Heelys posts 2nd-quarter profit on lower costs, but revenue slips

Heelys posts 2Q profit on lower costs, sales slip

DALLAS — Heelys Inc. swung to a profit in its second quarter on lower costs, although net revenue slipped 29 percent for the maker of wheeled footwear for the youth market.

The company earned $473,000, or 2 cents per share, in the three-month period ended June 30. In the same period last year, the company lost $1.6 million, or 6 cents per share.

Revenue fell to $8.8 million from $12.4 million last year, the company said late Thursday.

Profits improved as expenses fell. The company also endured litigation costs in the second quarter of last year related to shareholder lawsuits over the company’s initial public offering.

This year’s second quarter also includes the settlement in April of a potential patent and trademark lawsuit in Heelys favor for $750,000.

CEO Tom Hansen said retailers are wary of stocking up their inventory because of worries about continued economic weakness. He said the company continues to look at ways to cut costs.

Shares of Heelys, based in Dallas, fell 7 cents to close at $2.63 on Thursday.