RadioShack reports massive profit drop

RadioShack reports massive profit drop

RadioShack Corp. (NYSE:RSH) has come out with their quarterly revenue reports and they have said that profits in the last quarter went down by as much as 85 percent.

The company has suffered massively due to weaker-than-expected mobile phone sales and inventory write-downs.

RadioShack reported first-quarter earnings of $8.4 million, or 6 cents per share. This is a disappointing result compared to earnings of $55 million, or 34 cents per share, a year earlier.

Market analysts had expected them to come out with figures of 18 cents per share. RadioShack’s Claire Babrowski, president and acting CEO said in a statement on this disappointing performance: “Wireless sales, in particular, were below our expectations and helped contribute to overall financials that were disappointing. While we knew first quarter would be weak, the results are worse than we anticipated.”

The company is still looking for a permanent replacement for CEO David Edmondson who resigned earlier this year after he admitted to “clearly” misstating his academic record on his resume and on the company’s Web site.