WEST MELBOURNE, Fla. , Aug. 13 /PRNewswire-FirstCall/ -- RELM Wireless Corporation (Amex: RWC) today announced its financial and operating results for the second quarter and first half of 2008.
For the quarter ended June 30, 2008 , sales totaled approximately
Gross profit margin for the second quarter of 2008 was 50.8% of sales,
versus 57.8% of sales in the same quarter last year. Selling, general and
administrative expenses for the quarter totaled
RELM President and Chief Executive Officer David Storey commented,
"Although our financial and operating results for the second quarter 2008 were
below those of the comparable quarter last year, they reflect a significant
improvement from the first quarter results. Total second quarter sales were
almost 80% higher, and P25 digital sales more than doubled when compared with
the first quarter of 2008, both of which contributed to a rebound in gross
margins. Also, considering the current uncertain economic environment, we
have taken steps to reduce our selling, general and administrative expenses by
Storey continued, "Both quarters included higher than normal product development expenses, reflecting initiatives to accelerate the introduction of our next-generation KNG line of P25 digital products. The first product model in this line was completed and released for sale in June 2008 . Additional models will be introduced in coming months that will address frequencies and markets in which we have not previously had a presence. Once these models are completed, we anticipate that engineering and product development expenses will return to normalized levels."
"Many competitors are currently enduring a difficult business climate. We believe, however, that RELM's broader line of new digital products with their competitive advantages, combined with a reduced cost structure, will strengthen and position RELM for success going forward," concluded Storey.
For the six months ended June 30, 2008 , sales totaled approximately
Gross profit margin for the six months ended June 30, 2008 was 46.7% of
sales, versus 52.7% of sales in the corresponding period of the previous year.
Selling, general and administrative expenses for the year-to-date period