InfoSonics Corporation (NASDAQ:IFON)

InfoSonics Corporation (NASDAQ:IFON)

InfoSonics Corporation (NASDAQ:IFON) is a San Diego-based manufacturer and provider of wireless handsets, tablets and related products to carriers, distributors and consumers in the United States and Latin America under the verykool® brand. InfoSonics sells its products through carriers, distributors in Latin America, Europe, Africa, Asia, and the USA. It is best known for its line of inexpensive unlocked phones as well as its rugged phones in its verykool line of products.  The thinly traded nano-cap has an average daily volume figure of 73,770. However today over 6.5 million shares traded – that is a multiple of over 88 times the average.

In 2009, shares of InfoSonics Corporation (NASDAQ:IFON) briefly traded over $6 but by 2003 IFON shares were under $1. In 2014 IFON shares gained to trade over $4 but by early 2017 they were trading well below $1 again. Today the high for IFON was $1.04 – a level not reached since February. Despite the $1.04 that was reached from yesterday’s close of $0.47, the shares declined precipitously during the day’s trading and closed at $0.63.

Sales had increased from 2012 when sales were $34.3 million to $48.1 million in 2014. Since then there have been two years of lower sales and in 2016 InfoSonics Corporation (NASDAQ:IFON) reported $39.1 million. EPS experienced a similar pathway. In 2012 the EPS loss for IFON shareholders was (-$0.18) which found a peak in 2014 with an EPS profit of $0.02. However the decline in EPS started and by 2016 there was an EPS loss of (-$0.20). On the positive side, the company has not hit their shareholders with dilutive offerings. In 2012 the number of outstanding shares was 14.18 million and by 2016 that number had negligibly increased to just 14.39 million.

In March, InfoSonics Corporation (NASDAQ:IFON) reported financial results for FY2016. Gross margins narrowed from 15.51% to 11.73% compared to the same period last year, operating (EBITDA) margins now -5.78% from -1.73%. ear-on-year change in operating cash flow of -85.22% is about the same as the change in earnings, likely no significant movement in accruals or reserves. Earnings rose compared to same period last year, despite decline in operating and pretax margins.

I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.

About the author: James Marion is a University of Houston student studying Business with a concentration in Finance

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James Marion is a University of Houston student studying Business with a concentration in Finance. James has interned with several investment professionals and hopes to pursue a career as a professional stock analyst after graduation.

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