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Cygne Designs declares Q1 2007 sales results
18 Jun '07
2 min read
Cygne Designs Inc announced results of operations for the first quarter ended April 30, 2007.
Net sales for the first quarter of 2007 were $20,863,000 a decrease of $32,000 from $20,895,000 net sales for the first quarter of 2006. Of this change in sales, $12,048,000 in sales resulted from Cygne's acquisition of the private label division of Innovo Group Inc. on May 12, 2006 offset by a decrease in sales of $12,080,000 to our mid tier and department store customers.
Gross profit for the first quarter of 2007 was $4,173,000, a decrease of $791,000, or 15.9%, from the gross profit of $4,964,000 for the first quarter of 2006. Gross margins decreased to 20.0% compared to 23.8% in the prior year period as a result of the product mix. Gross margins are guaranteed through a Supply Agreement by product categories for products produced in Mexico by Diversified Apparel, a related party.
The Company recorded a net loss of $1,372,000 or $0.05 loss per share on a basic and diluted share basis for the quarter ended April 30, 2007 as compared to a net loss of $976,000 or $0.04 per share on a basic and diluted share basis for the prior year period.
The net loss of $1,372,000 for the three months ended April 30, 2007 included expenses of $1,201,000 for the amortization of intangible assets attributable to Cygne's acquisitions and amortization of the debt discount on its secured subordinated promissory note and $432,000 for the provision for deferred income taxes.
Net sales for the first quarter of 2007 were $20,863,000 a decrease of $32,000 from $20,895,000 net sales for the first quarter of 2006. Of this change in sales, $12,048,000 in sales resulted from Cygne's acquisition of the private label division of Innovo Group Inc. on May 12, 2006 offset by a decrease in sales of $12,080,000 to our mid tier and department store customers.
Gross profit for the first quarter of 2007 was $4,173,000, a decrease of $791,000, or 15.9%, from the gross profit of $4,964,000 for the first quarter of 2006. Gross margins decreased to 20.0% compared to 23.8% in the prior year period as a result of the product mix. Gross margins are guaranteed through a Supply Agreement by product categories for products produced in Mexico by Diversified Apparel, a related party.
The Company recorded a net loss of $1,372,000 or $0.05 loss per share on a basic and diluted share basis for the quarter ended April 30, 2007 as compared to a net loss of $976,000 or $0.04 per share on a basic and diluted share basis for the prior year period.
The net loss of $1,372,000 for the three months ended April 30, 2007 included expenses of $1,201,000 for the amortization of intangible assets attributable to Cygne's acquisitions and amortization of the debt discount on its secured subordinated promissory note and $432,000 for the provision for deferred income taxes.
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