SOURCE: Signature Eyewear

March 08, 2010 09:00 ET

Signature Eyewear Files 10-Q; Reports 17th Consecutive Profitable Quarter

LOS ANGELES, CA--(Marketwire - March 8, 2010) -  Signature Eyewear, Inc. (OTCBB: SEYE) reported net income of $143,000 on net sales of $5.2 million for the quarter ended January 31, 2010, its 17th consecutive profitable quarter. This compares to net income of $199,000 on net sales of $6.0 million for the quarter ended January 31, 2009.

The decrease in net sales was due primarily to the general slowdown in the domestic economy and the optical frame market, which adversely affected sales of Signature's higher priced eyewear lines. The decrease in net income was due primarily to lower sales and lower gross margin, which was offset somewhat by a decrease in selling, general and administrative expenses. Selling, general and administrative expenses declined $549,000 from the three months ended January 31, 2009 to the three months ended January 31, 2010, representing 58.2% of net sales in the 2010 quarter as compared to 59.8% of net sales in the 2009 quarter.

Gross profit decreased $601,000 from the 2009 Quarter to the 2010 Quarter due to decreased sales. Gross margin decreased slightly to 62.8% in the 2010 Quarter from 64.6% in the 2009 Quarter due to competitive pricing and market conditions.
Selling expenses decreased $233,000 from the 2009 Quarter to the 2010 Quarter primarily due to decreases of $112,000 in compensation expense for sales personnel, $90,000 in travel expense and $88,000 in advertising and promotional expense.
General and administrative expenses for the 2010 Quarter decreased $316,000 from the 2009 Quarter primarily due to decreases of $106,000 in international general and administration expense resulting largely from closing Signature's Belgium sales office in September 2009. 

"We are pleased to have maintained profitability in this recession and its downward pressure on sales by continuing to reduce our operating expenses. Our balance sheet reflects the steps we took last year to reduce inventories and the related current liabilities to weather the current economic environment," stated Michael Prince, Chief Executive Officer of Signature.

About Signature Eyewear

Signature Eyewear is a leading designer and marketer of prescription eyeglass frames and sunglasses under internationally-recognized brand names, including bebe eyewear, Cutter & Buck Eyewear, Carmen Marc Valvo Eyewear, Dakota Smith Eyewear, Hart Schaffner Marx Eyewear, Hummer Eyegear, Laura Ashley Eyewear, Michael Stars Eyewear and Nicole Miller Eyewear. Signature Eyewear's products are sold worldwide to opticians, optometrists and ophthalmologists and to optical and retail chains. For information about Signature Eyewear, visit the Company's website at http://www.seye.com.

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, 2009. 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.

Contact Information

  • FOR FURTHER INFORMATION, CONTACT:
    Devon Blaine
    The Blaine Group
    310/360-1499
    310/360-1498 (FAX)
    Email Contact