Wireless Xcessories Group Reports First Quarter Results25 April 2005
Wireless Xcessories Group, Inc. (OTCBB:WIRX), a nationwide distributor of over 4,000 accessories for cellular phones and other wireless devices, announced today its results for the first quarter ended March 31, 2005.
The company reported revenue of $4,955,000, an increase of 57% compared to $3,151,000 for the same period in fiscal 2004. Wireless Xcessories Group had net income of $575,000, or $0.13 per basic and diluted share, an increase of 745% compared to net income of $68,000, or $0.01 per basic and diluted share in the same period for 2004.
Steve Rade, CEO stated: "The combination of new products, increased sales and Internet distribution has resulted in our strong increase in revenue and earnings."
"New products such as the IPOD, MP3, PDA, Bluetooth, and OEM accessories along with the distribution of phones helped us to penetrate new markets, in addition to funneling more product categories to our regular customer base. The investments we made in additional sales personnel have paid off. We increased our sales organization by 20%, which has allowed us to expand our marketing to new dealers and provide better service to our current customers. In addition to the increase in our sales force, we saw strong growth from our IndustrialStrengthCellular.com accessory website. As of April 1st, we had 500 partners with 5,000 storefronts. The site serves to enhance our relationships with wireless dealers, who expand their commitment to selling our products by affiliating with our website."
Business Outlook
The company plans for the balance of 2005 to focus on expanding the variety of phone brands it sells and the addition of entertainment accessories like MP3 players. This initiative, along with enhanced sales and marketing activities, allow the Company to increase its full-year revenue guidance from a 20% increase in sales versus 2004 to a 30% increase. The Company today is also increasing its projected net income from its previously announced increase of 30% compared with 2004 to 50% for 2005.
We recently applied for listing on the American Stock Exchange and are waiting to receive approval of our application.
Wireless Xcessories Group, Inc. designs and distributes a range of accessories for cellular phones throughout the United States and Canada. The Company offers in excess of 4,000 items that include rechargeable batteries, personal and vehicle hands free kits, portable and vehicle antennas, in-car and travel chargers, and plain and colored carrying cases. The Company sells to dealers and distributors through an in-house sales force and directly from its website, www.wirexgroup.com. Wireless Xcessories also creates customized e- commerce websites, Industrial Cellular Strength.com, for its dealers and produces 2 product line catalogs that are circulated nationally and internationally.
This press release contains forward-looking statements, Actual results may differ materially from the forward-looking statements. All such statements may involve risk and uncertainties, including without limitation, whether the new product lines will have a positive impact on sales and profits, as well as any other assertions and risks detailed in the Wireless Xcessories Group, Inc. filings and reports with the Securities and Exchange Commission. Such statements are only predictions and actual events or results may differ.
Contacts
Wireless Xcessories Group, Inc.
Dan Kenderdine, 800-233-0013 x 1404
or
CEOcast
Ed Lewis, 212-732-4300
Source: Business Wire
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