For its fourth quarter Infosonics posted earnings of 1 cents a share. Revenue rose 40% from the year ago quarter to $11.9 million from $8.5 million in the fourth quarter of 2012.
"We are pleased to report a second consecutive quarter of profitability," president and CEO Joseph Ram said in a statement. "Sales in the fourth quarter grew 40% over the same quarter last year, gross profit grew 48% and operating expenses declined by 26%. It was a record quarter for verykool® products in terms of both sales dollars and units shipped. "
The company saw verykool product unit shipments increase by 96% in 2013 when compared to 2012, with over 1.9 million units shipped in 2013. Infosonics is seeing increasing demand for smartphones, and is adjusting its product portfolio to fit that demand according to Ram.
Ram also said Infosonics plans to increase sales efforts in the U.S. in 2014.
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TheStreet Ratings team rates INFOSONICS CORP as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate INFOSONICS CORP (IFON) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity, poor profit margins and weak operating cash flow."