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Forward Reports Fiscal 2012 Results

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.

Stock quotes in this article: FORD 

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