Please wait while we load the requested 10-Q report or click the link below:
One Franklin Plaza
Burlington, NJ 08016-4907
|CONTACT:||Frank A. Musto|
|Vice President and|
|Chief Financial Officer|
FOR IMMEDIATE RELEASE
FRANKLIN ELECTRONIC PUBLISHERS REPORTS PROFITABLE
SECOND QUARTER RESULTS
BURLINGTON, NEW JERSEY November 13, 2009 Franklin Electronic Publishers, Inc. (NYSE AMEX:FEP), a world leader in electronic handheld information, today reported net income of $140,000 or $0.02 per share for the fiscal 2010 second quarter ended September 30, 2009 compared to a net loss of $231,000 or $0.03 per share in the same quarter last year. Sales in the current period declined 10% to $11,137,000 from $12,434,000 in the prior year.
During the current fiscal quarter all operating subsidiaries, experienced a decline in sales with the exception of the Companys technology licensing Proximity Division, which experienced increased sales revenue during the quarter. Sales in our European operations continued to decline due to the lingering global recessions impact on consumer confidence and its impact on the retail markets as well as from the phasing out of older products and the transitioning into enhanced or new models. Sales from the North American operations also decreased as a result of a weaker year over year back to school season.
Total gross margin as a percentage of sales increased six percentage points to 54% from 48% reported in the same period last year. The increase was primarily due to the dollar contribution generated from the Companys technology licensing Proximity Division, a reduction in inventory overhead allocation as a result of the cost cutting initiatives implemented during fiscal 2009, and a more favorable margin product mix; partially offset by the impact of currency exchange due to the strength of the U.S. dollar against the euro.
The Companys total operating costs and expenses decreased $410,000 or 7%, benefiting from the cost cutting initiatives implemented during fiscal year 2009. The current quarter includes $593,000 of costs related primarily to legal and investment banking fees associated with the efforts of the Special Committee appointed by the Board of Directors to consider acquisition proposals for the shares of Franklin. Excluding these costs, operating expenses would have decreased $1,003,000 or 16% when comparing the current fiscal quarter to the same quarter last year. Net income increased to $140,000 for the current fiscal quarter compared to a net loss of $231,000 during the same period last year. Adjusting for the legal and investment banking costs as stated above, net income for the current quarter would have been $733,000 or $0.09 per share.
For the six months ended September 30, 2009, total sales decreased 11% to $21,757,000 from $24,427,000 for the same period last year. Net income for the six months was $263,000 or $0.03 per share, compared to a net loss of $1,394,000 or $0.17 per share in the prior period. The current year results included $675,000 of costs related primarily to legal and investment banking costs as mentioned above. Excluding these costs, net income for the six months ended September 30, 2009 would have been $938,000 or $0.11 per share.
The following information was filed by Franklin Electronic Publishers Inc on Friday, November 13, 2009 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
View differences made from one quarter to another to evaluate Franklin Electronic Publishers Inc's financial trajectory
Compare this 10-Q Quarterly Report to its predecessor by reading our highlights to see what text and tables were
removed , and by Franklin Electronic Publishers Inc.