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Forward Reports Fiscal 2014 Second Quarter Results

WEST PALM BEACH, Fla., May 15, 2014 (GLOBE NEWSWIRE) -- Forward Industries, Inc. (Nasdaq:FORD), a designer and distributor of custom carry and protective solutions, today announced financial results for its second fiscal quarter ended March 31, 2014.

After reporting annual operating income in fiscal 2013 for the first time since fiscal 2006, Forward continued to generate operating income of $64 thousand for the first six months of fiscal 2014, despite a softer than anticipated second quarter during which Forward incurred a loss. Key financial results for the fiscal 2014 first quarter and for the fiscal 2014 six-month period, compared to the fiscal 2013 first quarter and fiscal 2013 six-month period, are as follows:

Fiscal 2014 Second Quarter Financial Results – Compared to the Fiscal 2013 second quarter results:
  • Net sales decreased $1.1 million, or 14%, to $7.0 million in the 2014 quarter due to lower sales of Diabetic products and Other products, which decreased $0.5 million, and $0.5 million, respectively, in the 2014 quarter.
  • Gross profit decreased $0.1 million to $1.4 million, or 21% of net sales, in the 2014 quarter, compared to $1.5 million, or 20% of net sales, in the 2013 quarter.
  • Sales and marketing expenses increased $0.2 million, or 42%, to $0.7 million in the 2014 quarter due primarily to higher personnel costs resulting from the expansion of our sales and sales support departments, as well as higher travel and entertainment costs related to sales support and development.
  • General and administrative expenses increased $41 thousand, or 5%, to $0.8 million in the 2014 quarter due primarily to higher professional fees incurred in the 2014 quarter.
  • Other expense (income), net, shifted to $148 thousand of expense in the 2014 quarter compared to $(81) thousand of income in the 2013 quarter primarily as a result of the change in the fair value of warrants.
  • Net (loss) income from continuing operations was $(0.3) million, or $(0.04) per basic and diluted share, in the 2014 quarter compared to $0.3 million, or $0.04 per basic and diluted share, in the 2013 quarter.
  • Net loss from discontinued operations was $18 thousand, or $(0.00) per basic and diluted share, in the 2014 quarter, compared to $0.1 million, or $(0.02) per basic and diluted share, in the 2013 quarter.

Fiscal 2014 Six-Month Period Financial Results – Compared to the fiscal 2013 six-month results:
  • Net sales increased $0.4 million, or 2%, to $15.1 million in the 2014 period due primarily to higher sales of Diabetic products, which increased $0.7 million, which was offset, in part, by lower sales of Other products, which decreased $0.4 million in the 2014 period.
  • Gross profit increased $0.3 million to $3.2 million, or 21% of net sales, in the 2014 period, compared to $3.0 million, or 20% of net sales, in the 2013 period.
  • Sales and marketing expenses increased $0.4 million, or 40%, to $1.3 million in the 2014 period due primarily to higher personnel costs resulting from the expansion of our sales and sales support departments, as well as higher travel and entertainment costs related to sales support and development.
  • General and administrative expenses decreased $0.2 million, or 10%, to $1.7 million in the 2014 period due primarily to lower personnel costs, travel and entertainment costs, and occupancy costs, incurred in the 2013 period in connection with our restructuring.
  • Other expense (income), net, shifted to $174 thousand of expense in the 2014 period compared to $(0.3) million of income in the 2013 period primarily as a result of the change in the fair value of warrants.
  • Net income from continuing operations decreased to $64 thousand, or $(0.1) per basic and diluted share, in the 2014 period from $0.5 million, or $0.06 per basic and diluted share, in the 2013 period.
  • Net loss from discontinued operations was $14 thousand, or $(0.00) per basic and diluted share, in the 2014 period, compared to $0.1 million, or $(0.02) per basic and diluted share, in the 2013 period.

Robert Garrett, Jr., Forward's Chief Executive Officer, commented: "While we are disappointed with the lower than anticipated sales volume from several of our key customers this quarter, we continue to believe our ability to provide innovative and differentiated solutions to our existing and prospective customers will result in long term growth. However, we remain vigilant in evaluating the effectiveness of the investments we made in our sales and sales support departments as we seek to maintain a disciplined balance between investing in sales growth and cost control.

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