Forward Industries, Inc. (NASDAQ:FORD), a designer and distributor of custom carry and protective solutions, today announced financial results for its first fiscal quarter ended December 31, 2010.
Fiscal 2011 First Quarter Financial Results – Compared to Fiscal 2010 First Quarter:
- Net sales increased $1.8 million, or 45%, to $6.0 million in the 2011 Quarter due to higher sales of diabetic products, which increased $1.1 million, or 38%, and higher sales of “Other Products”, which increased $0.7 million, or 64%.
- Gross profit increased $0.5 million, or 49%, to $1.4 million in the 2011 Quarter primarily due to the increase in net sales as well as increases in other components of cost of goods sold, offset in part by higher materials costs.
- Selling expenses of $0.4 million decreased $17 thousand, or 4%, in the 2011 Quarter primarily due to lower personnel costs.
- General and administrative expenses increased $0.3 million, or 38%, to $0.9 million in the 2011 Quarter primarily due to higher personnel costs.
- Other (expense) income declined $13 thousand to $6 thousand of expense in the 2011 Quarter due primarily to lower average interest rates on slightly lower cash balances compared to the 2010 Quarter while foreign currency losses decreased slightly.
- Net income was $17 thousand in the 2011 Quarter compared to a net loss of $0.2 million in the 2010 Quarter. The improvement resulted from higher gross profit on higher sales, offset in part by higher operating expenses and slightly higher other expense.
Brett M. Johnson, Forward’s President and Chief Executive Officer, commented: “We are pleased to turn in a profitable first quarter, which was largely driven by the sales growth in our diabetic products line. However, we are also pleased with the progress we have made in building sales and diversifying our OEM customer base in our other products line. We believe there is significant opportunity for further progress in Fiscal 2011 as we look to expand and diversify our product lines, distribution channel, and customer base, with the purpose of positioning the Company as a leader in technology accessory offerings.”