to $4,952,000 for the same period in fiscal 2010 or an increase of 8.2%.
Income (Loss) from Operations-second quarter
The second quarter gain from operations was $875 for '11 vs. a loss of $75,957 for '10.
A major difference between Income (loss) from Operations and reported Net Income was caused by a large increase in the unrealized loss 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 Income Comparison (including investments) - Second quarter
The Company had a 2011 second quarter income of $19,703 or $.00 per share, compared to net loss of $35,341 or $.01 per share in the same period for 2010.
Sales-Six months
The Company reported six month revenue of $10,517,536 compared to $9,761,018 for the same period in fiscal 2010, or a net increase of 7.8%.
(Loss) Income from Operations - six months
The six month loss from operations was ($56,269) or ($.01) per share compared to ($13,313) in 2010 or $.00 per share.
The major difference between Income from Operations and reported Net Income was caused by an increase in value of the Company's investment in Marketable Securities in 2010 of $230,000 compared to a gain of $98,000 in 2011.
Net Income Comparison (including investments) — six months
The Company showed net income of $19,999 or ($.00) per shared in 2011, compared to net income of $49,075 or $.01 per share in 2010.
Key Financial Comparisons
The Company ended the year with working capital of approximately $7.5 million, up from 7.0 million at June 30, 2010. The Company has no debt, and total equity has reached approximately $7,909,410 as of June 30, 2011.
Steve Rade, CEO, stated, "Our sales continue to show healthy gains as we were able to achieve a respectable increase of 8.2% in a continuing highly competitive market in the second quarter. Our gross margin percentage decline of the past several quarters seems to stabilized and was flat with last year while we held our
Operational expenses to a less than 1% increase. The net result is that we were able to show flat results from operations in the second quarter as opposed to an operating loss of ($76,000) in 2010.
Our efforts to build sales and profit through our investment in and expansion of value added services in such areas as retail store training, retail store vendor managed inventory programs, and advanced website capabilities coupled by expansion of unique product offerings are starting to pay off.
About Wireless Xcessories Group
Wireless Xcessories Group, Inc. designs, manufactures and distributes accessories for cellular phones. The Company offers in excess of 3,000 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.