After one day frozen, the stock price of Franklin Wireless Corporation (OTC:FKWL) started falling down again. Yesterday, it 
decreased by 13.17%, while traded volume of FKWL flew up.
As Franklin has not released any news on its activities recently, only one explanation on the price fall can be found. It’s the latest financial report of the company.
On Wednesday, FKWL reported its annual results for Fiscal 2011, which however, were rather disappointing.
According to the 10-K, the company has experienced a significant decrease in revenues this year, as well as in its cash and cash equivalents. Also, operating expenses jumped up, while liabilities haven’t been covered.
Despite the optimistic statements for the future, even OC Kim, president of Franklin, pointed out the obvious decrease in their net sales and revenues, which negatively affected price and volume of FKWL.[BANNER]
The management themselves expect continued weakness in revenues for the first and second quarters of fiscal 2012. Though, the team believe they will be able to fund the future cash requirements for operations from their cash available, operating cash flows, bank lines of credit and issuance of equity securities for the next twelve months.
Apparently, the company relies much more on additional financing, than on the possibility to make a higher profit.
