Huge earnings beat today. Trust me, no one is talking about IFON’s “iPhone”, dubbed “Very Kool”, sold as a premium electronic device to the innocent people of South America. They’ve carved out a nice niche. Look at these numbers.
SAN DIEGO, March 6, 2014 /PRNewswire/ – InfoSonics Corporation (IFON), the provider of verykool®wireless handset solutions and tablets, today announced results for its fourth quarter ended December 31, 2013.
“We are pleased to report a second consecutive quarter of profitability,” said Joseph Ram, president and CEO of InfoSonics. “Sales in the fourth quarter grew 40% over the same quarter last year, gross profit grew 48% and operating expenses declined by 26%. It was a record quarter for verykool® products in terms of both sales dollars and units shipped. Unit shipments during the quarter rose 96% compared to the prior year and resulted in another record year with over 1.9 million units shipped during 2013. We are beginning to see a higher overall demand for smartphones, and are adjusting our portfolio of products accordingly. In 2014, we also plan to increase our sales efforts in the United States.”
InfoSonics reported net sales for the 2013 fourth quarter of $11.9 million, which represented a $3.4 million, or 40%, increase from $8.5 million for the fourth quarter of 2012. The Company reported growth in a number of geographical areas including Mexico, Puerto Rico and Peru, as well as increased sales to private label customers in EMEA and APAC. Unit shipments during the quarter nearly doubled compared to the prior year, and the average selling price declined by 28% as carrier customers in Latin America purchased more low-end feature phones. Net sales for the year ended December 31, 2013 amounted to $37.9 million, which represented a $3.6 million, or 11%, increase from $34.3 million for the 2012 year. Excluding the $2.7 million of distribution sales in the first quarter of 2012, the quarter in which the Company ceased its third-party distribution business, sales of verykool® products during 2013 grew by $6.3 million, or 20%, compared to 2012.
Gross profit in the fourth quarter of 2013 was $2.0 million, a 48% increase over $1.4 million in the 2012 fourth quarter. The gross profit margin as a percent of sales in the fourth quarter of 2013 rose to 16.9% compared to 16.0% in the 2012 fourth quarter. Gross profit for the year ended December 31, 2013 amounted to $6.9 million, a $136,000, or 2%, increase from $6.8 million for the 2012 year. The gross profit margin as a percent of sales for 2013 declined to 18.3% from 19.9% in the prior year, reflecting an increase in the sale of low-end feature phones at lower margins during the year.
Operating expenses in the fourth quarter of 2013 were $1.9 million, a decrease of $654,000, or 26%, compared to $2.5 million in the 2012 fourth quarter. This reflects a $176,000, or 10%, decrease in SG&A expenses and a $478,000, or 69%, decrease in R&D expenses. Operating expenses for the year ended December 31, 2013 amounted to $8.1 million, a $1.2 million, or 13%, decrease from $9.3 million for the 2012 year, reflecting decreased bad debt and other expenses, partially offset by increased legal fees, and substantially reduced R&D expenses incident to the Company’s restructurings during 2013 of its China-based development team.
Net income for the fourth quarter of 2013 was $125,000, or $0.01 per share, compared to a net loss of $1.2 million, or $0.08 per share, in the fourth quarter of 2012. The net loss for the year ended December 31, 2013 was $597,000, or $0.04 per share, compared to a loss for the year ended December 31, 2012 of $2.5 million, or $0.18 per share.
At December 31, 2013, the Company had $2.4 million in cash, $15.9 million of net working capital and no outstanding indebtedness. Cash and restricted cash balances declined by $3.9 million compared to the December 31, 2012 balances primarily as a result of the growth in receivables and prepaid inventories.
This stock is going much, much higher, to at least $10.