“I may be dating myself but when I was a kid, RadioShack Corporation was the place to be,” New York Shock Exchange writes for Seeking Alpha. “The stores were cool, innovative, and always had the latest gadgets. Fast forward a few decades later and you’ll find an iconic company being squeezed out by the likes of Best Buy, Wal-Mart, and Amazon; RadioShack has been on life support for some time now.”
“For the 13 weeks ended May 3, 2014 the company reported revenue of $737 million, down over 13% from the $848 million reported in the same period a year ago; loss from operations was $334 million,” New York Shock Exchange writes. “The company’s cash on hand was down to $62 million at the end of the quarter due to cash burn gone unabated: ‘For the 13 weeks ended May 3, 2014, RadioShack suffered cash out flows from operations of $38 million. Cash out flows from investing was $10 million. The company’s total cash on hand declined from $110 million to $62 million at the end of the period. Based on its current cash burn from operations of $38 million, RadioShack could potentially run out of cash over the next few quarters.'”
New York Shock Exchange writes, “Yesterday Wedbush Securities cut its price target to $0 per share, citing imminent bankruptcy.”
Read more in the full article here.
MacDailyNews Take: RadioShack lost its way a long time ago and, at this late date, going back to its roots (electronics parts, cables, etc.) is likely too little, too late. Like most people, obviously, we haven’t been in one in years, but from what we can remember, it seemed like a mishmash of bad TVs, radio-controlled cars, cellphones, and an ever-dwindling area of actual electronic parts, boards, solder, etc. Retailers fail when the consumer doesn’t have a clear idea of what a retailer carries and is trying to sell. What exactly is RadioShack’s raison d’être in late mid-late 2014?
One thing’s for sure: When RadioShack goes tits up, Woz will likely shed a few sentimental tears.
Apple’s retail market share grows as RadioShack and Best Buy shrink – March 7, 2014
Beleaguered RadioShack to close up to 1,100 U.S. stores – March 4, 2014
RadioShack cuts $20 off AT&T iPhone 5 models through December 15th – December 5, 2012
Sprint iPhone 4S to hit RadioShack this weekend, 16GB only – November 19, 2011
RadioShack to sell Apple iPhone 3G and 3GS – November 7, 2009
RadioShack CEO: We’re selling all the Apple iPods we can get – October 21, 2005