Forward Industries, Inc. (NASDAQ:FORD), a designer and distributor of custom carrying case solutions, today announced financial results for its third fiscal quarter ended June 30, 2010.
Fiscal 2010 Third Quarter Financial
– Compared to the Fiscal 2009 Third Quarter:
Fiscal 2010 Nine-Month Period Financial Results
- Net sales increased $952 thousand, or 23%, to $5.1 million in the 2010 Quarter due primarily to an increase of $0.6 million, or 59%, in “other product sales”. Net sales of “diabetic products” also increased in the 2010 by $0.4 million, or 12%.
- Gross profit increased $240 thousand, or 23%, to $1.3 million in the 2010 Quarter consistent with the sales increase. As a percentage of sales, quarterly gross margin was stable at 25% in the comparable periods.
- Operating expenses increased $89 thousand, or 8%, to $1.2 million in the 2010 Quarter due primarily to higher professional fees due to the adoption of the shareholder rights plan in June 2010, which were offset in part by a reduction in selling personnel costs and related travel and entertainment and automobile allowance expenses, and to a lesser extent, to smaller decreases in other components of general and administrative expenses.
- Other (expense) income (mainly foreign currency transaction losses plus interest income) declined $70 thousand to $7 thousand of expense in the 2010 Quarter compared to $62 thousand of income in the 2009 Quarter due primarily to lower average interest rates on slightly lower average cash balances in the 2010 Quarter and less favorable foreign exchange rates due to US Dollar appreciation against the Euro.
- Net income was $17 thousand, or $(0.00) per share, in the 2010 Quarter compared to net loss of $64 thousand, or $(0.01) per share, in the 2009 Quarter.
– Compared to nine-month period ended June 30, 2009:
- Net sales decreased $0.1 million, or 1%, to $13.6 million in the 2010 Period due to a $0.2 million decline in sales of diabetic products that was nearly offset by an increase in sales of “Other Products”.
- Gross profit increased $0.6 million, or 21%, to $3.2 million in the 2010 Period, due primarily to decreases in our Hong Kong operating expenses and to a lesser degree, lower freight costs and lower materials costs.
- Operating expenses decreased $0.4 million, or 11%, to $3.4 million in the 2010 Period due primarily to reductions in selling personnel costs and related travel, entertainment, and automobile allowance, which were offset in part by higher general and administrative expenses attributed to increased professional fees.
- Other income/expense (mainly foreign currency transaction losses plus interest income) declined $240 thousand to $21 thousand expense in the 2010 Period due primarily to lower average interest rates on slightly lower average cash balances in the 2010 Period.
- Net loss was $0.3 million, or $(0.04) per share, in the 2010 Period compared to net loss of $1.3 million, or $(0.17) per share, in the 2009 Period as a result of the increase in gross profit, decrease in operating expenses, and decrease in income tax expense.
Douglas W. Sabra, Forward’s President and Chief Executive Officer, commented: “I am encouraged that we saw further improvement in our operating results this quarter and that we were able to take the company from an operating loss to slightly above break even for the first time in more than three years. The sales increase in the quarter allowed us to make up for a slow start at the beginning of the fiscal year and bring our year-to-date sales nearly even with last year.