Radio Shack Announces Earnings, 20% Increase in Satellite Radio & MP3 Sales
RadioShack Corporation Announces 2006 Second Quarter Financial ResultsTurnaround Activities, Class-Action Lawsuit Settlements Negatively Impact Earnings
Last Update: 6:59 AM ET Jul 21, 2006
FORT WORTH, Texas, July 21, 2006 /PRNewswire-FirstCall via COMTEX/ (
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"Radio Shack today announced a net loss of $3 million or ($0.02) per diluted share for the quarter ended June 30, 2006 versus net income of $52 million or $0.33 per diluted share for the quarter ended June 30, 2005."
"Financial performance for the quarter was consistent with our expectations," said Claire Babrowski, president and chief operating officer. "We are pleased with the progress we are making on our turnaround plan. From a cost and timing perspective, our turnaround activities are on or better than plan. In addition, we saw sequential improvement in cash generation due to better inventory management."
"Other drivers of RadioShack's second quarter 2006 sales aside from wireless were:
* The personal electronics platform had a 20% sales increase due to
higher sales of MP3 players and satellite radios.
* The accessories platform was up 9%, driven by strong sales of MP3
accessories, Bluetooth accessories, and flash memory.
* Income statement geography changes relating to the sale of prepaid
wireless airtime (due primarily to contract changes) reduced sales in
the quarter by roughly 300 basis points but did not impact operating
profit. This factor also impacted sales growth trends in the first
quarter and will again in the third and fourth quarters."
7/21/2006 08:07:00 AM
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