RadioShack needs to stop the bleeding. The electronics retailer said its first-quarter profit dropped 85 percent on disappointing sales of cellular phones and a write-down of assets and inventory. The company earned $8.4 million, or 6 cents per share, for the quarter ended March 31, compared with $55 million, or 34 cents per share, a year earlier. A big part of the problem is the fact that RadioShack stopped selling Verizon Wireless phones and service plans and switched to Cingular Wireless. RadioShack executives have said they had difficulty notifying consumers about the the Cingular offerings. What's perplexing, however, is that Cingular said its national distribution agreement with RadioShack "reflected" the carrier's 1.7 million net adds in the first quarter. Of course, the word "reflect" can have many different interpretations.
For more about RadioShack's Q1 results:
- read this article from AP