- During fiscal 2010, the company completed the acquisition of approximately 51% of the outstanding stock of South Korea-based Diffon Inc. in October, 2009. Diffon operates as Franklin's research and development facility and allows the company to directly manage its product design and development efforts. Following the end of the fiscal year, the company announced it had increased its ownership to approximately 58%, had control rights of Diffon and changed the name to Franklin Technology Inc. (FTI).
- On August 2, 2010, the company announced that it had reached an agreement with C-Motech to repurchase all of C-Motech's 3,370,356 Franklin Wireless shares, which represent approximately 24% of Franklin's outstanding shares. 1,803,684 shares were repurchased and transferred on September 14, 2010 and the remaining shares will be repurchased by December 31, 2010. Following the repurchase of all of the shares, the company will have approximately 10.4 million shares outstanding.
- On September 2, 2010 the company announced the launch of its new U600 dual-mode USB modem with Sprint. This device is the company's 3rd generation dual-mode USB modem and is the first one developed by FTI.
FRANKLIN WIRELESS CORP. CONDENSED CONSOLIDATED BALANCE SHEETS (IN THOUSANDS) June 30, June 30, 2010 2009 -------- --------- ASSETS Cash and cash equivalents $ 16,108 $ 6,253 Accounts receivable 3,119 2,813 Inventories 198 2,618 Intangible assets, net 2,859 - Deferred tax assets, net 1,672 2,050 Property and equipment, net 985 90 Other assets 954 34 -------- --------- TOTAL ASSETS $ 25,895 $ 13,858 ======== ========= LIABILITIES AND STOCKHOLDERS' EQUITY Trade accounts payable $ 6,418 $ 4,512 Accrued liabilities 732 76 Other liabilities 3,076 34 -------- --------- TOTAL LIABILITIES 10,226 4,622 -------- --------- Stockholders' equity Common stock 14 13 Additional paid-in capital 5,556 5,019 Retained earnings 8,982 4,204 Non-controlling interest 1,130 - Other (13) - -------- --------- Total stockholders' equity 15,669 9,236 -------- --------- -------- --------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 25,895 $ 13,858 ======== ========= FRANKLIN WIRELESS CORP. STATEMENT OF OPERATIONS (IN THOUSANDS, EXCEPT PER SHARE DATA) TWELVE MONTHS ENDED June 30 2010 2009 --------- --------- Net sales $ 101,898 $ 24,001 Cost of goods sold 87,873 18,824 --------- --------- Gross profit 14,025 5,177 --------- --------- Operating Expenses Selling, general and administrative 6,359 2,860 --------- --------- Total Operating Expenses 6,359 2,860 --------- --------- Income from operations 7,666 2,317 ========= ========= Other income (expense) Interest income 79 85 Other income (expense), net (164) 15 --------- --------- Total other income (expense) (85) 100 --------- --------- Income before taxes 7,581 2,417 Income tax provision/(benefit) 2,954 (1,222) Non-controlling interests in net loss of subsidiary 151 - --------- --------- Net Income $ 4,778 $ 3,639 ========= ========= Basic earnings per share $ 0.35 $ 0.28 Diluted earnings per share $ 0.35 $ 0.27 Weighted average common shares outstanding - basic 13,584 13,231 Weighted average common shares outstanding - diluted 13,741 13,250About Franklin Wireless
Franklin Wireless Corp. (
Certain statements in this press release constitute "forward-looking statements" within the meaning of section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements, expressed or implied by such forward-looking statements.
Contact Information: Contact: Richard Walker Franklin Wireless Corp +1 858 623 0000 rick.walker@franklinwireless.com