Forward Industries, Inc. (NASDAQ:FORD), a designer and distributor of custom carry and protective solutions, today announced financial results for its fiscal year ended September 30, 2010.
Fiscal 2010 Financial Results – Compared to Fiscal 2009:
- Net sales increased $1.6 million, or 9%, to $19.0 million in Fiscal 2010 due to higher sales of diabetic products, which increased $1.1 million, or 8%, and higher sales of “Other Products”, which increased $0.5 million, or 10%.
- Gross profit increased $0.6 million, or 18%, to $4.2 million in Fiscal 2010 primarily due to the $1.6 million increase in net sales and, to a lesser extent, decreases in Hong Kong costs and freight, duties and customs costs.
- Selling expenses decreased $0.4 million, or 17%, to $2.2 million in Fiscal 2010 from $2.6 million in Fiscal 2009 due primarily to reductions in selling personnel costs.
- General and administrative expenses increased $1.3 million, or 57%, to $3.6 million in Fiscal 2010. Of this increase, approximately $1.1 million was attributable to developments leading up to and including the Settlement Agreement entered into in August 2010.
- Other income declined $0.2 million to $10 thousand in Fiscal 2010 due primarily to lower average interest rates on slightly lower cash balances compared to Fiscal 2009.
- Net loss was $1.7 million in Fiscal 2010 compared to net loss of $1.4 million in Fiscal 2009. The higher net loss is primarily the result of higher general and administrative expenses (including the approximately $1.1 million attributable to the Settlement Agreement referred to above) and to a lesser extent lower “other income”, offset in part by higher gross profit, lower selling expenses, and lower income tax expense.
Brett M. Johnson, Forward’s President and Chief Executive Officer, commented: “During my brief time at Forward, I am impressed by the capabilities of the Organization and even more confident than ever of the prospects to expand.