Market Snapshot
  • U.S.
  • Europe
  • Asia
Ticker Volume Price Price Delta
DJIA 16,376.46 113.90 0.70%
S&P 500 1,853.26 10.28 0.56%
NASDAQ 4,061.96 27.80 0.69%
Ticker Volume Price Price Delta
STOXX 50 3,139.26 47.74 1.54%
FTSE 100 6,584.17 42.56 0.65%
DAX 9,317.82 144.11 1.57%
Ticker Volume Price Price Delta
NIKKEI 14,417.68 420.87 3.01%
TOPIX 1,166.55 30.46 2.68%
HANG SENG 22,696.01 24.75 0.11%

InfoSonics Reports First Quarter 2013 Results



                InfoSonics Reports First Quarter 2013 Results

PR Newswire

SAN DIEGO, May 14, 2013

SAN DIEGO, May 14, 2013 /PRNewswire/ -- InfoSonics Corporation (NASDAQ: IFON),
the provider of verykool® wireless handset solutions, today announced results
for its first quarter ended March 31, 2013.

"Although we had encouraging data points this quarter including a record
number of verykool® handsets shipped, improved sequential gross margin and
decreased total operating expenses, more needs to be done in all areas to
bring our company to profitability," said Joseph Ram, president and CEO of
InfoSonics.  "The restructuring we did during the quarter helped decrease our
operating expenses compared to the fourth quarter of 2012 by 15% and we should
receive additional benefit from the restructure in the second quarter.  We are
also examining other opportunities to streamline our operations and further
reduce costs without inhibiting our ability to grow sales in key markets.  On
a sequential quarter basis, our net sales were seasonally down in the first
quarter compared to the preceding quarter.  However, we increased our gross
margin percentage from 16.0% to 17.7% and, despite lower net sales, reported
slightly higher gross profit.  We expect that the large R&D investment we made
last year will result in the introduction of new innovative products to our
portfolio, such as the RS75 we announced yesterday.  In the coming week, we
plan to introduce another new android‑based smartphone that will be our most
powerful to date."

InfoSonics reported net sales for the first quarter of 2013 of $7.8 million,
which represented a $4.5 million, or 37%, decline from $12.3 million for the
first quarter of 2012.  The primary reason for the decline was the absence of
low-margin Samsung distribution sales in the first quarter of 2013 compared to
$2.5 million in distribution sales in the first quarter of 2012.  We
transitioned away from this low-margin business in March 2012.  In addition,
during the first quarter of 2013, sales of private label products were
negligible, compared to $3.4 million of private label sales in the EMEA and
APAC regions in the first quarter of 2012. Partially offsetting these
declines, verykool® branded sales grew $1.4 million, or 22%, from $6.4 million
in the first quarter of 2012 to $7.8 million in the first quarter of 2013.

Gross profit margin as a percent of sales in the first quarter of 2013 was
17.7% compared to 18.3% in the 2012 first quarter.  The decline in gross
margin year over year resulted from the change in the mix of products shipped
and the impact of promotional pricing to spur sales of older products.  The
private label sales in the 2012 first quarter generated higher margins than
the pure branded sales in the 2013 first quarter, while the Samsung
distribution sales in the 2012 first quarter generated substantially lower
margins.  Gross profit in the first quarter of 2013 was $1.4 million, a 39%
decline from $2.3 million in the 2012 first quarter. 

Operating expenses in the first quarter of 2013 of $2.1 million rose 3%
compared to the 2012 first quarter.  This reflects a 10% increase in SG&A
expenses primarily attributable to increases in professional fees, marketing,
sales commissions and other personnel costs.  The increases were partially
offset by a 20% decrease in R&D expenses as a result of the restructuring of
our development team accomplished over the course of the 2013 first quarter.

The net loss for the first quarter of 2013 was $0.7 million, or $0.05 per
share, compared to net income of $105,000, or $0.01 per share, in the first
quarter of 2012.

At March 31, 2013, the Company had $15.7 million in working capital, including
$4.7 million in cash, and no outstanding indebtedness.  Cash and restricted
cash balances declined by $1.5 million compared to the December 31, 2012
balances primarily as a result of the growth in prepaid inventories and the
loss for the quarter.

About InfoSonics Corporation
InfoSonics is a provider of wireless handsets and related products to OEMs,
carriers and distributors in Latin America, Europe, Africa, Asia Pacific and
the United States.  The Company designs, develops, manufactures, markets,
sells and provides after-sales support for its own proprietary line of
products under the verykool® 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) the ability of our China R&D
group to develop new verykool^® handsets and successfully introduce them into
new emerging markets; (3) the ability of the Company to have access to
adequate capital to fund its operations; (4) extended general economic
downturn in world markets; (5) inability to secure adequate supply of
competitive products on a timely basis and on commercially reasonable terms;
(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;
(8) an interruption or failure of our information systems or subversion of
access or other system controls may result in a significant loss of business,
assets, or competitive information; (9) significant changes in supplier terms
and relationships or shortages in product supply; (10) loss of business from
one or more significant customers; (11) customer and geographical accounts
receivable concentration risk and other related risks; (12) rapid product
improvement and technological change resulting in inventory obsolescence;
(13) uncertain political and economic conditions internationally, including
terrorist or military actions; (14) the loss of a key executive officer or
other key employees and the integration of new employees; (15) changes in
consumer demand for multimedia wireless handset products and features;
(16) our failure to adequately adapt to industry changes and to manage
potential growth and/or contractions; (17) seasonal buying patterns; (18) the
resolution of any litigation for or against the Company; and (19) the ability
of the Company to generate taxable income in future periods.  Reference is
also made to other factors detailed from time to time in our periodic reports
filed with the Securities and Exchange Commission. These forward-looking
statements speak only as of the date of this release and we undertake no
obligation to publicly update any forward-looking statements to reflect new
information, events or circumstances after the date of this release.

 

 InfoSonics Corporation 
 Consolidated Statements of Operations 
 (Amounts in thousands, except per share data) 
 (Unaudited) 
                                                     Three months ended 
                                                     March 31, 
                                                    2013        2012
 Net sales                                          $   7,821   $   12,358
 Cost of sales                                      6,439       10,102
 Gross profit                                       1,382       2,256
 Operating expenses: 
        Selling, general and administrative         1,743       1,584
        Research and development                    398         500
                                                    2,141       2,084
 Operating income (loss)                            (759)       172
 Other income (expense): 
        Other income (expense)                      51          (65)
        Interest, net                               6           -
 Income (loss) before provision for income taxes    (702)       107
 Provision for income taxes                         (7)         (2)
Net income (loss)                                   $    (709)  $         105
 Net income (loss) per share (basic and diluted)    $   (0.05)  $        0.01
 Weighted-average number of common shares
outstanding 
        Basic                                       14,184      14,184
        Diluted                                     14,184      14,209

 

 InfoSonics Corporation 
 Consolidated Balance Sheets 
 (Amounts in thousands, except per share data) 
                                        March 31,             December 31, 
                                       2013                  2012
                                        (unaudited)           (audited) 
 ASSETS 
 Current assets: 
  Cash and cash equivalents            $              4,681  $                
                                                             5,230
  Restricted cash                      -                     1,003
  Trade accounts receivable, net of
 allowance for doubtful accounts of    9,981                 10,247
 $362 and $339, respectively
  Other accounts receivable            269                   95
  Inventory                            3,248                 3,429
  Prepaid assets                       2,340                 1,521
       Total current assets            20,519                21,525
 Property and equipment, net           309                   367
 Other assets                          204                   229
       Total assets                    $           21,032    $              
                                                             22,121
 LIABILITIES AND STOCKHOLDERS' EQUITY 
 Current liabilities: 
  Accounts payable                     $              1,138  $                
                                                             1,514
  Accrued expenses                     3,692                 3,786
       Total current liabilities       4,830                 5,300
 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, 14,184      14                    14
 shares issued and  outstanding as of
 March 31, 2013 and December 31, 2012
  Additional paid-in capital           32,339                32,282
  Accumulated other comprehensive      20                    (13)
 (gain) loss
  Accumulated deficit                  (16,171)              (15,462)
       Total stockholders' equity      16,202                16,821
       Total liabilities and           $           21,032    $              
 stockholders' equity                                        22,121

 

 InfoSonics Corporation 
 Consolidated Statements of Cash Flows 
 (Amounts in thousands) 
 (Unaudited) 
                                                   For the Three Months Ended 
                                                   March 31, 
                                                  2013           2012
 Cash flows from operating activities: 
  Net income (loss)                               $              $            
                                                  (709)            105
  Adjustments to reconcile net income (loss) to
 net cash provided by (used in) operating
 activities: 
       Depreciation                               56             64
       Loss on disposal of fixed assets           12             52
       Provision for bad debts                    23             -
       Provision for obsolete inventory           4              -
       Stock-based compensation expense           57             60
       (Increase) decrease in: 
             Trade accounts receivable            243            1,111
             Other accounts receivable            (174)          (498)
             Inventory                            177            136
             Prepaids                             (819)          1,080
             Other assets                         25             44
       Increase (decrease) in: 
             Accounts payable                     (376)          833
             Accrued expenses                     (94)           (90)
                     Net cash provided by (used   (1,575)        2,897
                    in) operating activities
 Cash flows from investing activities: 
  Purchase of property and equipment              (10)           (97)
  Increase (decrease) in restricted cash          1,003          (1)
       Net cash provided by (used in) investing   993            (98)
      activities
 Effect of exchange rate changes on cash          33             62
 Net increase (decrease) in cash and cash         (549)          2,861
equivalents
  Cash and cash equivalents, beginning of period  5,230          11,422
  Cash and cash equivalents, end of period        $              $        
                                                  4,681          14,283
  Cash paid for interest                          $              $            
                                                         -              -
  Cash paid for taxes                             -              -

 

 

 

SOURCE InfoSonics Corporation

Website: http://www.infosonics.com
Contact: Vernon A. LoForti, Chief Financial Officer,
vern.loforti@infosonics.com, +1-858-373-1675
Sponsored Links
Advertisement
Advertisements
Sponsored Links
Advertisement