Forward Industries, Inc. (NASDAQ:FORD), a leading global provider of mobile technology solutions, today announced financial results for its first fiscal quarter ended December 31, 2011.
Fiscal 2011 First Quarter Financial Results – Compared to fiscal 2010 first quarter results:
- Net sales increased $0.9 million, or 15%, to $6.9 million in the 2012 quarter due to higher sales of OEM Products, which increased $0.2 million, and first time sales of Forward-branded products of $0.7 million.
- Gross profit increased $18 thousand, or 1%, to $1.4 million in the 2012 quarter due to the higher sales volume; however increases in costs of materials that we were unable to pass along to our customers, as well as product mix factors, largely offset the gross profit on such increased sales.
- Sales and marketing expenses increased $0.9 million to $1.3 million in the 2012 quarter primarily due to the investments we made in personnel (and related travel costs), product development, and design in order to develop our Forward-branded retail distribution capability and expand our product range.
- General and administrative expenses increased $0.7 million to $1.6 million in the 2012 quarter primarily due to investments we made in operational, finance and IT personnel to support our Forward-branded business. In addition, higher professional fees, and to a lesser extent, occupancy costs and telecommunication costs, also contributed to the increase.
- Net loss was $1.5 million, or ($0.19) per share, in the 2012 quarter compared to net income of $17 thousand, or $0.00 per share in the 2011 quarter. The increase in net loss was due primarily to the investments in operating expenses made in respect of the 2012 quarter and in support of our Forward-branded business, which were offset, in small part, by higher gross profit and other income.
Brett M. Johnson, Forward’s President and Chief Executive Officer, commented: “It is our strategy to transform Forward Industries into a mobile technology solutions Company that leverages strategic intellectual property partnerships to differentiate our brand. To this end, we have invested heavily in experienced sales, design, product development, operations, and administrative resources, and our large operating loss this quarter reflects this. While we have much further to go, we are pleased to see that our investments in our strategy have begun to bear fruit. Our objective is to generate a return to our shareholders on this large investment and return our company to profitability in coming quarters. As such, we remain focused on cost containment, margin improvement, and building on the sales momentum we gained this quarter. We look forward to updating you on our progress.”