Friday, global infomercial product distributor, International Commercial Television, Inc. made several announcements regarding its 2008 financial results.
Today, ICTV is expected to release its 2008 10-K, which will reflect net sales of $15,371,000 and a pre-tax loss of $3,156,000 for the year ending December 31, 2008. The company will also restate the financial statements for the year ending December 31, 2007; the restated results include net sales of $8,488,000 and a $1,082,000 pre-tax loss.
Over the past year, ICTV’s net sales increased due to the expansion of its direct response television (DRTV) and televised shopping sales channels in the United States for its DermaWand product. However, the company also revealed that the expanded investment in the DRTV channel generated greater losses than anticipated due to higher levels of customer returns and bad debt. Additionally, the sales and net profits projected for the retail launch (designed to offset the DRTV losses) did not follow through due to the 2008 downturn of the U.S. economy.
During September 2008, the company moved its domestic warehousing, shipping, and customer service facilities from Wisconsin to California in preparation for planned business growth. ICTV also developed additional operating infrastructure and established an Operations Office in Wayne, Pennsylvania.