RadioShack Corporation Reports First-Quarter 2012 Results

RadioShack Corporation a leading national retailer of innovative mobile and technology products, services and accessories, today reported results for the first quarter ended March 31, 2012.Jim Gooch, president and chief executive officer of RadioShack Corp., said, "As we anticipated, the first quarter was extremely challenging. While our results were disappointing, we are working quickly to drive top line growth and expand margins. We were pleased to see progress from initiatives we began implementing last year, particularly in our highest gross margin signature platform. We believe these initiatives contributed to monthly sequential improvement in Company performance throughout the quarter that has continued into April."
Mr. Gooch continued, "Moreover, we are acting decisively to improve our marketing, with a sharpened mobility message that heightens awareness of our broad mobile offerings, a changed media mix, and a new lead creative agency. We are continuing to capitalize on our successes in expanding product assortments in the signature product platform. And, we are pursuing incremental growth through targeted international ventures and relationships that build on our strengths."
Mr. Gooch added, "As a result of these initiatives, and with our continued commitment to stringent cost control and cash management, we are confident in our ability to drive sequential quarterly improvement in performance throughout 2012."Dorvin Lively, executive vice president, chief financial officer and chief administrative officer, said, "Our substantial cash position allows us to manage through this period with maximum flexibility while reinvesting in the business to drive improved financial performance for our shareholders. Moreover, our new quarterly dividend is a central component of our commitment to returning value to shareholders."
Comparable store sales for company-operated stores and Target Mobile centers decreased 4.2% during the 2012 first quarter, which was primarily attributable to a decline in Sprint postpaid wireless sales, as well as decreased sales of prepaid wireless handsets, laptops and home entertainment accessories. This decrease was partially offset by higher postpaid wireless sales of AT&T, as well as sales of tablet devices, tablet accessories, headphones, and a net increase in sales at U.S. RadioShack company-operated stores of Verizon Wireless postpaid sales compared to T-Mobile postpaid sales in the 2011 first quarter.