Radio Shack Corp. (NYSE: RSH) reported net quarterly income of $46.3 million this morning ($0.34 per share) compared to a year-ago net loss of $16.3 million ($0.12 per share) as the company continued digging itself out of a hole under new CEO Julian Day. It was good to see the gadget and accessory retailer reverse its 2006 loss from the same quarter a year ago, but the revenue numbers didn't do as well. The retailer saw a 9.4% decline in its most recent quarter, to the tune of just over $960 million as same-store sales fell 8.6% from the year-ago quarter.

In other words, the cuts and restructuring Day has put in place -- which were sorely needed -- seemed to have worked in the latest quarter, although sales slumped pretty badly. It's been said that any competent CEO can slash costs and tell his or her troops to find cuts, but only the long-term leader can take the reins when that ends and grow sales and revenue beyond the cost-cutting stage. Day has not had enough time to really progress that far, but his number is coming up soon.

Analyst estimates were for a $990 million quarter with an EPS of $0.26, so the retailer did beat earnings estimates for the quarter (though not revenue estimates). An interesting factoid for the retailer's just-completed quarter: gross margin improved to 51% while selling, general and administrative expenses declined 13%. Now, that is cost cutting if I've ever seen it. Still, Day referenced the retailer's weakness in gaining commissions on post-paid wireless customers. Radio Shack still relies on cellular sales as a large part of its business, in my opinion. Is the company a retailer or a wireless reseller? Estimates peg about 15% of revenue at Radio Shack coming from wireless sales (specifically, those from Sprint Nextel). That's almost a fifth -- and way too large for comfort when a retailer is joined at the hip of a cellular carrier that's having severe ups and downs.

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