Consumer electronics chain RadioShack Corp. (RSH) posted disappointing third-quarter earnings on Tuesday, citing continued weakness in its post-paid mobility business. The Fort Worth, Texas-based company reported a net loss of $47 million, or 47 cents per share, compared to a profit of $300,000, or nil per share, in the year prior quarter. Sales edged lower to $1.0 billion from $1.3 billion a year ago.
Excluding one-time items in SG&A (Selling, General and Administrative) and impairment charges, the loss was reduced to $33 million, or 33 cents per share. The figures were well-off the expectations of Wall Street analysts that were calling for a loss of 17 cents and sales of $1.04 billion.
Comparable store sales were down 1.6 percent.
“Overall, our business performed below expectations,” said Radio Shack interim CEO Dorvin Lively. He continued, “Over the past three months, we executed our plan to raise new capital and achieved our goal of raising $175 million of new financing. The proceeds of this financing along with existing cash will be used to repay the 2013 Convertible Notes. We believe this strikes the right balance of maintaining liquidity necessary to ensure smooth operations of our company and deleveraging the balance sheet. Our financial position and balance sheet are strong, and our liquidity exceeds $900 million.”
With Monday’s drop of 2.05 percent and closing price of $2.39, shares of RSH have lost about 75 percent of their value across 2012. The stock has a 52-week low of $2.01 which was stuck earlier in October.
