Forward Industries Reports Fiscal First Quarter Results.POMPANO BEACH Pompano Beach (pŏm`pənō), city (1990 pop. 72,411), Broward co., SE Fla., on the Atlantic coast and the Intracoastal Waterway; inc. 1908. It is a resort city with ocean beaches, excellent fishing, and a harness-racing track. , Fla. -- Forward Industries, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :FORD), a designer and distributor of custom carrying case solutions for personal electronics, today announced results for its fiscal first quarter ended December 31, 2006. For the three months ended December 31, 2006, net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight were $7.4 million compared to $8.7 million for the three months ended December 31, 2005. Cell phone product sales were $4.2 million in the first quarter of fiscal 2007, compared to $5.7 million in the fiscal 2006 quarter, due to price reductions, shifts in product mix to lower-priced items and a decline in demand. Sales of blood glucose monitoring blood glucose monitoring Sugar monitoring Lab medicine The periodic testing of serum glucose in Pts known to have DM. See Bedside glucose monitoring, Beta cell implants, Diabetes, Glucometer, Glycosylated hemoglobin, Non-Invasive glucose monitoring. kit cases increased to $2.5 million in the first quarter of fiscal 2007 from $2.1 million in the first quarter of fiscal 2006, while sales of other products were $0.73 million in the current period, compared to $0.88 million in the fiscal 2006 quarter. Gross profit was $2.0 million in the first quarter of fiscal 2007, versus $2.6 million in the fiscal 2006 quarter, due to the lower sales level and reduced margins on those sales, resulting from increased product costs, freight costs, and other costs of goods sold. The Company was successful, in certain cases, in reducing its costs of materials and supply to mitigate the price reductions, but this did not carry across all product sales. Total operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the three months ended December 31, 2006 were $1.7 million compared to $1.5 million in the three months ended December 31, 2005, due to $0.25 million of increased legal and other professional fees incurred in the course of defending the purported class action litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. previously disclosed, and to a lesser extent, higher royalty, travel and entertainment, and other general and administrative expenses. Forward earned interest income of approximately $0.24 million in the first quarter of fiscal 2007, versus approximately $0.15 million in the fiscal 2006 quarter. The Company reported net income in the first quarter of fiscal 2007 of approximately $0.37 million, or $0.05 per fully diluted share, compared to $0.77 million or $0.10 per fully diluted share in the fiscal 2006 quarter. Mr. Ball commented, "We continue to be challenged by pricing pressure and shifts in product mix to lower priced items in our OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and cell phone case market, which exert downward pressure on our sales and gross profit. Nonetheless, the Company's financial position continues to be strong, with $21.2 million in cash, $25.1 million of working capital and no long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. at December 31, 2006." The tables below set forth the Company's unaudited, condensed con·dense v. con·densed, con·dens·ing, con·dens·es v.tr. 1. To reduce the volume or compass of. 2. To make more concise; abridge or shorten. 3. Physics a. consolidated statements of income for the three-month periods ended December 31, 2006 and 2005, respectively, the unaudited, condensed consolidated balance sheet consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. as of December 31, 2006, and the audited, consolidated balance sheet as of September 30, 2006, and are derived from the Company's unaudited, condensed consolidated financial statements Consolidated Financial Statements The combined financial statements of a parent company and its subsidiaries. Notes: Because consolidated financial statements present an aggregated look at the financial position of a parent and its subsidiaries, they enable you to gauge included in its Form 10-Q Form 10-Q See 10-Q. filed today with the Securities and Exchange Commission. Please refer to the Form 10-Q for complete financial statements and further information regarding the Company's results of operations and financial condition relating to the three-month period ended December 31, 2006, as well as the Company's Form 10-KSB for the fiscal year ended September 30, 2006, for additional information. About Forward Industries Forward Industries, Inc. designs and distributes custom carrying case solutions primarily for cellular phones and home medical diagnostic equipment. The Company sells its products directly to original equipment manufacturers and also markets a line of Carry Solutions under the "Motorola" brand name. For more information, please visit www.forwardindustries.com. Note Regarding Forward-Looking Statements In addition to the historical information contained herein, this news release contains forward-looking statements that are subject to risks and uncertainties. Actual results may differ substantially from those referred to herein due to a number of factors, including but not limited to those discussed in Item 6 in "Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial of Financial Condition and Results of Operations" and in "Risk Factors" in our Annual Report on Form 10-KSB and as updated in our Quarterly Reports on Form 10-Q. Such factors include, among others, the degree of our success in winning new business from our customers and against competing vendors; the high degree of our customer concentration and, therefore, the dependence of our revenues and results of operations on order flow from these OEM customers; the resulting susceptibility of our revenues and results of operation to significant change over short periods of time; changes affecting, or the loss of, one or more of our principal OEM customers; and the effective management of inventory including in connection with our OEM customers' hub arrangements to which we are subject. [TABLE OMITTED] [TABLE OMITTED] |
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