$IFON - MONSTER NEWS!!! NASDAQ PRESS RELEASE
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PRESS RELEASE
May 13, 2014, 9:06 a.m. ET
InfoSonics Reports First Quarter 2014 Results
SAN DIEGO, May 13, 2014 /PRNewswire/ -- InfoSonics Corporation (NASDAQ: IFON), the provider of verykool(R) wireless handset solutions and tablets, today announced results for its first quarter ended March 31, 2014.
"We are pleased to report a third consecutive quarter of profitability," said Joseph Ram, president and CEO of InfoSonics. "Sales in the first quarter grew 49% over the same quarter last year, gross profit grew 50% and operating expenses declined by 6%. Unit shipments during the quarter rose 51% compared to the prior year. Most importantly, we reported a large swing in profitability by turning a $709,000 loss in the first quarter of 2013 into a $55,000 profit in the first quarter of 2014. Also significant, in late March we secured a $2 million bank line of credit that will provide future liquidity, together with the arrangement of $4 million of credit insurance that will enable our manufacturing vendors to extend credit to us that was not previously available."
InfoSonics reported net sales for the 2014 first quarter of $11.6 million, which represented a $3.8 million, or 49%, increase from $7.8 million for the first quarter of 2013. The Company reported sales growth in a number of geographical areas, primarily in South America and increased private label sales to customers in Europe. These increases were partially offset by a decline in sales to customers in Central America.
Gross profit in the first quarter of 2014 was $2.1 million, a 50% increase over $1.4 million in the 2013 first quarter. The gross profit margin as a percent of sales in the first quarter of 2014 rose to 17.8% compared to 17.7% in the 2013 first quarter.
Operating expenses in the first quarter of 2014 were $2.0 million, a decrease of $129,000, or 6%, compared to $2.1 million in the 2013 first quarter. This reflects a $42,000, or 2%, increase in SG&A expenses and a $171,000, or 43%, decrease in R&D expenses. These changes reflect increased legal fees during the quarter and substantially reduced R&D expenses incident to the Company's restructurings during 2013 of its China-based development team.
Net income for the first quarter of 2014 was $55,000, a significant improvement over the net loss of $709,000 in the first quarter of 2013.
At March 31, 2014, the Company had $1.1 million in cash, $16.3 million of net working capital and no outstanding indebtedness.
About InfoSonics Corporation
InfoSonics is a San Diego-based designer, manufacturer and provider of wireless handsets and related products to OEMs, carriers, distributors and consumers in the United States, Latin America, Europe, Africa and Asia Pacific. The company is committed to delivering quality products with innovative industrial designs that appeal to consumers and offer exceptional value. InfoSonics sells and supports its own line of products under the verykool(R) and other private label brands. Additional information can be found on our corporate website at www.infosonics.com and www.verykool.net.
Except for the factual statements made herein, the information contained in this news release consists of forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that involve risks, uncertainties and assumptions that are difficult to predict. Words and expressions reflecting optimism, satisfaction or disappointment with current prospects, as well as words such as "believes," "hopes," "intends," "estimates," "expects," "projects," "plans," "anticipates" and variations thereof, or the use of future tense, identify forward-looking statements, but their absence does not mean that a statement is not forward-looking. Such forward-looking statements are not guarantees of performance and our actual results could differ materially from those contained in such statements. Factors that could cause or contribute to such differences include, without limitation: (1) intense competition internationally, including competition from alternative business models, such as manufacturer-to-carrier sales, which may lead to reduced prices, lower sales, lower gross margins, extended payment terms with customers, increased capital investment and interest costs, bad debt risks and product supply shortages; (2) our ability to develop new verykool(R) handsets and successfully introduce them into new emerging markets; (3) extended general economic downturn in world markets; (4) inability to secure adequate supply of competitive products on a timely basis and on commercially reasonable terms; (5) the ability of the Company to maintain and improve its gross margins despite intense competition; (6) foreign exchange rate fluctuations, devaluation of a foreign currency, adverse governmental controls or actions, political or economic instability, or disruption of a foreign market, including, without limitation, the imposition, creation, increase or modification of tariffs, taxes, duties, levies and other charges and other related risks of our international operations which could significantly increase selling prices of our products to our customers and end-users; (7) the ability to attract new sources of profitable business from expansion of products or services or risks associated with entry into new markets, including geographies, products and services; (
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InfoSonics Corporation
Consolidated Statements of Operations
(Amounts in thousands, except per share data)
(Unaudited)
Three months ended
March 31,
2014 2013
Net sales $ 11,624 $ 7,821
Cost of sales 9,551 6,439
Gross profit 2,073 1,382
Operating expenses:
Selling, general and administrative 1,785 1,743
Research and development 227 398
2,012 2,141
Operating income (loss) 61 (759)
Other income (expense):
Other income (expense), net (3) 51
Interest - 6
Income (loss) before provision for income
taxes 58 (702)
Provision for income taxes (3) (7)
Net income (loss) $ 55 $ (709)
============ =============
Net income (loss) per share:
Basic $ 0.00 $ (0.05)
Diluted $ 0.00 $ (0.05)
Weighted-average number of common shares
outstanding:
Basic 14,218 14,184
Diluted 14,810 14,184
InfoSonics Corporation
Consolidated Balance Sheets
(Amounts in thousands, except per share data)
March 31, December 31,
2014 2013
(unaudited) (audited)
ASSETS
Current assets:
Cash and cash equivalents $ 1,145 $ 2,369
Trade accounts receivable, net of
allowance for doubtful accounts of $373
and $373, respectively 13,555 11,856
Other accounts receivable 83 163
Inventory 2,991 2,467
Prepaid assets 3,130 3,435
Total current assets 20,904 20,290
Property and equipment, net 165 200
Other assets 41 179
Total assets $ 21,110 $ 20,669
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 1,526 $ 1,161
Accrued expenses 3,058 3,180
Total current liabilities 4,584 4,341
Stockholders' equity:
Preferred stock, $0.001 par value, 10,000
shares authorized (no shares issued and
outstanding) - -
Common stock, $0.001 par value, 40,000
shares authorized, 14,356 and 14,184
shares issued and outstanding as of
March 31, 2014 and December 31, 2013,
respectively 14 14
Additional paid-in capital 32,547 32,391
Accumulated other comprehensive loss (31) (18)
Accumulated deficit (16,004) (16,059)
Total stockholders' equity 16,526 16,328
Total liabilities and stockholders'
equity $ 21,110 $ 20,669
============= =============
InfoSonics Corporation
Consolidated Statements of Cash Flows
(Amounts in thousands)
(Unaudited)
Three Months Ended
December 31,
2014 2013
Cash flows from operating
activities:
Net income (loss) $ 55 $ (709)
Adjustments to reconcile net
income (loss) to net cash used in
operating activities:
Depreciation 48 56
Loss on disposal of fixed assets 1 12
Provision for bad debts - 23
Provision for obsolete inventory 43 4
Stock-based compensation expense 21 57
(Increase) decrease in:
Trade accounts receivable (1,699) 243
Other accounts receivable 80 (174)
Inventory (567) 177
Prepaids 305 (819)
Other assets 138 25
(Increase) decrease in:
Accounts payable 365 (376)
Accrued expenses (122) (94)
Net cash used in operating
activities (1,332) (1,575)
Cash flows from investing
activities:
Purchase of property and
equipment (14) (10)
Decrease in restricted cash - 1,003
Net cash provided by (used in)
investing activities (14) 993
Cash flows from financing
activities:
Cash received from exercise of
stock options 135 -
Net cash provided by financing
activities 135 -
Effect of exchange rate changes on
cash (13) 33
Net decrease in cash and cash
equivalents (1,224) (549)
Cash and cash equivalents,
beginning of period 2,369 5,230
Cash and cash equivalents, end of
period $ 1,145 $ 4,681
============== ===============
Cash paid for interest $ - $ -
Cash paid for taxes - -
SOURCE InfoSonics Corporation
/CONTACT: Vernon A. LoForti, Chief Financial Officer, vern.loforti@infosonics.com, 858-373-1675
/Web site: http://www.infosonics.com
http://online.wsj.com/article/PR-CO-20140513-908914.html
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