HUNTINGDON VALLEY, Pa., Dec. 17, 2013 (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, 2013.
Third quarter 2013 sales were $8,891,407 compared to $9,918,638 for the same period in fiscal 2012 or a decrease of $(10.4) %.
Income (Loss) from Operations-second quarter
The third quarter loss from operations was $(96,639) for the quarter ended September 30, 2013 vs. income from operations of $187,475 for the same period in fiscal 2012.
Net Income (Loss) Comparison-Second quarter
The Company had a 2013 third quarter net loss of $(55,855) or $(.01) per share, compared to net income of $112,621 or $.01 per share in the same period for 2012.
The Company reported nine month revenue of $27,079,802 compared to $27,653,689 for the same period in fiscal 2012, or a net decrease of 2.1%.
Income (Loss) from Operations-nine months
The nine month loss from operations was $(57,132) or $.01 per share compared to Income from operations $482,661 in 2012 or $.09 per share.
Net Income (loss) Comparison—nine months
The Company showed a net loss, after taxes, of $(35,297) or $.01 per share in 2013, compared to net income of $299,882 or $.06 per share in 2012.
Key Financial Comparisons
The Company had working capital of approximately $8.1 million at both September 30, 2013, and at December 31, 2012. The total Company debt was $.2 million, and total equity has reached approximately $8.3 million as of September 30, 2013.
Steve Rade, CEO stated, our reduction in sales was reflective of the lack of new phone releases combined with a slower rate of consumers upgrading their handsets and an overall very competitive market.
The company incurred extra charges in the September quarter related to unforeseen markdowns of close to $300,000 relating principally to the write down of a good portion of our apple iPhone 5 accessories. This was a result of Apple's decision to discontinue the production of the iPhone 5 handsets and non-compatibility issues with the new iPhone 5s and 5c models.
We were able to reduce our operating expenses in response to the sales drop for the Sept quarter as a result of the Company instituting a right sizing and cost reduction program. The full benefit of these reduction programs will be realized over the next few quarters.
We are positioning ourselves for a new round of sales growth through the further development and marketing of our value added services, such as our successful vendor managed inventory program and website technology which targets larger online retailers and the hiring of a Retail Channel Sales Manager to lead our initiative into these markets.
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.
CONTACT: Wireless Xcessories Group Dan Kenderdine 800-233-0013 ext. 1404Source:Wireless Xcessories Group