WEST PALM BEACH, Fla., Dec. 20, 2012 (GLOBE NEWSWIRE) -- Forward Industries, Inc. (Nasdaq:FORD), a designer and distributor of custom carry and protective solutions, today announced financial results for its fiscal year ended September 30, 2012.
Fiscal Year 2012 Financial Results – Compared to fiscal year 2011 results:
- Net sales increased $6.6 million, or 29%, to $29.4 million in fiscal 2012 due primarily to higher sales of diabetic products, which increased $5.0 million, and to a lesser extent, higher sales of other products, which increased $1.6 million.
- Gross profit decreased $1.1 million, or 22%, to $4.0 million in fiscal 2012. As a percentage of sales, gross profit declined to 14% in fiscal 2012 from 22% in fiscal 2011. This decline was primarily due to:
- Nonrecurring costs related to the restructuring of our sourcing and quality assurance capability, and the remediation of certain quality issues relating to two major customers.
- Introduction of new and replacement programs with lower gross margins that contributed significantly to overall product mix.
- Increases in costs of materials with respect to several large, long-standing programs, combined, in some cases, with customer price concessions.
- Sales and marketing expenses decreased $0.9 million, or 35%, to $1.7 million in fiscal 2012 due primarily to:
- Lower personnel costs resulting from the restructuring of our sales, marketing, and product development team.
- Lower travel and entertainment expenses.
- Lower advertising and promotion expenses.
- General and administrative expenses increased $0.9 million, or 20%, to $5.6 million in fiscal 2012 due primarily to:
- Higher legal fees and settlement costs incurred in connection with a lawsuit.
- Higher consulting and personnel costs resulting from the restructure of our executive, finance, and IT personnel.
- Net loss from continuing operations increased $1.3 million to $3.3 million, or $(0.41) per share, in fiscal 2012 from $2.0 million, or $0.25 per share in fiscal 2011 due to: decreased gross profit on a higher sales base, higher sales and marketing expenses; higher general and administrative expenses; and an unfavorable change in other income (expense).
- Net loss from discontinued operations was $6.3 million, or $(0.78) per share, in fiscal 2012, compared to $0.9 million, or $(0.11) per share, in fiscal 2011.
Robert Garrett, Jr., Forward's Chief Executive Officer, commented: "Against a challenging operating and economic backdrop, we remain focused on returning our company to profitability by revitalizing and growing our core OEM business and completing our exit from retail.