Forward Industries Reports Fiscal Year 2006 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. -- The date on Condensed con·densev. 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 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. table should read September 30, 2006 (sted September 30, 2005) The corrected release reads: FORWARD INDUSTRIES REPORTS FISCAL YEAR 2006 RESULTS Forward Industries, Inc. (Nasdaq:FORD), a designer and distributor of custom carrying case solutions, today announced results for its fiscal year ended September 30, 2006. For fiscal year 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 $30.6 million compared to $51.9 million in fiscal year 2005. Net income was $1.5 million, or $0.19 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, in 2006, compared to $9.4 million, or $1.26 per fully diluted share, in 2005. The Company attributed virtually the entire sales decline to cell phone product sales that fell by $21.0 million to $15.6 million in fiscal 2006, from $36.6 million in fiscal 2005. The Company cited a $19.3 million decline in sales of its products included in-box with Motorola's V3 Razr phone as the primary reason for the lower cell phone product sales. This decline resulted from significantly lower unit sales unit sales Sales measured in terms of physical units rather than dollars. Unit sales data are often used by financial analysts when evaluating the health of a company. and lower selling prices. In fiscal 2005, V3 products alone accounted for approximately 47% of the Company's net sales. Two other in-box cell phone programs that helped drive Forward's fiscal 2005 results to record levels substantially terminated during the year and contributed to the sales decline, albeit to a much lesser extent. These declines were partially offset by higher sales to Motorola for another in-box program and increased licensed cell phone products to wholesalers and retailers under the Company's license agreement with Motorola. 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 also declined slightly to $11.4 million in 2006, from $11.8 million in 2005. Sales of other products were essentially flat at $3.6 million in 2006, compared to $3.5 million in 2005. Gross profit was $7.8 million in 2006, versus $18.6 million in 2005, as a result of the lower sales level, reduced margins on those sales, shifts in product mix to lower margin items, and higher freight costs. 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 fiscal year 2006 were $6.1 million, compared to $6.2 million in 2005. The Company reported income from operations in 2006 of approximately $1.7 million, compared to $12.3 million in 2005. Forward earned interest income of approximately $780,000 in 2006, versus approximately $131,000 in 2005, due predominately to higher average cash balances and interest rates. Jerome E. Ball, Chairman and Chief Executive Officer of Forward, commented, "Our fiscal 2006 sales and pre-tax earnings are disappointing when compared to fiscal 2005, which was an extraordinary year for the Company due to very high sales volumes under three cell phone 'in-box' programs." Mr. Ball continued, "Our financial position gained further strength during the year. In fiscal 2006, the Company generated $2.7 million of cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses , and we closed the year with $18.6 million in cash, 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. and working capital of $24.7 million. We believe our balance sheet provides a strong foundation for the Company's continued development and we look forward to updating you on our progress throughout the year." The tables below set forth the Company's condensed consolidated statements of income for the fiscal years ended September 30, 2006 and 2005, and consolidated balance sheet as of September 30, 2006, and are derived from the Company's audited, 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-KSB filed November 20, 2006 with the Securities and Exchange Commission. Please refer to the Form 10-KSB for further information regarding the Company's results of operations, the Company's financial condition and complete financial statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the fiscal year ended September 30, 2006. 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. Forward's products can be viewed online at www.fwdinnovations.com and www.forwardindustries.com. Statements in this press release other than statements of historical fact are "forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. ." Such statements are subject to certain risks and uncertainties, identified from time to time in the Company's filings with the Securities and Exchange Commission that could cause actual results to differ materially from those reflected in any forward-looking statements. These forward-looking statements represent the Company's judgment as of the date of the release. The Company disclaims, however, any obligation to update these forward-looking statements. [TABLE OMITTED] [TABLE OMITTED] |
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