Wireless Telecom Group, Inc. (NYSE Amex: WTT) announced today results for the first quarter ended March 31, 2011.
For the quarter ended March 31, 2011, the Company reported net sales from continuing operations of $6,077,000, compared to $6,137,000 for the same period in 2010.
The Company also reported net income from continuing operations of $386,000 or $0.02 per diluted share for the first quarter of 2011, compared to net income of $320,000, or $0.01 per diluted share, for the first quarter of 2010, an increase of 21%.
For the quarter ended March 31, 2010, the Company reported a net loss from discontinued operations of $(1,284,000) or $(0.05) per diluted share. The loss in 2010 from discontinued operations consisted of an operating loss of $(675,000), or $(0.03) per diluted share and an additional loss of $(609,000), or $(0.02) per diluted share, which reflected a change in the estimated fair value and cost to dispose of the net assets of Willtek Communications, GmbH.
Paul Genova, CEO of Wireless Telecom Group, Inc. stated “The first quarter of 2011 included severance charges of approximately $100,000 due to the implementation of a cost reduction plan in January 2011 which will benefit us over the remainder of the year. We also retired a low margin product, the 20 watt PIM tester, from our portfolio and sold all remaining inventory. The sale of these units had a onetime negative effect on our gross profit margin in the first quarter of approximately 2% or $125,000. In association with the elimination of this product we had a positive adjustment to net income from continuing operations of $240,000 from the reversal of an associated trade-in warranty.”
Continued Genova, “In 2011, we will continue to focus our efforts to increase revenue growth and improve earnings results from all of our brands. We currently maintain an excellent cash position, have no operating debt and we have a favorable current ratio of approximately 12:1, which significantly exceeds the industry average. We are very encouraged by the recent increased order activity of our Microlab components for deployment in the expanding field of distributed antenna systems and look forward to fulfillment in 2011 of our $1.5M Boonton order with the U.S. Navy.”