Oct. 26--FORT WORTH -- RadioShack's third quarter profits were down 24 percent from the same period in 2008, the electronics retailer reported Monday, but the company's chairman sees promise in a pair of recent changes.

The Fort Worth company's net income totaled $37.4 million, or 30 cents a share, down from $49.1 million, or 38 cents per share for the quarter that ended Sept. 30, 2008. Revenue were $990 million. In comparison a survey of analysts by Thomson Reuters showed consensus expectation of 31 cents a share net profit on $962 million in revenue. Sales at stores open at least a year also outperformed analysts' estimates.

Analysts had cautioned that while the company was benefitting from the sale of high-definition television converter boxes, job cuts and other cost savings, the benefits would fade, and challenged RadioShack to build on its momentum.

"Two key strategic efforts continue to be primary areas of focus for the organization," Julian Day, chairman and chief executive officer, said in a Monday statement. "First, the launch of the 'THE SHACK' brand platform was a success, and we will continue to refine and invest in this positioning."

RadioShack in August launched a rebranding effort aimed at updating consumers' perceptions of the brand. It also announced that it would sponsor Texas cyclist Lance Armstrong's team.

"Second, the introduction of T-Mobile in our company-operated stores and Verizon Wireless in our Sam's Club Kiosks further enhances our mobility proposition," Day said. "Together with AT&T and Sprint, we now offer a broader range of choices to fit consumers' needs."

Jim Gooch, executive vice president and chief financial officer noted improved performance in the latter part of the quarter propelled by the "strong" mobility business. Gooch also noted that the economy showed some signs of potential stabilization.

Total third quarter net sales and operating revenues dropped $31.9 million to $990 million, down from $1,021 billion for the same period in 2008. Comparable same-store sales at company-operated stores and kiosks for the first nine months of 2009 fell 0.7 percent from 2008, due to declines in wireless accessory, GPS preduct, digital music player and camera sales.

The company said the decline was somewhat offset by revenue from Sprint Nextel wireless business and sales of netbook computers, prepaid wireless handsets and airtime.

RadioShack continued to stockpile cash, with $856 million at the end of the third quarter this year, compared to $824 million at the same time in 2008.

The company's shares (ticker: RSH) were up about 15 percent at mid-day.

"With sales improvements in the core business and (the) addition of T-Mobile, we continue to believe RSH has a very favorable risk/reward profile," said RBC Capital Markets analyst Scot Ciccarelli in a note to clients.

This report contains material from the Dow Jones Newswires.

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