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Investing

The Incredible Shrinking RadioShack (RSH)

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By Douglas A. McIntyre Published
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RadioShack (RSH) swung to a small profit in the last quarter, helps by reversal in an income tax charge. Net income moved to $47 million from a lose of $3 million in the same quarter a year ago.

But, the company is slowly disappearing. Revenue declined 15% to $935 million. Same-store sales were down almost 9%. The company said: The post-paid wireless business continued to negatively impact both the comparable store and total sales results

It must be that consumers are buying their cellphones somewhere else.

RadioShack’s CEO was quoted as saying "Our improved gross margin rate this quarter reflects some success in increasing the role of the ‘value-added’ products in our mix."

But, he neglected to say that gross margins won’t mean much if the company keeps shrinking this fast.

Douglas A. McIntyre

Photo of Douglas A. McIntyre
About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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