Franklin Wireless Corp. announced financial results for the second quarter ended December 31, 2011. The company reported net sales of $3.0 million, compared with $15.6 million in net sales for the corresponding period of 2010. The company reported a net loss of approximately $0.488 million, or $0.04 per basic and diluted share, compared with net income of $2.0 million, or $0.17 per basic and diluted share, for the same quarter last year. The decrease in net sales year-over-year was due to several factors including increased competition in the dual-mode (3G and 4G) USB modem market, as well as competition from other similar products, which negatively affected volume and price. Net sales were also affected by delays in launching new products due to longer than expected schedules associated with design, testing and certification efforts. In addition, net sales in the South American and Latin American regions were down significantly due to timing of orders placed by a relatively small number of customers as well as the fact that some carrier customers are transitioning from CDMA to LTE or HSPA+ networks, which affected the quantity of CDMA related products sold during the second quarter of fiscal 2012. The company expects that revenues will continue to be weak in the third quarter of fiscal 2012, as the transition to new 4G technologies including LTE, but is expected to ramp up in the fourth quarter of the fiscal year, driven primarily by planned new product roll-outs.