RadioShack Corp.'s quarterly profit fell on weakness in its T-Mobile business and higher costs, prompting the U.S. consumer electronics chain to cut its full-year profit outlook.
RadioShack, which in February alleged that T-Mobile had "materially breached" its contract with the retailer, said on Monday that it continues to "work closely" with T-Mobile to resolve the issues.
The discussions have been "constructive" and RadioShack expects the matter to be resolved, it said in a statement.
The Fort Worth, Tex.-based chain forecast 2011 profit of $1.60 to $1.80 a share, down from its prior outlook of $1.60 to $1.90.
In the first quarter, it earned $35.1-million, or 33 cents a share, down from $50.1-million, or 39 cents a share, a year earlier.
The chain saw higher costs in the quarter related to the roll-out of its wireless kiosks in Target Corp. stores. Results also included costs of 2 cents a share associated with the early retirement of debt.
Sales rose 2.1 per cent to $1.06-billion, missing analysts' average estimate of $1.07-billion. (Reporting by Dhanya Skariachan, editing by Maureen Bavdek and John Wallace)Report Typo/Error
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