Sprint Nextel drags on RadioShack results

RadioShack Corp. shares appeared relatively stable, jumping nearly 3% to $20.99, after the company reported a net income of $46.3 million for the third quarter. In the year-ago period the company reported a loss of $16.3 million.
The company reported a substantial total sales decline of 9.4% largely due to the “continuing negative sales trend in the Sprint postpaid wireless and related wireless accessory businesses.” The company added that it has experienced a significantly improved performance in both prepaid wireless phones and global positioning systems.
“We are pleased to announce the continuation of improved financial results in the third quarter,” Chairman and CEO Julian Day said. “We continue to face challenges at the top line in our business, mainly as a result of well publicized developments in postpaid wireless related to Sprint. We are addressing those challenges energetically and hope that having configured the business for increased profitability; we will now prove successful in configuring it for growth.”
RadioShack is a Sprint Nextel Corp. reseller. Sprint Nextel recently announced major customer losses for the third quarter.