Forward Industries, Inc. (NASDAQ:FORD), a designer and distributor of custom carry and protective solutions, today announced financial results for the three and nine months ended June 30, 2011.
Brett M. Johnson, Forward’s President and Chief Executive Officer, commented: “We are pleased with the growth in both sales and gross profit that we are achieving in our OEM business for the reported periods. Most importantly, I am pleased to announce that on a standalone basis, Forward’s OEM Division would have been profitable in both the 2011 quarter and 2011 year-to-date period. Our net loss in these periods directly reflects the ongoing investments we are making in diversifying our selling channels and expanding our product portfolio.”
Mr. Johnson continued: “In our OEM business, we have recently been awarded several large programs by two major customers. We anticipate that these programs will begin to contribute meaningfully to revenues beginning in late fiscal 2012. We are committed to growing our OEM business and we are encouraged by the momentum we are experiencing in this channel. At the same time, there are also headwinds in this market, as we continue to face a very price constrained environment and are looking at increases in supplier prices.
“Our strategy is to leverage our design, logistics, and sourcing expertise to build a global, multi-channel (retail, corporate, online, as well as OEM) consumer electronics accessory brand that defines itself through leading edge technology. We believe that there are attractive opportunities for substantial growth through the expansion and diversification of our product lines, distribution channels, geographies, and customer base.“In order to execute on this strategy, we have made significant investments in experienced sales, design, product development, operations, and administrative personnel, which has driven our level of operating expenses up. We will continue to invest in resources and anticipate that the effects of these investments in our strategy will not be fully reflected in operating expenses until we are well into Fiscal 2012.