Forward Reports Fiscal 2013 Third Quarter Results

WEST PALM BEACH, Fla., Aug. 12, 2013 (GLOBE NEWSWIRE) -- Forward Industries, Inc. (Nasdaq:FORD), a designer and distributor of custom carry and protective solutions, today announced financial results for its third fiscal quarter ended June 30, 2013.

Forward generated operating income of $0.5 million in its fiscal 2013 third quarter, marking it as the company's second successive quarter resulting in positive operating income. Compared to an operating loss of $(0.6) million in its fiscal 2012 third quarter, the improvement was primarily due to increased gross profit combined with lower general and administrative expenses. Other key financial results for Forward's fiscal 2013 third quarter, compared to its fiscal 2012 third quarter, are as follows:
  • Net sales increased $0.9 million, or 12%, to $8.6 million in the 2013 quarter due primarily to higher sales of diabetic products, which increased $0.7 million. Sales of Other Products increased $0.2 million in the 2013 Quarter.
  • Gross profit increased $1.0 million to $1.8 million, or 21.5% 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 $0.3 million, or 113%, to $0.6 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 $0.3 million, or 29%, to $0.8 million in the 2013 quarter due primarily to lower personnel costs and professional fees resulting from the restructure of our executive, finance, and IT teams.
  • Other expense, net increased to $0.7 million in the 2013 quarter from $18 thousand in the 2012 quarter due primarily to net realized and unrealized losses on investments in marketable securities.
  • Net loss from continuing operations was $0.3 million, or $(0.03) per basic and diluted share, in the 2013 quarter compared to a net loss of $0.6 million, or $(0.08) per basic and diluted share, in the 2012 quarter.
  • Net loss from discontinued operations was $19 thousand, or $(0.00) per basic and diluted share, in the 2013 quarter, compared to net loss of $2.7 million, or $(0.33) per basic and diluted share, in the 2012 quarter.

Forward generated operating income of $0.6 million in its fiscal 2013 nine-month period compared to an operating loss of $(1.7) million in the fiscal 2012 nine-month period due to increased gross profit and decreased general and administrative expenses. Other key financial results for Forward's fiscal 2013 nine-month period, compared to the fiscal 2012 nine-month results, are as follows:
  • Net sales increased $3.4 million, or 16%, to $23.4 million in the 2013 period due primarily to higher sales of diabetic products, which increased $3.5 million. Sales of Other Products decreased $0.1 million to $5.1 million in the 2013 period.
  • Gross profit increased $1.8 million to $4.9 million, or 20.8% 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 $0.7 million, or 75%, to $1.6 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 $1.2 million, or 31%, to $2.7 million in the 2013 period due primarily to lower personnel costs and professional fees resulting from the restructure of our executive, finance, and IT teams.
  • Other income (expense), changed to $0.4 million of expense in the 2013 period from $43 thousand of income in the 2012 period, due primarily to net realized and unrealized losses on investments in marketable securities.
  • Net income from continuing operations was $0.2 million, or $0.03 per basic and diluted share, in the 2013 period compared to a net loss of $1.6 million, or $(0.20) per basic and diluted share, in the 2012 period.
  • Net loss from discontinued operations was $0.2 million, or $(0.02) per basic and diluted share, in the 2013 period, compared to $4.7 million, or $(0.58) per basic and diluted share, in the 2012 period.

Robert Garrett, Jr., Forward's Chief Executive Officer, commented: "With our restructuring solidly behind us, we have taken important first steps towards protecting our existing OEM business, improving our gross margins, and laying the foundation to diversify and grow our customer base. The investments we have made in expanding, re-incentivizing, and resourcing our sales, design and sales support teams, combined with the growing capabilities of our Asia-based sourcing agent, serve the dual purpose of improving the productivity of our sales team, as well as expanding our ability to provide innovative solutions to new and existing customers. We believe these factors to be a driving force behind the recent growth in our existing accounts, as well as accelerated new account development we are seeing.

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