San Diego-based InfoSonics Corp. (Nasdaq: IFON), a distributor of wireless handsets and accessories serving Latin America and the United States, reported Tuesday its fourth quarter net income fell 31 percent to $560,958, compared to $811,179 in the previous year's quarter.
Net income for the year ended Dec. 31, 2006 was $2.5 million, or 16 cents per diluted share, based on 15.8 million diluted weighted-average shares outstanding, compared with $2.7 million, or 22 cents per diluted share, based on 12.3 million diluted weighted-average shares outstanding in the same period a year ago.
The net income for 2005 included a gain from discontinued operations of approximately $369,000, or 3 cents per share. The higher share base in 2006 is primarily due to a private placement of 2.2 million shares, which took place in January 2006.
“2006 was a terrific year for InfoSonics as we continued to expand our geographic footprint, made significant investments in our infrastructure by establishing a local presence in new markets, further enhanced our product mix and expanded our customer relationships,” stated Joseph Ram, president and CEO.
Ram continued, “During 2006 we continued to control our costs and in spite of investments in our infrastructure, we achieved another year of profitability. With a sound strategy, solid financial position and a proven track record of success, we believe that InfoSonics is well positioned to capitalize on future opportunities.”
Net sales for the fourth quarter of 2006 were $60.9 million, a 74.1 percent increase, compared with $35 million for the fourth quarter of 2005.
Shares of the company fell 53 cents, or more than 11 percent, to $3.97 in afternoon trading.