Jones Soda Co. (the Company) (NASDAQ: JSDA), a leader in the premium soda category and known for its unique branding and innovative marketing, today announced results for the first quarter ended March 31, 2010. The Company reported a net loss of $2.1 million, or ($0.08) per share, for the quarter ended March 31, 2010, a decrease of 18% from the first quarter 2009 net loss of $2.6 million, or ($0.10) per share. Michael O’Brien, Chief Financial Officer, said, “Over the last 12 months we have streamlined our business by lowering overhead costs and focusing our resources on our core glass bottle business. With this focus, we have achieved improved year-over-year bottom-line results on lower case volumes and lower revenues.” First Quarter Review – Comparison of Quarters ended March 31, 2010 and March 31, 2009
Revenue decreased 45% to $3.9 million for the quarter ended March 31, 2010, compared to $7.1 million in the first quarter of 2009.
Gross profit decreased to $808,000 for the quarter ended March 31, 2010, compared to $1.4 million in the corresponding period a year ago. For the quarter ended March 31, 2010, gross profit as a percentage of revenue increased to 20.8%, compared to 20.4% in the first quarter of 2009.
Operating expenses decreased 29% to $2.9 million, compared to the corresponding period a year ago and were benefited by cost containment measures including the reductions in workforce enacted during 2009.
Cash used in operations during the quarter decreased significantly to $2.5 million, versus cash used in operations of $4.3 million during the prior year period.
“We believe in the strength of the Jones Soda brand, but our failure to actively promote and create retail marketing programs has slowed our same-store sales in several markets. We are realigning our resources to direct targeted funding for new marketing programs and to address gaps in our core product portfolio, as well as to secure and grow larger distributor and national retail accounts. We continue to explore strategic partnerships and financing options that would be beneficial to our Company and shareholders, and give us the necessary funding to create sustained growth with our brands. The beverage business is not complex, Jones overcomplicated its model and inadvertently limited its resources to compete effectively. Our plan going forward is to support our core brands at retail and compete in proven, high-growth segments with brand ideas that connect with consumers,” commented William Meissner, President & Chief Executive Officer.