IFON Q3 result: Profitability on 84% Increase in Sales
InfoSonics Reports Third Quarter 2013 Results
Profitability on 84% Increase in Sales
SAN DIEGO, November 6, 2013 – InfoSonics Corporation (NASDAQ: IFON), the provider of verykool® wireless handset solutions, today announced results for its third quarter ended September 30, 2013.
“We are pleased to report a profitable quarter driven by an 84% increase in sales of our verykool® products over the same period last year, as well as our fourth consecutive quarter of record unit shipments,” said Joseph Ram, president and CEO of InfoSonics. “We shipped 477,000 handsets this quarter, a 166% increase compared to unit shipments in the particularly soft third quarter last year. Sales to customers in South America more than doubled, and sales in Central America increased by 59%. Our efforts to realign our cost structure reduced total operating expenses by 23% compared to the prior year period and produced a profitable quarter. We continued to refresh our product portfolio by expanding our Xtreme line of ruggedized handsets with the verykool®RS90 “Vortex” smartphone and introduced the verykool®s470 “Black Pearl,” a powerful smartphone with a quad-core processor, Android 4.2 and a 4.7” HD screen.”
InfoSonics reported net sales for the third quarter of 2013 of $9.9 million, which represented a $4.5 million, or 84%, increase from $5.4 million for the third quarter of 2012. As noted above, net sales to carrier customers in South America doubled and sales to customers in Central America grew 59%. Sales were also strong to U.S. based distributors selling to customers in Latin America and Mexico.
Gross profit for the third quarter of 2013 was $1.8 million, a 60% increase from $1.1 million in the 2012 third quarter, reflecting the significantly higher level of net sales. Gross margin as a percent of net sales in the 2013 third quarter was 18.5% compared to 21.2% in the 2012 third quarter. The lower gross margin this year reflects the sale of slow moving inventory at reduced prices