Signature Eyewear Reports Third Quarter Earnings
Los Angeles, CA - Signature Eyewear, Inc. (OTCBB:SEYE.OB - News) reported net income of $115,000 on net sales of $4.9 million for the quarter ended July 31, 2010. This compares to net income of $155,000 on net sales of $5.9 million for the quarter ended July 31, 2009. This is the company's 19th consecutive profitable quarter.
For the nine months ended July 31, 2010, net income was $415,000 on net sales of $15.9 million, compared net income of $570,000 on net sales of $18.0 million in the comparable period of 2009.
The decrease in net sales was due to the deepening recession and production delays at Signature’s Chinese manufacturers due primarily to labor shortages. These production delays are likely to continue through the next quarter. The decrease in net income was due primarily to lower revenues partially offset by higher gross margin and lower operating expenses and interest expense.
Signature's licenses for bebe and Hummer eyewear expired June 30, 2010. Signature may sell its existing inventory of these lines in the United States through December 31, 2010 and its existing inventory of bebe eyewear internationally through December 31, 2011.
"We are continuing to contain our costs during a very challenging global economy," stated Michael Prince, Chief Executive Officer of Signature. "These efforts, together with the consumer-friendly price structure of our lines, have enabled us to continue to operate profitably and improve our balance sheet in this difficult environment."
"While the loss of these licenses will have a material adverse effect on our revenues, we are actively taking a number of actions designed to boost revenues," explained Michael Prince, Chief Executive Officer of Signature. "These include increasing our marketing and sales efforts of our branded eyewear lines, increasing our efforts to obtain other third party licenses and increasing efforts to develop our proprietary Signature lines. We are also considering the viability of marketing other fashion accessories. In addition, we are taking actions to reduce operating expenses."
The Company has further reduced its debt, from $4.2 million at October 31, 2009, to $3.1 million at July 31, 2010, its lowest level in more than 10 years.
Signature Eyewear is a California public company and is a leading designer and marketer of prescription eyeglass frames and sunglasses under internationally-recognized brand names such as Carmen Marc Valvo, Cutter and Buck, Hart Schaffner Marx, Hummer, Laura Ashley, Michael Stars, and Nicole Miller. Signature Eyewear’s proprietary brands include Dakota Smith Eyewear and The Signature Eyewear Collection. The Company’s products are sold in the United States and internationally to opticians, optometrists and ophthalmologists, optical retail chains, and department stores. For information about Signature Eyewear call 1-800-765-EYES or visit the company's web site at www.seye.com.