WASHINGTON—Shares of InPhonic Inc. continued their yearlong slide after the online retailer of mobile phones and services reported a nearly $25 million fourth-quarter loss despite increased sales.
The company reported $85.2 million in revenue during the quarter, nearly doubling the $48.7 million in revenue during the year-ago period. And InPhonic more than doubled its annual revenue, reporting $320.5 million for the year ending Dec. 31, 2005, compared with $154.9 million in 2004.
But substantial one-time charges and higher operating costs offset the quarterly sales growth. After paying preferred dividends, InPhonic lost $24.6 million, or 69 cents a share, during the quarter; the company reported a loss of $7.9 million, or 37 cents a share, during the same period in 2004.
Shares plummeted on the news, sinking to a 52-week low of $5.02 before rebounding slightly to $6.04, down 24 percent from Tuesday’s close. The Nasdaq-listed stock has steadily lost ground after trading as high as $25.04 per share early last year.
Deutsche Securities downgraded InPhonic from buy to hold following the report.
For the year, InPhonic’s loss grew to $38.2 million from $32.3 million in 2004. The recent quarter included $10.3 million in costs related to the sale of Liberty Wireless and other streamlining efforts.
“Our fourth-quarter and full-year results were disappointing and came in below our expectations,” said David Steinberg, InPhonic’s chief executive officer. “With the sale of Liberty Wireless behind us, we will better be able to focus our attention on achieving profitability.”
