Jones Soda Spews (JSDA)

Jones Soda (JSDA-NASDAQ) looks like someone shook up a carbonated can of shareholders and spewed it out all over the floor.  The metrics sound good on a comparable basis to the past, but they won’t please Wall Street:

Total case sales of 1,722,000 cases (288 ounce equivalent) compared to 592,000 cases a year ago; Revenue increased 4.9% to $9.2 million compared to $8.8 million a year ago; Gross margin increased to 38.3% versus 35.6% last year; Diluted earnings per share were $0.00 compared to $0.00 a year ago.

Wall Street was expecting closer to $13 million revenues and $0.03 EPS, although we haven’t heard all the issues for comparable data on estimates yet.

The company said that it worked hard to prepare for the full launch of our Jones Soda 12-ounce cans while at the same time increase the penetration of our bottled business at retail. Sales of 1,124,000 cases (288 ounce equivalent) of concentrate during the quarter contributed to meaningful gross margin expansion. But the expansion was offset by additional investments in infrastructure, primarily sales personnel and increased compliance costs (Audit and Sarbanes Oxley) to support expansion plans coupled with several new promotional programs.

Cramer probably wishes right now on the initial reaction that he didn’t call this one the next Hansen Natural…..Shares are down almost 20% to $20.25 in after-hours today.

Until the company has its conference call with guidance, consider this stock move as pending or not yet known.

Jon C. Ogg
May 3, 2007

Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.