Tag-It Pacific Inc, owner of Talon zippers and a full service outsourced trim management supplier for manufacturers of fashion apparel, announced financial results for the company's second quarter and six-month period ended June 30th 2006.
For the three months ended June 30th 2006 the company reported net income of $655,000, or $0.04 per share, as compared to a net loss for the same period in 2005 of $12,476,000, or $0.68 per share.
"The quarter's net income results are very encouraging and represent an important turning point for the company," said Stephen Forte, the company's CEO.
"Our strategic concentration on growing the business through quality, profitable sales, expanding our customer base and continuing to focus on lowering costs is principally responsible for the positive performance," Forte said.
The net income for the quarter includes a $46,000 non-cash compensation charge for employee stock options in accordance with FAS 123R which was adopted by the company in 2006.
For the six months ended June 30th 2006 the company reported a net loss of $74,000, or $0.00 per share, as compared to a net loss for the first six months of 2005 of $14,125,100, or $0.78 per share. The FAS 123R charge included in earnings for the six-months ended June 30th 2006 was $165,000.
Sales for the three months ended June 30th 2006 were $14,246,000 as compared to sales of $15,640,000 for the same quarter in 2005. The decline in sales for the quarter is principally the result of the elimination of lower-margin sales activities in Mexico and Central America that were discontinued in the fourth quarter of 2005. Despite the lower volumes, gross profit for the three months ended June 30th 2006 increased over the same period in 2005 by $3.4 million as the Company eliminated substantial operating and manufacturing costs, avoided excess inventory and obsolescence costs, and improved its overall margin on sales.
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