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
Results – Compared to
the Fiscal 2009 Third Quarter:
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
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
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
Fiscal 2010 Nine-Month Period Financial Results – 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
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.