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Cygne Designs announces results for year 2006
02 May '07
3 min read
Cygne Designs Inc announced results of operations for the year ended January 31, 2007.
For the year ended January 31, 2007, net sales increased by $60.4 million, or 103%, to $118.8 million compared to $58.4 million for the prior year. Of this increase in sales, $73.2 million resulted from Cygne's acquisition of the branded and private label denim business of Diversified Apparel Resources LLC (DAR) on July 31, 2005 and its acquisition of the private label division of Innovo Group Inc.
on May 12, 2006. The increase in sales was partially offset by decreased non-denim sales of $12.8 million, as the customer for these products sourced most of the goods it had previously sourced through Cygne in the Far East.
Gross profit for the year ended January 31, 2007 increased to $25.5 million compared to $12.1 million for the prior year. Gross margins increased to 21.4% compared to 20.7% for the prior year as a result of higher gross margins on sales stemming from product purchases primarily sourced through a Supply Agreement with DAR, a related party.
The Company recorded a net loss of $158,000 or $0.01 loss per share on a basic and diluted share basis for the year ended January 31, 2007 as compared to a net loss of $6.2 million or $0.34 per share on a basic and diluted share basis for the prior year.
The net loss of $158,000 for the year ended January 31, 2007 included expenses of $4.2 million for the amortization of intangible assets attributable to Cygne's acquisitions and amortization of the debt discount on its secured subordinated promissory note and $1.7 million for the provision for deferred income taxes.
For the year ended January 31, 2007, net sales increased by $60.4 million, or 103%, to $118.8 million compared to $58.4 million for the prior year. Of this increase in sales, $73.2 million resulted from Cygne's acquisition of the branded and private label denim business of Diversified Apparel Resources LLC (DAR) on July 31, 2005 and its acquisition of the private label division of Innovo Group Inc.
on May 12, 2006. The increase in sales was partially offset by decreased non-denim sales of $12.8 million, as the customer for these products sourced most of the goods it had previously sourced through Cygne in the Far East.
Gross profit for the year ended January 31, 2007 increased to $25.5 million compared to $12.1 million for the prior year. Gross margins increased to 21.4% compared to 20.7% for the prior year as a result of higher gross margins on sales stemming from product purchases primarily sourced through a Supply Agreement with DAR, a related party.
The Company recorded a net loss of $158,000 or $0.01 loss per share on a basic and diluted share basis for the year ended January 31, 2007 as compared to a net loss of $6.2 million or $0.34 per share on a basic and diluted share basis for the prior year.
The net loss of $158,000 for the year ended January 31, 2007 included expenses of $4.2 million for the amortization of intangible assets attributable to Cygne's acquisitions and amortization of the debt discount on its secured subordinated promissory note and $1.7 million for the provision for deferred income taxes.
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