Forward Reports Fiscal 2013 First Quarter Results

Forward Reports Fiscal 2013 First Quarter Results

WEST PALM BEACH, Fla., Feb. 14, 2013 (GLOBE NEWSWIRE) -- Forward Industries,
Inc. (Nasdaq:FORD), a designer and distributor of custom carry and protective
solutions, today announced financial results for its first fiscal quarter
ended December 31, 2012.

Fiscal 2013 First Quarter Financial Results – Compared to the 2013 quarter
first quarter results:

  *Net sales increased $0.8 million, or 13%, to $7.0 million in the 2013
    quarter due primarily to higher sales of diabetic products, which
    increased $1.2 million. Sales of Other Products decreased $0.3 million, or
    13%, to $1.8 million.
  *Gross profit increased $0.3 million to $1.5 million, or 22% 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 65%, to $0.5
    million in the 2013 quarter due primarily to higher personnel costs
    resulting from the restructure of our sales and sales support teams.
  *General and administrative expenses decreased $0.3 million, or 25%, to
    $1.1 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 $0.2 million in the 2013 quarter from $28
    thousand in the 2012 quarter due primarily to net realized and unrealized
    gains on investments in marketable securities.
  *Net income from continuing operations was $0.2 million, or $0.02 per basic
    and diluted share, in the 2013 quarter compared to a net loss of $0.5
    million, or $(0.06) per basic and diluted share, in the 2012 quarter.
  *Net loss from discontinued operations was $42 thousand, or $(0.01) per
    basic and diluted share, in the 2013 quarter, compared to $1.0 million, or
    $(0.13) per basic and diluted share, in the 2012 quarter.

Robert Garrett, Jr., Forward's Chief Executive Officer, commented: "Our
financial results for the first quarter of Fiscal 2013 reflect the progress we
have made towards our goal of improving our operating performance and
returning our company to sustainable profitability. Since initiating our
restructuring plan in June 2012 we have significantly lowered our total
operating expenses through headcount reductions, office closures, relocation
of our corporate headquarters, and other cost rationalization initiatives,
even after reinvesting a portion of the cost savings to expand and restructure
our sales and sales support teams. Although we continue to confront some
legacy costs associated with the closure of our retail division and relocation
to West Palm Beach, we believe the operational restructuring we embarked upon
is largely complete.

"Additionally, we continue to see the underlying strength of our OEM business,
as evidenced by the 13% growth in our top line and the 1.8% improvement in our
gross margin in the 2013 quarter. The higher gross margin primarily reflects
the cost savings achieved through the restructuring of our Asia-based sourcing
and quality assurance operations, which more than offset a decline in the
gross margin of our Diabetic products business. While we anticipate continued
challenges related to the volatility of our product mix and the impact on our
gross margins, we are pleased that our Asia-based sourcing agent has made
meaningful progress in improving the quality of our products and diversifying
our supplier base. We believe these to be two of the critical components to
achieving our goal of restoring our gross margins to levels seen as recently
as fiscal 2010, insofar as they better position us to negotiate reduced
material costs with our suppliers and manage pricing, quality, and service
challenges we face with our customers."

The tables below are derived from the Company's audited, consolidated
financial statements included in its Annual Report on Form 10-K filed today
with the Securities and Exchange Commission. Please refer to the Form 10-K for
complete financial statements and further information regarding the Company's
results of operations and financial condition relating to the fiscal years
ended September 30, 2012 and 2011. Please also refer to the Form 10-K for a
discussion of risk factors applicable to the Company and its business.

Note Regarding Forward-Looking Statements

In addition to the historical information contained herein, this press release
contains certain "forward-looking statements" within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, that reflect Forward's current
expectations and projections about its future results, performance, prospects
and opportunities. Forward has tried to identify these forward-looking
statements by using words such as "may", "should," "expect," "hope,"
"anticipate," "believe," "intend," "plan," "estimate" and similar expressions.
These forward-looking statements are based on information currently available
to the Company and are subject to a number of risks, uncertainties and other
factors that could cause its actual results, performance, prospects or
opportunities in the 2013 quarter and beyond to differ materially from those
expressed in, or implied by, these forward-looking statements. No assurance
can be given that the actual results will be consistent with the
forward-looking statements.Investors should read carefully the factors
described in the "Risk Factors" section of the Company's filings with the SEC,
including the Company's Form 10-K for the year ended September 30, 2012 for
information regarding risk factors that could affect the Company's
results.Except as otherwise required by Federal securities laws, Forward
undertakes no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events, changed
circumstances or any other reason.

About Forward Industries

Incorporated in 1962, and headquartered West Palm Beach, Florida, Forward
Industries is a global designer and distributor of mobile device cases and
accessories. Forward's products can be viewed online at
www.forwardindustries.com.

The Forward Industries, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=12838

FORWARD INDUSTRIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
(UNAUDITED)
                                             
                                             Three Months Ended December 31,
                                             2012            2011
Net sales                                     $6,973,370      $6,162,300
Cost of goods sold                            5,473,783       4,950,975
Gross profit                                  1,499,587       1,211,325
                                                            
Operating expenses:                                          
Sales and marketing                          477,381         289,848
General and administrative                   1,074,038       1,422,912
Total operating expenses                      1,551,419       1,712,760
                                                            
Loss from operations                          (51,832)        (501,435)
                                                            
Other income (expense):                                      
Interest income                              1,820           42,127
Other income (expense), net                  231,272         (13,767)
Total other income, net                       233,092         28,360
                                                            
Income (loss) from continuing operations      181,260         (473,075)
before income tax expense (benefit)
Income tax expense (benefit)                 75              (219)
Income (loss) from continuing operations     181,185         (472,856)
Loss from discontinued operations, net of tax (42,420)        (1,040,324)
of $920 and $1,859, respectively
Net income (loss)                            $138,765        $(1,513,180)
Other comprehensive income (loss)                            
Change in unrealized gains on marketable      23,744          --
securities
Translation adjustments                      5,615           916
Comprehensive income (loss)                  $168,124        $(1,512,264)
                                                            
Net income (loss) per basic and diluted                      
common share:
Income (loss) from continuing operations      $0.02           $(0.06)
Loss from discontinued operations            $(0.01)         $(0.13)
Net income (loss) per share                  $0.02           $(0.19)
                                                            
Weighted average number of common and common                 
equivalent shares outstanding
Basic and diluted                            8,106,897       8,091,165


FORWARD INDUSTRIES, INC.
CONSOLIDATED BALANCE SHEETS
                                                               
                                                               
                                                   December 31, September 30,
                                                    2012         2012
Assets:                                             (Unaudited)  (Note 1)
Current assets:                                                 
Cash and cash equivalents                          $3,696,500   $4,608,246
Marketable securities                              1,311,558    420,605
Accounts receivable, net                           4,622,030    7,533,491
Inventories, net                                   3,434,168    3,380,813
Prepaid expenses and other current assets          274,927      367,552
Current assets of discontinued operations          571,175      621,879
Total current assets                                13,910,358   16,932,586
                                                               
Property and equipment, net                        129,843      138,774
Other assets                                       40,442       40,442
Total Assets                                        $14,080,643  $17,111,802
                                                               
Liabilities and shareholders' equity                            
Current liabilities:                                            
Accounts payable                                   $3,460,007   $5,936,848
Accrued expenses and other current liabilities     1,091,829    1,725,185
Current liabilities of discontinued operations     69,422       261,806
Total liabilities                                   4,621,258    7,923,839
                                                               
Commitments and contingencies                                   
                                                               
Shareholders' equity:                                           
Preferred stock, par value $0.01 per share;
4,000,000 shares authorized; no shares issued and   --           --
outstanding
Common stock, par value $0.01 per share; 40,000,000
shares authorized, 8,819,095 and 8,811,595 shares   88,191       88,116
issued; and 8,112,685 and 8,105,185 shares
outstanding, respectively
Capital in excess of par value                     17,123,994   17,020,771
Treasury stock, 706,410 shares at cost             (1,260,057)  (1,260,057)
Accumulated deficit                                (6,486,161)  (6,624,926)
Accumulated other comprehensive loss               (6,582)      (35,941)
Total shareholders' equity                          9,459,385    9,187,963
Total liabilities and shareholders' equity          $14,080,643  $17,111,802

CONTACT: Forward Industries, Inc.
         James McKenna, CFO
         (561) 465-0070

Forward Industries, Inc.
 
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