Infosonics Stock Declines After Company Posts Net LossThursday, March 15, 2012
Infosonics Corp., a San Diego distributor of cellphones mainly in Latin America and Asia, saw its stock plunge 22 percent to 78 cents March 14 after reporting a 2011 fourth-quarter net loss of $359,000 on revenue of $11.9 million. That compared with a net loss of $725,000 on revenue of $14.5 million in the 2010 fourth quarter.
For all of 2011, Infosonics reported a net loss of $2.5 million, compared with a net loss of $3.6 million in 2010. The company reported revenue last year of $34.8 million, less than half of the $72.5 million in revenue it garnered in 2010.
Infosonics took a huge hit in sales last year when Argentina imposed higher tariffs, effectively increasing the cost of its products by 30 percent.
While the company continued shipping products to Argentina in the fourth quarter, it plans an exit by the first quarter of 2012, said CEO Joseph Ram.
“Given the political uncertainty in Argentina and the oppressive foreign currency controls, import tariffs and duties there, we feel that our exit of this business is timely,” Ram said.
Traded under IFON on Nasdaq, shares have ranged from 50 cents to $2.28 in the past 52 weeks.
— Mike Allen