* Loss per share of 33 cents is almost double Wall Street
* Sales fall to $1 billion from $1.03 billion
* Interim CEO "most disappointed" with post-paid mobile
* Shares fall 13 percent to $2.08
By Dhanya Skariachan
Oct 23 U.S. consumer electronics chain
RadioShack Corp reported a much wider-than-expected
quarterly loss on Tuesday, hurt by weak margins in its
smartphone business, and its shares fell 13 percent.
The dismal results came less than a month before the
unofficial start of the all-important holiday season, raising
fresh concerns about the future of the retailer, which lost its
merchandising chief in June and its chief executive officer in
"Things went from bad to worse," BB&T Capital Markets
analyst Anthony Chukumba said. "The company's rapidly
deteriorating fundamentals provide an additional sense of
urgency to its need to hire a new CEO, preferably one with
significant turnaround experience."
The retailer also faces aggressive competition from the
likes of Best Buy Co Inc, Amazon.com Inc and
stores operated by mobile phone companies. And like larger rival
Best Buy, RadioShack has been struggling to win U.S. shoppers
who increasingly buy their gadgets online.
RadioShack has been struggling strategically and
operationally, and the management reshuffles augment the
challenges, RBC Capital Markets analyst Scot Ciccarelli said
earlier this week.
RadioShack has been focusing increasingly on selling more
calling plans and smartphones, particularly Apple Inc's
The profit margin on iPhones is significantly lower than on
mobile devices that use the Android operating system, analysts
and other industry watchers have told Reuters.
Most of RadioShack's major wireless partners - Sprint Nextel
Corp, the Verizon Wireless venture of Verizon
Communications Inc and Vodafone Group Plc, and
AT&T Inc - are now pushing the more heavily subsidized
Interim CEO Dorvin Lively said he was "most disappointed" in
the company's post-paid mobile phone business, where customers
are billed monthly based on either the terms of a contract or on
the amount of services they have used.
The net loss was $47 million, or 47 cents a share, in the
third quarter, compared with year-earlier net income of
$300,000, or nil per share.
Excluding impairment charges and other one-time items, the
loss was 33 cents a share, while analysts on average were
expecting a loss of 17 cents, according to Thomson Reuters
Net sales fell to $1 billion from $1.03 billion a year
earlier. Sales at stores open at least a year fell 1.6 percent.
The company, which had suspended its dividend earlier this
year to refinance and pay down debt, said its financial position
and balance sheet were "strong" and that it had liquidity
exceeding $900 million.
RadioShack shares were down 13 percent at $2.08 in premarket