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iGo Inc Reports Operating Results (10-Q)

August 07, 2012 | About:
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10qk

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iGo Inc (IGOI) filed Quarterly Report for the period ended 2012-06-30.

Igo, Inc. has a market cap of $18.5 million; its shares were traded at around $0.55 with and P/S ratio of 0.5.

Highlight of Business Operations:

The decrease in cost of revenue and gross profit is primarily due to the decline in overall sales, shift in product mix, and decline in average selling prices to Walmart and other customers. Labor and overhead expenses, which are mostly fixed, decreased by $400,000 to $1.4 million, or 18.7% of revenue, for the three months ended June 30, 2012, compared to $1.8 million, or 16.2% of revenue, for the three months ended June 30, 2011. The decline in gross margin is primarily due to the decline in selling price relating to power products, audio and other accessories. However, cost of revenue as a percentage of revenue increased to 80.3% for the three months ended June 30, 2012 from 74.1% for the three months ended June 30, 2011, primarily due to the decline in overall sales.

The decrease in general and administrative expenses primarily resulted from a decrease of $121,000 in personnel-related expenses and $170,000 in equity compensation, partially offset by an increase in bad debt expense of $80,000 during the three months ended June 30, 2012 compared to the three months ended June 30, 2011. General and administrative expenses as a percentage of revenue increased to 24.8% for the three months ended June 30, 2012 from 18.8% for the three months ended June 30, 2011.

The cost of revenue and gross profit decreased primarily due to the decline in overall sales, shift in product mix, and decline in average selling prices to Walmart and other customers. Labor and overhead expenses, which are mostly fixed, decreased by $318,000 to $2.8 million, or 17.7% of revenue, for the six months ended June 30, 2012, compared to $3.1 million, or 15.3% of revenue, for the six months ended June 30, 2011. However, cost of revenue as a percentage of revenue increased to 81.5% for the six months ended June 30, 2012 from 71.8% for the six months ended June 30, 2011, primarily due to the decline in overall sales. The decline in gross margin is primarily due to the decline in selling price relating to power products, audio and other accessories.

The increase in research and development expenses primarily resulted from the increases of approximately $95,000 in personnel-related expenses, and approximately $85,000 in market research, engineering consulting and product certifications for the six months ended June 30, 2012 compared to the six months ended June 30, 2011. As a percentage of revenue, research and development expenses increased to 8.2% for the six months ended June 30, 2012 from 5.4% for the six months ended June 30, 2011. We anticipate increased research and development expenses in the remainder of 2012 compared to 2011.

The decrease in general and administrative expenses primarily resulted from decreases of $95,000 in personal related expenses, $130,000 in equity compensation, $25,000 in telephone and utilities, $17,000 in shareholder services, and $14,000 in bank fees during the six months ended June 30, 2012 compared to the six months ended June 30, 2011. General and administrative expenses as a percentage of revenue increased to 24.5% for the six months ended June 30, 2012 from 20.3% for the six months ended June 30, 2011.

Read the The complete Report

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