SOURCE: Signature Eyewear

September 15, 2010 16:15 ET

Signature Eyewear Reports Third Quarter Earnings

LOS ANGELES, CA--(Marketwire - September 15, 2010) -  Signature Eyewear, Inc. (OTCBB: SEYE) 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. 

"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.

About Signature Eyewear

Signature Eyewear is a leading designer and marketer of prescription eyeglass frames and sunglasses under internationally recognized brand names, including Carmen Marc Valvo, Cutter and Buck, Hart Schaffner Marx, Laura Ashley, Michael Stars and Nicole Miller. 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