As Soyo Group Inc. (OTCBB: SOYO.OB) strives to increase its share price to $2, the consumer electronics manufacturer-distributor announced on Thursday that it netted a mere $30,000 in second-quarter earnings — substantially lower than the $1 million projected.
The stock closed at 70 cents on Thursday.
Higher fuel and shipping costs are eating away at the Ontario company’s profits, the company said in a statement. Shipping expenses were $1.3 million more than expected.
Soyo had projected $1.5 million in earnings over the first six months of this year, but only $235,000 of that has materialized so far.
Sales jumped 33 percent to $32 million from April to June. It was the company’s 10th consecutive quarter of year-over-year sales increases.
If Soyo’s stock reaches $2 a share, the company might get listed on the American Stock Exchange. Shareholders recently approved issuing 125 million more shares, which would more than double the number of outstanding shares.
While Soyo is looking to acquire financially-troubled electronics companies, it’s trying to market computer, telecommunications and electronics products in an economy that’s forcing similar companies to go bankrupt.
Last year, Soyo signed a deal with Honeywell International Inc. to supply the electrical industry giant with LCD and plasma flat-panel televisions.
After the company went public in mid-2005, its stock reached a record peak of $1.48 in October.
–matthew.wrye@inlandnewspapers.com
