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Heelys Narrows 4th-quarter Loss

The Associated Press

DALLAS (AP) — Heelys Inc., which makes wheeled shoes, said Tuesday that its fourth-quarter loss narrowed this year, though demand remained weaker than the company expected in the U.S. and abroad.

The company's loss for the three months that ended Dec. 31 was $5.2 million, or 19 cents per share, compared with a loss of $5.9 million, or 22 cents per share, a year earlier.

Revenue rose 59 percent to $15.6 million from $9.8 million a year ago.

Although revenue rose, demand for the company's products has fallen since 2006, when fourth-quarter sales totaled $71 million, and the company expected demand to be higher domestically and abroad in the fourth quarter.

For the year, the company lost $5.9 million, or 22 cents per share, compared with a profit of 21.9 million, or 78 cents per share last year.

Separately, the company said it reached a proposed settlement in pending lawsuits related to its initial public offering. It expects to pay about $722,000, which it included in its fourth-quarter results, with insurance policies funding the rest of the payment.

Shares fell 16 cents, or 9.4 percent, to $1.55 during aftermarket trading.