LOS ANGELES, June 12, 2008 (PRIME NEWSWIRE) -- Signature Eyewear, Inc. (OTCBB:SEYE) reported its financial results for the second quarter ended April 30, 2008. The Company recorded a net sales increase compared to the second quarter of 2007 and has achieved 14 consecutive quarters of profitability.
Net sales were $6.7 million for the second fiscal quarter of 2008, compared to net sales of $6.5 million for the 2007 quarter. The increase was due to continued growth in the Company's three best-selling lines: bebe eyes, Nicole Miller Eyewear and Laura Ashley Eyewear.
Operating income was $284,000 for the quarter, compared to operating income of $393,000 for the 2007 quarter. This decline was due to a decrease in the gross margin, as the Company's average cost of frames increased due to higher cost of labor at the Company's offshore manufacturers and increased cost of raw materials and freight.
Net income was $212,000 for the quarter, compared to net income of $514,000 for the same quarter in 2007. The Company realized an income tax benefit of $254,000 in the 2007 quarter, which resulted from a decrease in the valuation allowance on the Company's deferred tax asset; the Company did not realize an income tax benefit in the 2008 quarter. The decrease in net income also was due to a $146,000 increase in selling expenses for the 2008 quarter.
For the six months ended April 30, 2008, the Company had net income of $362,000 on net sales of $12.2 million, compared to net income of $668,000 on net sales of $12.4 million for the six months ended April 30, 2007. The income tax benefit of $330,000 favorably impacted the first six months of 2007 compared to 2008.
"Our sales in the second quarter reflect the continued strong performance of our best-selling eyewear lines, bebe eyes, Nicole Miller Eyewear and Laura Ashley Eyewear, which have maintained critical market presence," noted Michael Prince, CEO of Signature Eyewear. "However, the general slowdown in the domestic economy and the optical frame market in particular have affected our operating results," added Prince.
The Company launched its Carmen Marc Valvo Eyewear collection in May 2008. This collection was voted the best new product at the international Vision Expo in April 2008.
The Company continues to reduce its long-term debt (including current portion), which decreased by $193,000 from October 31, 2007 to April 30, 2008. "We are pleased to see the sustained reduction of our long-term debt which, coupled with declining market interest rates, reduced our interest expense by more than $60,000 for the quarter and $100,000 for the six months," Prince said. "As a result of our net earnings and the proceeds from the exercise of warrants, our shareholders' equity increased from $200,000 at October 31, 2007 to $629,000 at April 30, 2008."
About Signature Eyewear
Signature Eyewear is a leading designer and marketer of prescription eyeglass frames and sunglasses under internationally recognized brand names, including bebe eyes, Cutter & Buck Eyewear, Dakota Smith Eyewear, Hart Schaffner Marx Eyewear, Hummer Eyegear, Laura Ashley Eyewear, Nicole Miller Eyewear and Carmen Marc Valvo Eyewear, which was introduced in May 2008. Signature Eyewear's products are sold worldwide to opticians, optometrists and ophthalmologists and to major retail chains. For information about Signature Eyewear, visit the Company's website at http://www.seye.com or call 310-330-2700.
The above news release contains forward-looking statements. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Readers are cautioned that any such forward-looking statements are not guarantees of future performance, and are subject to a wide range of business risks, external factors and uncertainties, including increasing market interest rates. Actual results may differ materially from those indicated by such forward-looking statements. For additional information, please consult the Company's most recent public filings and Form 10-K for the year ended October 31, 2007. The Company assumes no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise.