Franklin Wireless Announces Third Quarter Fiscal 2011 Financial Results
Date : 05/13/2011 @ 4:10PM
Source : MarketWire
Stock : Franklin Wireless Corporation (FKWL)
Quote : 2.9 -0.09 (-3.01%) @ 4:30PM
Franklin Wireless Announces Third Quarter Fiscal 2011 Financial Results
Franklin Wireless (OTCBB:FKWL)
Intraday Stock Chart
Today : Friday 13 May 2011
Franklin Wireless Corp. (OTCBB: FKWL), the market leader in dual-mode WiMAX and CDMA modems for 3G and 4G wireless broadband data communications, today announced financial results for the third quarter of fiscal year 2011 ended March 31, 2011.
The Company reported net sales of $9.4 million for the quarter, compared with $31.6 million in net sales for the corresponding period of 2010. Gross margin improved to 29.7% from 13.5%, and despite the decrease in revenue, net income rose to $1.5 million for the three month period ending March 31, 2011, compared with $1.3 million for the same period in 2010, which represents a 13% increase year-over-year. The improved gross margin and net income were driven primarily by an increase in the proportion of FTI supplied products (vs. third party suppliers), which consisted of the Company's U600 and U210 USB modems. On a fiscal year-to-date basis, net income more than doubled to $4.7 million from $2.3 million for the same period last fiscal year.
"During this past quarter, our Company continued to deliver solid bottom line financial results," said OC Kim, president of Franklin Wireless. "In spite of lower revenues for the quarter, we were able to grow net income by 13% year-over-year, which is a significant achievement for our team."
The Company noted that the results reflected the payment received from C-Motech for amounts owed to the Company of approximately $1.9 million, of which approximately $1.6 million was booked to other income.
Diluted earnings per share improved to $0.13 for the quarter compared to $0.10 for same period last year. The earnings per share increase was due to higher net income as well as the lower share count resulting from the recent repurchase of approximately 1.8 million shares from C-Motech as well as the previously announced cancellation of 250,000 shares that took place during the three month period ending March 31, 2011.
