Jones Soda Co. (the Company) (NASDAQ: JSDA), a leader in the premium soda category and known for its unique branding and innovative marketing, today announced results for the second quarter ended June 30, 2010. The Company reported a net loss of $1.6 million, or ($0.06) per share, for the quarter ended June 30, 2010, a decrease of 21% from the second quarter 2009 net loss of $2.0 million, or ($0.07) per share.
“We are in the process of overhauling our sales organization and bringing in proven leadership to strengthen our wholesale and retail execution. This will support our core brands at retail and we believe will lead to important market share gains in the future,” commented William Meissner, President & Chief Executive Officer. “Equally important, we are also pleased to report that our cash position increased versus the prior quarter, making it the first time in 13 quarters that we increased our cash balance. This increase does not include the $1.1 million raised in conjunction with our first draw down on the equity line that closed in July 2010.”
Second Quarter Review – Comparison of Quarters ended June 30, 2010 and June 30, 2009
- Revenue decreased 28% to $5.4 million for the quarter ended June 30, 2010, compared to $7.5 million in the second quarter of 2009.
- Gross profit decreased to $1.3 million for the quarter ended June 30, 2010, compared to $2.1 million in the corresponding period a year ago. The second quarter 2010 included an additional write-down of excess GABA inventory totaling $178,000. For the quarter ended June 30, 2010, gross profit as a percentage of revenue decreased to 24.1%, compared to 27.5% in the second quarter of 2009.
- Operating expenses decreased 29% to $2.8 million, compared to the corresponding period a year ago, and were benefited by cost containment measures including the reductions in workforce enacted during 2009. Offsetting this decrease was a charge to write-off assets as the result of our termination of our sponsorship agreement with the Seattle Seahawks.
- Cash provided by operations during the quarter was $6,000 versus cash used in operations of $1.0 million during the prior year period.
As of June 30, 2010, the Company had cash and cash equivalents of approximately $2.5 million and working capital of $6.3 million. Cash provided by operations during the quarter ended June 30, 2010 totaled $6,000. As of June 30, 2010, inventories were $3.4 million compared to $3.7 million as of December 31, 2009.