SAN CLEMENTE, Calif., June 5, 2012 /PRNewswire/ -- ePunk, Inc. (PINK SHEETS: PUNK), a distributor of power sports products, accessories and related services through CountyImports.com, today announced financial results for the first quarter ended December 31, 2011, as filed late, on May 31, 2012, with the Securities and Exchange Commission. The Company added that it will be filing results for the second quarter ended March 31, 2012 as soon as practicable.
For the first quarter ended December 31, 2011, revenues were $226,706, an increase of approximately 53% from $148,298 for the fourth quarter ended September 30, 2011. Cost of sales was $192,164 compared to $128,769 for the previous quarter. Gross profit was $34,542 compared to $19,528 for the previous quarter with gross margins of 15.2% and 13.1%, respectively.
Net loss for the first quarter was $90,583, or $0.00 per diluted share compared to a net loss of $76,133, or $0.00 per diluted share for the previous quarter.
Jesse Gonzales, CEO of ePunk, stated that, "We are pleased to report improving financial performance for the first quarter. We expect to bring our financial reports to current status in June, reporting results for the second fiscal quarter ended March 31, having undertaken administrative measures to ensure that ePunk will remain current in its reporting status going forward. We are committed to maintaining transparency with our shareholders and to maximizing shareholder value in our pursuit of becoming a leading distributor to the North American power sports marketplace."
In February, the Company announced plans to assume administrative duties relating to financing processing, which had previously been outsourced to a third party. This transition is now complete and management expects the impact to be materially positive to its financial results going forward, accelerating its path to profitability and overall margin expansion.
ePunk's primary focus during 2012 is to increase consumer traffic to its www.CountyImports.com website where they will benefit from better service, superior products and more competitive pricing. Management believes this will result in greater customer loyalty and repeat business, and is core to its commitment in driving revenue growth and shareholder value.
The business remains on track to launch BidPunk.com, a power sports penny auction with tremendous synergy to its CountyImports online business, as well as its brick-and-mortar shop based in Dana Point, California, PCH Rides. "Through the development and expansion of these businesses, we intend to add products and services to our mix, creating greater appeal and value to our customers. We will remain dedicated in our product development and offering to creating superior performing products unmatched in the marketplace at prices that are affordable for consumers in an economic environment which remains challenging," Gonzales added.
Based in Dana Point, California, ePunk, Inc. is a leading distributor, which through its County Imports brand, offers competitively priced power sports products serving North American to consumers online and through its brick-and-mortar location based in Southern California. For more information about ePunk, or any of its online businesses: www.BidPunk.com, www.CountyImports.com, www.CountyImportParts.com, www.CountyCruisers.com, www.PCHRides.com, www.ViperSportUSA.com; or PCH Rides, go to www.ePunkinc.com.Forward-Looking Statements
This release contains forward-looking statements, including, without limitation, statements concerning our business and possible or assumed future results of operations. Our actual results could differ materially from those anticipated in the forward-looking statements for many reasons including: our ability to continue as a going concern, adverse economic changes affecting markets we serve; competition in our markets and industry segments; our timing and the profitability of entering new markets; greater than expected costs, customer acceptance of our products or difficulties related to our integration of the businesses we may acquire; and other risks and uncertainties as may be detailed from time to time in our public announcements and SEC filings. Although we believe the expectations reflected in the forward-looking statements are reasonable, they relate only to events as of the date on which the statements are made, and our future results, levels of activity, performance or achievements may not meet these expectations. We do not intend to update any of the forward-looking statements after the date of this document to conform these statements to actual results or to changes in our expectations, except as required by law. There is no assurance that a definitive agreement will be completed.
SOURCE ePunk, Inc.