Forward Industries Reports 2010 EPS of $0.21 vs. $0.18 (FORD)

Forward Industries (NASDAQ: FORD), a designer and distributor of custom carry and protective solutions, today announced financial results for its fiscal year ended September 30, 2010.

Fiscal 2010 Financial Results – Compared to Fiscal 2009:

* Net sales increased $1.6 million, or 9%, to $19.0 million in Fiscal 2010 due to higher sales of diabetic products, which increased $1.1 million, or 8%, and higher sales of “Other Products”, which increased $0.5 million, or 10%.
* Gross profit increased $0.6 million, or 18%, to $4.2 million in Fiscal 2010 primarily due to the $1.6 million increase in net sales and, to a lesser extent, decreases in Hong Kong costs and freight, duties and customs costs.
* Selling expenses decreased $0.4 million, or 17%, to $2.2 million in Fiscal 2010 from $2.6 million in Fiscal 2009 due primarily to reductions in selling personnel costs.
* General and administrative expenses increased $1.3 million, or 57%, to $3.6 million in Fiscal 2010. Of this increase, approximately $1.1 million was attributable to developments leading up to and including the Settlement Agreement entered into in August 2010.
* Other income declined $0.2 million to $10 thousand in Fiscal 2010 due primarily to lower average interest rates on slightly lower cash balances compared to Fiscal 2009.
* Net loss was $1.7 million in Fiscal 2010 compared to net loss of $1.4 million in Fiscal 2009. The higher net loss is primarily the result of higher general and administrative expenses (including the approximately $1.1 million attributable to the Settlement Agreement referred to above) and to a lesser extent lower “other income”, offset in part by higher gross profit, lower selling expenses, and lower income tax expense.

Brett M. Johnson, Forward's President and Chief Executive Officer, commented: “During my brief time at Forward, I am impressed by the capabilities of the Organization and even more confident than ever of the prospects to expand.

Our OEM business is strong, and I'm pleased with the growth in sales this year. I am committed to furthering this growth and feel there is significant opportunity to do so. In addition, Forward is well positioned to expand beyond its OEM business into new products, channels and geographies. I am confident that with the combined strength of our balance sheet and our management team we will transform the company into a leader in the technology accessories category.”