FORD Nasdaq .79/.84-Quick Look-
5.8m outstanding, 52wh 1.19
Forward Industries, Inc. designs and markets custom soft-sided carrying cases, bags and clips from leather, nylon, vinyl and other synthetic fabrics (the carrying cases business), through its wholly owned subsidiaries, Koszegi Industries, Inc. and Forward Innovations GmbH. These carrying cases and bags are utilized for transporting portable electronic products, such as cellular telephones, medical instruments, computers and other handheld devices. The Company markets its custom carrying cases to original equipment manufacturers, principally in the communications (principally cellular telephones), computer, medical instrumentation, testing and measurement equipment industries.
9mo earnings thru 6-30-2002:
Forward Industries Reports Improved Third Quarter Result
Two Directors Added
POMPANO BEACH, Fla.--(BUSINESS WIRE)--July 30, 2002--Forward Industries, Inc. (Nasdaq:FORD - News), a designer, and distributor of custom carrying case solutions, today announced results for its fiscal third quarter ended June 30, 2002. The period represents Forward's third consecutive quarter of profitability. Results for the three and nine months ended June 30, 2002 are presented below.
Third Quarter 2002 Financial Highlights - compared to third quarter 2001 results
· Net sales increased 73% to $4.1 million.
· Net income improved significantly to $248,711, or $.04 per diluted share, from a net loss of $305,535, or $.05 per diluted share.
Nine-Month 2002 Financial Highlights - compared to nine month 2001 results
· Net sales increased 24% to $12.3 million.
· Net income rose 265% to $438,004 or $.08 per diluted share, from $120,096, or $.02 per diluted share.
Jerome E. Ball, Chairman and Chief Executive Officer of Forward, stated, "We are pleased with our fiscal third quarter and year to date results. The significantly higher sales were largely the result of increased orders for our diabetic monitoring equipment cases from customers including Bayer, Lifescan, Roche, Abbott Laboratories and TheraSense. We believe that these developments reflect management's hard work and focus to penetrate this very important market.
"We also recorded increased sales under our license agreement with Motorola, pursuant to which we distribute carrying solutions for Motorola's mobile phones in the European, Middle Eastern and African markets. Products sold under this agreement generated approximately $685,000 in sales in our fiscal third quarter, compared to $430,000 in our fiscal second quarter and $500,000 in our fiscal first quarter. These sales are in addition to direct sales to Motorola, which are not covered by the agreement. As previously announced, we are currently in discussions with Motorola to amend the terms of the agreement, and we are optimistic that the negotiations will be successful and mutually beneficial. Against the possibility that such negotiations are not successful, as announced previously, we have given notice to terminate the agreement effective September 30, 2002.
"In summary, in a very difficult economic environment, our efforts have enabled us to report increased revenues and profits. The higher sales achieved in the third quarter translated into a significantly improved bottom-line, representing our third consecutive quarter of profitability." END
Recent event:
B: Forward and Motorola Amend Licensing Agreement
POMPANO BEACH, Fla., Aug 28, 2002 (BUSINESS WIRE) -- Forward Industries, Inc.
(Nasdaq:FORD), a designer and distributor of custom carrying case solutions,
today announced that it amended certain terms of its licensing agreement with
Motorola, Inc. (NYSE:MOT).
Accordingly, Forward rescinded its previously issued termination notice. Under
the licensing agreement, which has a term through September 30, 2004, Forward
distributes its products under the Motorola brand to customers throughout the
European, Middle Eastern and African (EMEA) markets.
Jerome E. Ball, Chairman and Chief Executive Officer of Forward, commented, "We
are extremely grateful to Motorola for their continued confidence in our
Company. Motorola's strong brand recognition combined with our ability to
quickly move superior products into the market will help us achieve our mutual
goal of expanding wireless accessory sales in the EMEA region. We look forward
to working with Motorola for many years to come as we continue to build upon our
15-year relationship."END
The numbers here are getting stronger. Investors are making the wrong link to FORD's largest customer base. It IS cell phones...but it is cell phone USERS...cases/carrying bags for protection/transport---which involves a monumental number of installed users and millions of new users added each year worldwide. Sales to Europe, Africa and the Middle East are beginning to ramp up thru an agreement with Motorola.They also sell a growing number of cases to diabetics (some of these sales are thru an agreement w/Therasense), for transport and protection of other medical instruments, electronic components, compuer users etc...
And thru Motorola, under a newly revised agreement reached last week, they continue to have a major name using and moving their products. The Motorola revised agreement will add to their bottom line almost immediately. And they are in the door w/Noika, moving about $1m of product w/Noika this year. And they are pushing for new agreements, more sector and niches.
The year should end up strong...no seasonal aspects.
IF/AS/WHEN FORD gets more of the new and installed cellular base and pursues additonal application/product tie-ins for their cases and bags the numbers should continue to go up. MOT has only about 15% of the cellular market. If they can increase their sales to Noika and land a few more majors the numbers could really move. And that's just one outlet for their products, altho by far the largest at this juncture.
Revenue is already up 25% for the year and net inc has more than tripled so far vs last year to $438,000, with $248,000 of that coming in the 3rd qtr ending 6-30-2002. No long term debt, cash is over $780,000 and no preferred with SE at $3.2m. Insiders are buying and the company has a history of stock buy backs. Initial target price is $2.50. All above my opinion only except for factual data. |
