Forward Reports Fiscal 2024 First Quarter Results
- Revenue decline of 26.7% compared to the previous year.
- Gross margin improvement to 23.0% from 20.2% in 2023.
- Loss from continuing operations increased to $0.4 million.
- Cash balance decreased by 5% to $3.0 million.
- CEO Terry Wise expressed commitment to growth and recovery efforts.
- None.
Insights
The reported decrease in revenues by 26.7% for Forward Industries is a significant contraction, indicating a potential challenge in the company's market position or operational efficiency. However, the improvement in gross margin from 20.2% to 23.0% suggests more effective cost management or a shift towards higher-margin products. The reduction in cash balance, albeit modest, could signal tighter liquidity, which investors should monitor closely, especially in the context of the company's ongoing initiatives to return to profitability.
Forward Industries' performance must be contextualized within the broader industry trends. The contraction in revenue may reflect competitive pressures or a decrease in demand for the company's products. A static quarter with no significant changes in net loss suggests stability, but the lack of growth could be concerning. The company's commitment to growth and recovery, as stated by the CEO, will likely involve strategic investments or market expansion efforts, the effectiveness of which will be crucial for future performance.
Macro-economic factors could be influencing Forward Industries' financial results. For instance, economic slowdowns, changes in consumer spending, or international trade dynamics could be affecting sales. The company's ability to improve gross margins despite revenue decline could indicate resilience and adaptability to economic conditions. However, the pursuit of profitability must also consider the economic outlook, as external factors could either hinder or facilitate the company's recovery efforts.
HAUPPAUGE, N.Y., Feb. 14, 2024 (GLOBE NEWSWIRE) -- Forward Industries, Inc. (NASDAQ:FORD), a global design, sourcing and distribution group, today announced financial results for its first quarter ended December 31, 2023.
First Quarter Fiscal Year 2024 Financial Highlights
- Revenues were
$7.2 million , a decrease of26.7% from$9.8 million for 2023. - Gross margin increased to
23.0% compared to20.2% for 2023. - Loss from continuing operations was
$0.4 million compared to$0.1 million in 2023 and net loss was$0.4 million compared to$0.4 million in 2023. - Basic and diluted loss per share from continuing operations was
$0.04 compared to$0.01 for 2023. - Cash balance of
$3.0 million at December 31, 2023 compared to$3.2 million at September 30, 2023, a decrease of5% .
Terry Wise, Chief Executive Officer of Forward Industries, stated “A relatively static quarter with a pleasing improvement in gross margin. Our effort to turnaround the business into profitability continues with several initiatives now in place. We remain committed to the path of growth and recovery.”
The tables below are derived from the Company’s condensed consolidated financial statements included in its Form 10-Q filed on February 14, 2024 with the Securities and Exchange Commission. Please refer to the Form 10-Q for complete financial statements and further information regarding the Company’s results of operations and financial condition relating to the fiscal quarters ended December 31, 2023 and 2022. Please also refer to the Company’s Form 10-K for a discussion of risk factors applicable to the Company and its business.
Cautionary Note Regarding Forward-Looking Statements
This press release contains certain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 including statements regarding our optimism for improved performance in fiscal year 2024 and profitability and growth in our businesses. Forward has tried to identify these forward-looking statements by using words such as “may”, “should,” “expect,” “hope,” “anticipate,” “believe,” “intend,” “plan,” “estimate” and similar expressions. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties and other factors that could cause its actual results, performance, prospects or opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. These risks include the inability to expand our customer base, loss of additional customers, competition, pricing pressures, supply chain issues, inability of our design division’s customers to pay for our services, loss of talented employees, unanticipated issues with our affiliated sourcing agent, and issues at Chinese factories that source our products. No assurance can be given that the actual results will be consistent with the forward-looking statements. Investors should read carefully the factors described in the “Risk Factors” section of the Company’s filings with the SEC, including the Company’s Form 10-K for the year ended September 30, 2023 for information regarding risk factors that could affect the Company’s results. Except as otherwise required by Federal securities laws, Forward undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changed circumstances or any other reason.
About Forward Industries
Forward is a global design, sourcing and distribution group serving top tier medical and technology customers worldwide. Through its acquisitions of Intelligent Product Solutions, Inc. and Kablooe Design, Inc., the Company has expanded its ability to design and develop solutions for its existing multinational client base and expand beyond the diabetic product line into a variety of industries with a full spectrum of hardware and software product design and engineering services.
For more information, contact:
Kathleen Weisberg, CFO, Forward Industries, Inc.
(631) 547-3055, kweisberg@forwardindustries.com
| FORWARD INDUSTRIES, INC. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| December 31, | September 30, | ||||||
| 2023 | 2023 | ||||||
| Assets | (Unaudited) | ||||||
| Current assets: | |||||||
| Cash | $ | 3,026,786 | $ | 3,180,468 | |||
| Accounts receivable, net | 6,534,702 | 6,968,778 | |||||
| Inventories, net | 405,229 | 334,384 | |||||
| Discontinued assets held for sale | 135,604 | 508,077 | |||||
| Prepaid expenses and other current assets | 392,282 | 378,512 | |||||
| Total current assets | 10,494,603 | 11,370,219 | |||||
| Property and equipment, net | 265,346 | 274,046 | |||||
| Intangible assets, net | 839,954 | 893,143 | |||||
| Goodwill | 1,758,682 | 1,758,682 | |||||
| Operating lease right-of-use assets, net | 2,916,385 | 3,021,315 | |||||
| Other assets | 68,737 | 68,737 | |||||
| Total assets | $ | 16,343,707 | $ | 17,386,142 | |||
| Liabilities and shareholders' equity | |||||||
| Current liabilities: | |||||||
| Note payable to Forward China | $ | 850,000 | $ | - | |||
| Accounts payable | 392,202 | 518,892 | |||||
| Due to Forward China | 8,894,245 | 8,246,015 | |||||
| Deferred income | 250,405 | 297,407 | |||||
| Current portion of operating lease liability | 425,998 | 416,042 | |||||
| Accrued expenses and other current liabilities | 494,724 | 1,357,743 | |||||
| Total current liabilities | 11,307,574 | 10,836,099 | |||||
| Other liabilities: | |||||||
| Note payable to Forward China | - | 1,100,000 | |||||
| Operating lease liability, less current portion | 2,723,281 | 2,833,782 | |||||
| Total other liabilities | 2,723,281 | 3,933,782 | |||||
| Total liabilities | 14,030,855 | 14,769,881 | |||||
| Commitments and contingencies | |||||||
| Shareholders' equity: | |||||||
| Common stock, par value | |||||||
| 10,061,185 shares issued and outstanding at December 31, 2023 | |||||||
| and September 30, 2023 | 100,612 | 100,612 | |||||
| Additional paid-in capital | 20,253,013 | 20,202,202 | |||||
| Accumulated deficit | (18,040,773 | ) | (17,686,553 | ) | |||
| Total shareholders' equity | 2,312,852 | 2,616,261 | |||||
| Total liabilities and shareholders' equity | $ | 16,343,707 | $ | 17,386,142 | |||
| FORWARD INDUSTRIES, INC. AND SUBSIDIARIES | |||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||
| (UNAUDITED) | |||||||
| For the Three Months Ended December 31, | |||||||
| 2023 | 2022 | ||||||
| Revenues, net | $ | 7,151,951 | $ | 9,752,684 | |||
| Cost of sales | 5,509,465 | 7,786,614 | |||||
| Gross profit | 1,642,486 | 1,966,070 | |||||
| Sales and marketing expenses | 368,736 | 411,174 | |||||
| General and administrative expenses | 1,654,071 | 1,682,812 | |||||
| Operating loss | (380,321 | ) | (127,916 | ) | |||
| Fair value adjustment of earnout consideration | - | (40,000 | ) | ||||
| Interest income | (17,469 | ) | - | ||||
| Interest expense | 19,010 | 27,958 | |||||
| Other income, net | (687 | ) | (24,560 | ) | |||
| Loss from continuing operations before income taxes | (381,175 | ) | (91,314 | ) | |||
| Provision for income taxes | - | - | |||||
| Loss from continuing operations | (381,175 | ) | (91,314 | ) | |||
| Income / (loss) from discontinued operations, net of tax | 26,955 | (338,961 | ) | ||||
| Net loss | $ | (354,220 | ) | $ | (430,275 | ) | |
| Basic earnings/(loss) per share : | |||||||
| Basic loss per share from continuing operations | $ | (0.04 | ) | $ | (0.01 | ) | |
| Basic earnings/(loss) per share from discontinued operations | 0.00 | (0.03 | ) | ||||
| Basic loss per share | $ | (0.04 | ) | $ | (0.04 | ) | |
| Diluted earnings/(loss) per share: | |||||||
| Diluted loss per share from continuing operations | $ | (0.04 | ) | $ | (0.01 | ) | |
| Diluted earnings/(loss) per share from discontinued operations | 0.00 | (0.03 | ) | ||||
| Diluted loss per share | $ | (0.04 | ) | $ | (0.04 | ) | |
| Weighted average common shares outstanding: | |||||||
| Basic | 10,061,185 | 10,061,185 | |||||
| Diluted | 10,061,185 | 10,061,185 | |||||
FAQ
What was the revenue decline percentage for Forward Industries (FORD) in the first quarter of fiscal year 2024?
What was the gross margin percentage increase for Forward Industries (FORD) in the first quarter of fiscal year 2024?
How much was the loss from continuing operations for Forward Industries (FORD) in the first quarter of fiscal year 2024?
What was the cash balance at the end of December 31, 2023, for Forward Industries (FORD)?
What did CEO Terry Wise mention about Forward Industries' (FORD) performance in the first quarter of fiscal year 2024?
