This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Forward Reports Fiscal 2011 Second Quarter Results

Stocks in this article: FORD

Forward Industries, Inc. (NASDAQ:FORD), a designer and distributor of custom carry and protective solutions, today announced financial results for its second fiscal quarter ended March 31, 2011.

Fiscal 2011 Second Quarter Financial Results – Compared to Fiscal 2010 Second Quarter:

  • Net sales increased $0.6 million, or 13%, to $5.0 million in the 2011 Quarter due to higher sales of diabetic products, which increased $0.4 million, or 11%, and higher sales of Other Products, which increased $0.2 million, or 23%.
  • Gross profit increased $0.2 million, or 16%, to $1.2 million in the 2011 Quarter primarily due to the increase in net sales and to a lesser extent, decreases in Hong Kong costs and freight, duties, and customs. These improvements were offset, in part, by higher materials costs due largely to new product launches.
  • Selling expenses of $0.7 million increased $0.1 million, or 24%, in the 2011 Quarter primarily due to higher personnel costs, and to a lesser extent, higher promotion and sampling costs.
  • General and administrative expenses of $1.1 million increased $0.5 million, or 99%, in the 2011 Quarter primarily due to higher personnel costs and related travel and entertainment expenses. To a lesser extent, higher professional fees also contributed to the increase.
  • Other income (expense) rose $74 thousand to $53 thousand of income in the 2011 Quarter due primarily to foreign currency transaction gains compared to losses in the 2010 Quarter, and to a lesser extent, to an increase in interest income attributable to interest on a note receivable.
  • Net loss was $0.6 million, or ($0.07) per share, in the 2011 Quarter compared to a net loss of $0.1 million, or ($0.01) per share, in the 2010 Quarter. This resulted from higher operating expenses (primarily general and administrative expenses), which were offset, in part, by higher gross profit and other income.

Fiscal 2011 Six-Month Period Financial Results – Compared to six-month period ended March 31, 2010:

  • Net sales increased $2.4 million, or 28%, to $11.0 million in the 2011 Period due to higher sales of diabetic products, which increased $1.5 million, or 23%, and higher sales of Other Products, which increased $0.9 million, or 45%.
  • Gross profit increased $0.6 million, or 32%, to $2.5 million in the 2011 Period primarily due to the increase in net sales and to a lesser extent, decreases in Hong Kong costs and freight, duties, and customs. These improvements were offset, in part, by higher materials costs.
  • Selling expenses of $1.1 million increased $0.1 million, or 11%, in the 2011 Period primarily due to higher personnel costs, and to a lesser extent, higher promotion and sampling costs, and postage costs.
  • General and administrative expenses of $2.0 million increased $0.8 million, or 66%, in the 2011 Period primarily due to higher personnel costs and related travel and entertainment expenses. To a lesser extent, higher professional fees (incurred in connection with effort to acquire Flash Ventures, Inc.), public costs, and office expenses also contributed to the increase.
  • Other income (expense) rose $61 thousand to $47 thousand of income in the 2011 Period due primarily to foreign currency transaction gains compared to losses in the 2010 Period and to a lesser extent, to an increase in interest income attributable to interest on a note receivable.
  • Net loss was $0.5 million, or ($0.07) per share, in the 2011 Period compared to a net loss of $0.3 million, or ($0.04) per share, in the 2010 Quarter. This resulted from higher operating expenses (primarily general and administrative expenses), which were offset, in part, by and higher gross profit and other income.

Brett M. Johnson, Forward’s President and Chief Executive Officer, commented: “We continue to make steady progress in increasing our level of sales. We are particularly heartened by new customer revenues, which speaks to broadening our customer base, which is critical to internally generated growth. As we implement our strategy to increase our selling capability, develop new products, and develop a retail sales channel, we have hired top-notch sales and operations professionals. This does not come without cost, and it is the investment in selling, general, and administrative expense that is, for the most part, the cause for the operating losses in fiscal 2011 and unfavorable comparisons with last year. We anticipate that the investment in operating expenses will be in greater evidence for the remainder of the year as the cost of these hires kicks in for full reporting periods.”

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,712.17 +34.27 0.21%
S&P 500 1,950.21 -0.61 -0.03%
NASDAQ 4,456.5780 +3.7860 0.08%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs