Loss in gross profit @ Tefron

25 May '10

2 min read

Tefron Ltd announced financial results for the first quarter of 2010. Tefron reported revenues for the first quarter of 2010 of $25.8 million. This compares with revenues of $22.3 million in the fourth quarter of 2009 and $47 million in the first quarter of 2009. The Company reported a gross profit in the first quarter of $0.9 million, compared with a gross loss of $2.16 million in the fourth quarter of 2009 and a gross profit of $5.5 million in the first quarter of 2009.

Operating loss for the first quarter of 2010 was $3.6 million, compared with an operating loss of $5.6 million for the fourth quarter of 2009 and an operating loss of $0.3 million in the first quarter of 2009. Net loss for the first quarter of 2010 was $3.3 million, equivalent to a loss of $1.5 per diluted share, compared with net loss of $4.7 million in the prior fourth quarter, or a loss of $2.2 per diluted share, and net income of $0.1 million in the first quarter of 2009, equivalent to earnings per diluted share of $0.1.

Commenting on the results, CEO Amit Meridor, said, "In the first quarter we successfully completed the financial restructuring of Tefron culminating in the agreement with the banks on March 2, 2010 and the rights issue at the end of the quarter on March 25, 2010. The sales and operational results reported today met the targets we presented to the Board of Directors in our budget. We are pleased that having achieved these results, we can now focus on the next stage of the turnaround program with the implementation of stricter quality control, enhanced manufacturing effectiveness and efficiency and more consistent, dependable customer service."

Tefron manufactures boutique-quality everyday seamless intimate apparel, active wear and swimwear sold throughout the world by such name-brand marketers as Victoria's Secret, Nike, The Gap, J.C. Penney, Wall-Mart, lululemon Athletica, Calvin Klein, Maidenform, Patagonia, Reebok, , and El Corte Englese, as well as other well known retailers and designer labels. The company's product line includes knitted briefs, bras, tank tops, boxers, leggings, crop, T-shirts, nightwear, bodysuits, swimwear, beach wear and active-wear.

Tefron Ltd

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