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Forward Industries Inc. (FORD) filed Quarterly Report for the period ended 2011-12-31.
Forward Industries Inc. has a market cap of $16.6 million; its shares were traded at around $2.13 with and P/S ratio of 0.7.
This is the annual revenues and earnings per share of FORD over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of FORD.
Highlight of Business Operations:
We recorded a net loss of $1.5 million in the 2012 Quarter, compared to net income of $17 thousand in the 2011 Quarter. The $1.5 million change from net income to a net loss in the 2012 Quarter resulted primarily from higher sales and marketing expenses, as well as higher general and administrative expenses, which were offset, in small part, by increased gross profit on higher sales, and “other income” (primarily interest income) in Fiscal 2011, as reflected in the table below:Sales of carrying cases for blood glucose monitoring kits represented 59% of our total net sales in the 2012 Quarter compared to 71% of our total net sales in the 2011 Quarter.
Sales of “Other” products represented 31% of our net sales in the 2012 Quarter compared to 23% of net sales in the 2011 Quarter.
Sales and marketing expenses increased $0.9 million to $1.3 million in the 2012 Quarter compared to $0.4 million in the 2011 Quarter. The significantly higher level of expense reflects our focus on growing sales generally, developing our capability to sell into the retail and corporate channels, expanding our product range, and the ramp-up of necessary resources applied to achieve these goals, and is primarily due to the following:
During the 2012 Quarter, we used $4.0 million of cash in operations, which consisted of a net loss of $1.5 million, adjusted by $0.2 million for non-cash items (primarily share based compensation), and a net use in working capital items of $2.7 million. As to working capital items, cash used in operating activities consisted of increases in accounts receivable, inventories, and prepaid and other current assets of $2.4 million, $1.1 million, and $1.0 million, respectively. These changes were offset, in part, by increases in accounts payable and accrued expenses and other current liabilities of $1.1 million and $0.6 million, respectively, which had the effect of generating cash from operating activities. The increase in accounts receivable is primarily due to the timing of cash receipts from our largest customer and the higher sales (driven by our Forward-branded product business) recorded in the 2012 Quarter compared to the three months ended September 30, 2011. The increases in inventories and accounts payable are due to higher materials purchases made in the 2012 Quarter in support of our Forward-branded product business, compared to the three months ended September 30, 2011. The increase in prepaid and other current assets is due primarily to advances made to suppliers of our Forward-branded products for inventory purchases, as well as, tooling and molding costs in support of firm purchase orders. The increase in accrued expenses and other current liabilities is primarily due to receipts of inventory for which we had not yet received an invoice from our suppliers as of December 31, 2011.
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