Forward Reports Fiscal 2013 Results

WEST PALM BEACH, Fla., Jan. 14, 2014 (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 year ended September 30, 2013.

Forward generated operating income of $0.7 million in fiscal 2013 compared to an operating loss of $(3.3) million in fiscal 2012 primarily due to increased gross profit and decreased general and administrative expenses. Other key financial results for fiscal 2013, compared to fiscal 2012 results, are as follows:

Fiscal 2013 Financial Results – Compared to the fiscal 2012 results:
  • Net sales increased $1.5 million, or 5%, to $30.9 million in fiscal 2013 due primarily to higher sales of diabetic products, which increased $2.6 million. Sales of Other Products decreased $1.0 million to $6.7 million in fiscal 2013.
  • Gross profit increased $2.5 million to $6.4 million, or 21% of net sales, in fiscal 2013 due primarily to the higher sales level achieved and cost savings realized from the restructuring of our Asia-based sourcing and quality assurance operations and improvements to our quality control systems.
  • Sales and marketing expenses increased $0.6 million, or 37%, to $2.2 million in fiscal 2013 due primarily to higher personnel costs resulting from the restructuring and expansion of our sales and sales support teams.
  • General and administrative expenses decreased $2.1 million, or 37%, to $3.5 million in fiscal 2013 due primarily to lower personnel costs and professional fees resulting from the restructuring of our executive, finance, and IT teams.
  • Other expense, net, increased to $0.7 million of expense in fiscal 2013 from $34 thousand of expense in fiscal 2012, due primarily to net realized and unrealized losses on investments in marketable securities.
  • Net income (loss) from continuing operations was $5 thousand of income, or ($0.07) per basic and diluted share, in fiscal 2013 compared to ($3.3) million, or $(0.41) per basic and diluted share, in fiscal 2012.
  • Net loss from discontinued operations was ($0.2) million, or $(0.02) per basic and diluted share, fiscal 2013, compared to ($6.3) million, or $(0.78) per basic and diluted share, in fiscal 2012.

Robert Garrett, Jr., Forward's Chief Executive Officer, commented: "With our restructuring behind us, we have turned our focus to developing long term sales and gross profit growth strategies. We believe the recent investments we have made in strengthening our design and sales support teams have improved the productivity of our sales force and expanded our ability to provide innovative and differentiated solutions to our existing and prospective customers. As an example, the diabetic products sector seems to be undergoing significant changes that, we believe, present us with meaningful opportunities if managed proactively.

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