iGo, a provider of eco-friendly power management products, has reported revenue of $8.2m in the first quarter of fiscal 2010, compared to $13.4m in the same period of the prior year. The decline in revenue is primarily due to lower sales to private label distributors.
Net income was $769,000, or $0.02 per share, in the first quarter of 2010, compared with a net loss of $1.1m, or $0.03 loss per share, in the same quarter of the prior year.
Net income for the first quarter of 2010 was positively impacted by a $1.7m gain recognized upon the reversal of a valuation allowance that had been previously recorded against a note receivable from Mission Technology Group, which acquired iGo’s expansion/docking business in 2007.
Gross margin was 32.5% in the first quarter, compared to 29.1% in the first quarter of 2009. The increase in gross margin is primarily due to a greater percentage of revenue being generated through higher margin direct to retail sales efforts.
Michael Heil, president and chief executive officer of iGo, said: “Going forward, we expect to see a steady increase in revenue driven by the new accounts we have added in the consumer electronics and small- and medium-business (SMB) channels.
“Our storecount in North America has increased more than 20% since the start of the year and we are now in more than 15,000 locations. As we continue to add more accounts and grow revenue, we believe we can deliver sustainable improvement in our profitability.”