Ah, remember last year's wireless revolution, when mobile camera phones were the rage? Will RadioShack (NYSE:RSH) ever live it down? The company reported a pretty steep drop in quarterly earnings today. This is nothing new, and it's the culmination of trends that have been a cause of concern for quite some time.

RadioShack's second-quarter numbers included a 23% drop in profit to $52.3 million, or $0.33 per diluted share. Total sales increased 4% to $1.09 billion, with same-store sales down 1%.

RadioShack's stash of cash fell 42% to $255 million on a year-over-year basis. Inventory increased by 14% to $972 million, with the company blaming lower-than-projected sales for half the increase, as well as build-out of its inventory for its growth-oriented kiosk initiative. Speaking of the kiosk initiative, the company also said that a 7% increase in SG&A expenses was related to the new plan.

When it comes to the dwindling sales figures, the major culprit is a downturn in the company's wireless sales, which bolstered RadioShack last year by a long shot. If you recall, snazzy new cell phones with built-in cameras were all the rage with consumers at that time, but it seems as though people have cooled their jets when it comes to upgrading their mobiles.

Meanwhile, other problems linger on the landscape, such as a change in its deal with Sprint (NYSE:FON) as well as the fact that many cell phone companies are now distributing their own wares.

As far back as spring 2004, fellow Fool Seth Jayson raised concerns that the wireless party couldn't go on for much longer, as well as the idea that but for the phones, it's traditionally a widget-selling business. Many of us here in Fooldom raised similar concerns over the ensuing months.

There's the big picture as well -- the obvious issue that RadioShack competes against some formidable rivals, such as discounters Wal-Mart (NYSE:WMT) and Target (NYSE:TGT), not to mention electronics rivals Best Buy (NYSE:BBY) and Circuit City (NYSE:CC).

To RadioShack management's credit, it has known for quite some time that it has the challenge ahead to jump-start sales across the board, and it has developed some initiatives to address that challenge. Meanwhile, although RadioShack did say that consumer electronics segment sales increased 18% because of strength in sales of satellite radio products, digital imaging, and MP3 players, clearly there's a long way to go to offset the problems that have come since wireless sales went all wobbly.

Given the stock's recent downward march, some investors might be wondering whether RadioShack is in bargain territory. However, it seems safe to say that investors might need more proof that a turnaround is in the offing before getting into RadioShack.

If you'd like to look over some historical commentary on RadioShack, here's some Foolish content:

Best Buy is a Motley Fool Stock Advisor pick. Talk to other Fools about RadioShack's potential -- or lack thereof -- on our RadioShack discussion board .

Alyce Lomax does not own shares of any of the companies mentioned.