InfoSonics Q2 Net Profit Slides to US$127,000, LatAm Sales Rise"

US and Latin American wireless handset and accessories distributor InfoSonics, posted net profit of US$127,000 in the second quarter of 2006, ended June 30, compared with US$408,000 a year ago, the company said in a statement.

InfoSonics, which specializes in handsets made by Korean manufacturers Samsung and VK Mobile, France's Alcatel and China's TCL, saw six-month net profit of US$1.3mn reflecting a non-cash stock option expense of US$1.2mn and non-cash income from derivative liability for US$0.4mn.

The company recorded a 79% increase in net sales to a record US$58.3mn compared with US$32.5mn in 2Q05, while first half sales rose 99% to US$112mn.

Units shipped in the second quarter of 2006 increased by 169% over 2Q05, offsetting a 36% decrease in average selling price per unit.

The geographic mix of net sales shifted significantly in the quarter as sales in South America and Central America increased substantially while US sales decreased compared to 2Q05.

The South American and Central American regions represented 94% of net sales in the quarter compared to 65% in 2Q05, an increase due primarily to the company's increased sales and marketing efforts as well as the general strength in wireless handset sales in the regions, the company said.

"The second quarter was another strong one for InfoSonics," InfoSonics' president and CEO Joseph Ram said. "We more than doubled the number of units sold compared to the prior year's quarter, and during the first six months of 2006 total units sold were greater than the full year of 2005.

The company also began shipping to carriers in Mexico and Chile.

BNAmericas.com"

Posted to the site on 11th August 2006