NEW YORK (AP) — Shares of Acorn International slumped 8 percent after the Chinese marketing company posted a first-quarter loss on tumbling mobile phone sales.
For the three months ended March 31, the company said it lost $2.3 million, or 8 cents per share. That's compared with a profit of $880,400, or 3 cents per share, in the year-ago quarter.
Net revenues for the quarter fell 19 percent to $68.1 million.
Gross profit fell to $30.7 million, from $37 million.
Mobile phones sales dropped 58 percent from the year-ago quarter to $16.6 million. That was 24 percent of total revenues in the quarter. Acorn said the drop-off in sales of existing models of phones also delayed the launch of new phones.
The company noted that it plans to introduce two smart phone models in the second quarter.
The company is testing several new fitness products, said CEO Don Yang, and it will also introduce new cosmetics and electronic learning products in the second and third quarters.
For the full year, the company affirmed its guidance for revenues between $380 million and $400 million and net income between $6 million and $8 million.
Shares of Acorn International Inc., based in Shanghai, fell 32 cents to $3.80 in afternoon trading.