HUNTINGDON VALLEY, Pa., Aug. 14, 2014 (GLOBE NEWSWIRE) -- The Wireless Xcessories Group, Inc. (WIRX), a nationwide manufacturer and distributor of electronic and cellular accessories, announced second quarter results for the period ending June 30, 2014.
SALES
The Company reported Second quarter revenue of $8,778,281 compared to $9,639,357 for the same period in fiscal 2013, a decrease of 8.9%.
Net Income Comparison
The Company had 2014 second net loss of $(19,231) or $(.01) per share, compared to a net income of $41,424 or $.01 per share in the same period for 2013.
Key Financial Comparisons
The Company had working capital of approximately $8.1 million at June 30, 2014 compared to $8.3 million at December 31, 2013. The Company had total equity of approximately $8,279,264 as of June 31. 2014.
Steve Rade, CEO, stated, "Our second quarter sales were off by 8.9% but were up by 42% over the first quarter of 2014 compared to a 12% increase for the same period in 2013, which is very encouraging."
Our results improved during the second quarter of 2014 as the weather normalized and dealer handset allocation significantly improved, resulting in improvement of dealer's reorders and an easing of the overstock situation coupled with the addition of a new Director of Business Strategy who joined us in early May, 2014.
Our new Director of Business Strategy has full responsibility for the sales and vendor growth of the organization, and, has already shown remarkable progress in restoring our sales growth momentum by re energizing our sales force, enhancing our Vendor relationships and product assortments and adding 4 new Vendor managed inventory accounts.
Additionally, we have made major progress in developing new markets and opportunities by enhancing the marketability of our VMI program, capitalizing on the growing cell phone repair business by developing a cellphone repair parts division, Phone Surgeons parts, a Wireless Xcessories Division, and have entered into a distribution agreement with a major national retailer, who will begin shipping in the third quarter of 2014.
Our gross margins lagged as we became more aggressive to maintain market share and the continuing change in our sales mix to lower margin branded product to keep pace with industry trends and demand.
Continuing the positive enhancements to the organization this year, we have hired a new high level experienced Senior Vendor Program Manager starting on August 25, 2014 to continue to add new products to enhance our product offerings, to gain the best in class pricing across all product lines to enhance our customers growth, as well as, the company's. Additionally, the Senior Vendor Program Manager will enable us to bring additional incentives and programs to our customer base as well as enhance our ability to go deeper into new verticals.
The Company in 2013 began a right sizing and cost cutting program in anticipation of the difficult market conditions and was able to reduce operating expense by over $400,000 per quarter which included an over 30% reduction in the work force.
About Wireless Xcessories Group
Wireless Xcessories Group, Inc. designs, manufactures and distributes accessories for cellular phones. The Company offers in excess of 2,000 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.