RadioShack reports impressive profits
Electronics retailer RadioShack Corporation has reported impressive figures for the third quarter. The company reported a rise of around 56 percent on a large one-time gain and increased sales. RadioShackâ€™s net income for the period touched $108.5 million from $69.7 million in this 1-year period. This comes to an income of around 75 cents per share.
However, these figures included a gain of 39 cents per share from the reversal of a tax contingency reserve. Excluding this gain, RadioShack posted earnings per share of 36 cents. This is somewhat lower than what the market expected the company to give out on their results date. Thomson Financial survey had predicted the company to post an earning of 37 cents a share.
The retain chain now aims to focus on satellite radio, digital imaging MP3 and wireless products. Chief Operating Officer David Edmondson said in a statement: “These are hot categories and very productive for RadioShack. They drive traffic into the stores, and they also provide opportunities for selling profitable accessories.”
They recently joined hands with Apple to sell their Apple iPods on their stores. And with consumers associating the brand name to electronic gadgets, deals of similar nature is going to help them in the longer run.