Forward Reports Fiscal 2013 Second Quarter Results

WEST PALM BEACH, Fla., May 13, 2013 (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, 2013.

Fiscal 2013 Second Quarter Financial Results – Compared to the fiscal 2012 second quarter results:
  • Net sales increased $1.6 million, or 25%, to $7.8 million in the 2013 quarter due primarily to higher sales of diabetic products, which increased $1.6 million. Sales of Other Products were consistent at $1.5 million.
  • Gross profit increased $0.4 million to $1.5 million, or 20% of net sales, in the 2013 quarter due primarily to the higher sales level achieved and cost savings realized from the restructure of our Asia-based sourcing and quality assurance operations.
  • Sales and marketing expenses increased $0.2 million, or 54%, to $0.5 million in the 2013 quarter due primarily to higher personnel costs resulting from the restructure and expansion of our sales and sales support teams.
  • General and administrative expenses decreased $0.5 million, or 41%, to $0.8 million in the 2013 quarter due primarily to lower professional fees and personnel costs resulting from the restructure of our executive, finance, and IT teams.
  • Other income, net, increased to $81 thousand in the 2013 quarter from $34 thousand in the 2012 quarter due primarily to net realized and unrealized gains on investments in marketable securities.
  • Net income from continuing operations was $0.3 million, or $0.04 per basic and diluted share, in the 2013 quarter compared to a net loss of $0.5 million, or $(0.07) per basic and diluted share, in the 2012 quarter.
  • Net loss from discontinued operations was $0.1 million, or $(0.02) per basic and diluted share, in the 2013 quarter, compared to $1.0 million, or $(0.12) per basic and diluted share, in the 2012 quarter.

Fiscal 2013 Six-Month Period Financial Results – Compared to the fiscal 2012 six-month results:
  • Net sales increased $2.4 million, or 19%, to $14.8 million in the 2013 period due primarily to higher sales of diabetic products, which increased $2.8 million. Sales of Other Products decreased $0.3 million, or 9%, to $3.3 million.
  • Gross profit increased $0.7 million to $3.0 million, or 20% of net sales, in the 2013 period due primarily to the higher sales level achieved and cost savings realized from the restructure of our Asia-based sourcing and quality assurance operations.
  • Sales and marketing expenses increased $0.4 million, or 59%, to $1.0 million in the 2013 period due primarily to higher personnel costs resulting from the restructure and expansion of our sales and sales support teams.
  • General and administrative expenses decreased $0.9 million, or 33%, to $1.8 million in the 2013 period due primarily to lower professional fees and personnel costs resulting from the restructure of our executive, finance, and IT teams.
  • Other income, net, increased to $0.3 million in the 2013 period from $62 thousand in the 2012 period due primarily to net realized and unrealized gains on investments in marketable securities.
  • Net income from continuing operations was $0.5 million, or $0.06 per basic and diluted share, in the 2013 period compared to a net loss of $0.5 million, or $(0.07) per basic and diluted share, in the 2012 quarter.
  • Net loss from discontinued operations was $0.1 million, or $(0.02) per basic and diluted share, in the 2013 quarter, compared to $1.0 million, or $(0.12) per basic and diluted share, in the 2012 period.

Robert Garrett, Jr., Forward's Chief Executive Officer, commented: "Our financial results for our second fiscal quarter more fully reflect the effects of the operational restructuring plan we embarked upon in June 2012. With the restructuring largely behind us, we have turned our full focus to growing our top line and improving our gross margin. To that end, we have dedicated our newly restructured and expanded sales support team to providing more proactive and responsive support to our existing customer base, which we believe will create efficiencies for our sales team and accelerate new account development. We believe that the expansion of our customer base is essential to overcoming the challenges we continue to face with respect to the volatility of our sales levels and product mix and the impact they have on our gross margins.

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