RadioShack Corp reported a higher quarterly profit as the consumer electronics chain benefited from higher postpaid wireless sales and the launch of key products like Apple's iPhone 4.
The company, long speculated to be a takeover target, has shifted its focus to sales of wireless phones and related services to offset tepid demand for products like TV converter boxes, videogame systems and batteries.
The Fort Worth, Texas-based chain's second-quarter net profit rose to $53 million, or 41 cents a share, from $48.8 million, or 39 cents a share, a year earlier.
Analysts on average were expecting earnings of 41 cents a share, according to Thomson Reuters I/B/E/S.
Net sales rose 4.7 percent to $1.01 billion, while analysts expected $1.02 billion.
Sales at company-operated stores and kiosks open at least a year rose 6.7 percent, driven by higher postpaid wireless sales, the addition of T-Mobile as a postpaid wireless carrier and higher sales of prepaid wireless handsets and air time.
RadioShack, which recently completed a pilot program of wireless kiosks inside Target stores, said it planned to roll out kiosks in most of the discounter's locations by mid-2011.
The related mobile service, named Bullseye Mobile after Target's logo, will begin rolling out at select stores by mid-August.
RadioShack raised its marketing spending in the quarter to boost sales.
The company has 4,680 company-operated stores in the United States and Mexico, more than 530 wireless phone kiosks in the United States and about 1,300 dealer outlets worldwide.
RadioShack shares have gotten a boost from takeover speculation, rising nearly 38 percent over the past year, as it repositioned itself.
(Reporting by Dhanya Skariachan; Editing by Lisa Von Ahn)