Home / Knowledge / News / Textiles / Gross profit margin improves to 37.3% at Hirsch
Gross profit margin improves to 37.3% at Hirsch
12
Aug '08
Hirsch International Corp, the leading provider of advanced embroidery, screen-printing, textile laser systems, and digital printing and services to the North American graphic and decorated apparel marketplace, reports its financial results for the second quarter ended June 30, 2008.

Hirsch's net loss for the quarter ended June 30, 2008 was $1.0 million or $0.11 per diluted share. This compares to net income of $0.76 million or $0.08 per diluted share for the prior year quarter.

“It is evident that we are operating in a difficult economic environment with declining consumer confidence. Beginning in 2007 and continuing in 2008 we have seen overall weakness in capital expenditures throughout the graphic and decorated apparel industry.

During the first half of 2008, we experienced a 31% decrease in revenue in our legacy embroidery segment over last year's first half,” said Paul Gallagher, President and Chief Executive Officer of Hirsch International.

“On a more positive note, sales of textile laser, screen printing, and digital printing equipment, all new products added over the past two years, have increased 30% over the same six months compared to last year.”

“Additional pressure has resulted from the continued weakness in the US dollar as compared to the currencies in the countries where our equipment is produced, on both market prices and profit margins.

The overall effect to our bottom-line results is disappointing and unacceptable and while our results do reflect overall industry pressures and weaker economic conditions, our Company is addressing the challenges head-on and adjusting our near-term strategic direction.”

“Subsequent to the second quarter, on August 4th, 2008, Hirsch acquired 80% of the outstanding equity interest in U.S. Screen Print and Inkjet Technology (“U. S. Screen”). U.S. Screen has a global presence with revenues of approximately $18 million in 2007 and is headquartered in Tempe, AZ.

For twenty-nine years, U. S. Screen has provided the decorated and graphic apparel industry with a wide range of educational services, software and supplies and over the past four years designed and produced the worldwide industry leading digital inkjet garment printer.

As part of the acquisition, a wholly owned subsidiary of Hirsch will also provide working capital for the expansion of U.S. Screen Print and Inkjet Technology's business.”

Mr. Gallagher concluded, “Our balance sheet and liquidity position are solid, and we are committed to keeping them that way. We will continue to stay focused on this mission with the best interests of our shareholders always at the forefront of our efforts.”

Revenues for the three months ended June 30, 2008, were $10.2 million, a decrease of $2.0 million, or 16.4%, compared to revenue of $12.2 million for the three months ended June 30, 2007.

The decrease in sales for the three months ended June 30, 2008, is primarily attributable to a $2.6 million decrease in new embroidery equipment, a $0.1 million decrease in software sales, offset by an increase of $0.2 million from laser equipment, $0.1 million from screen printing equipment, and an increase of $0.4 million from digital printing equipment.


Must ReadView All

Textiles | On 24th Jul 2017

Govt extends deadline for GST composition scheme to Aug 16

The Government on India has extended the deadline for small...

L-R: Dhanapal, JMD, Best Corporation; Prabhu Damodaran, Convenor, ITF; Narayanasamy, MD, Micro Cotspin; Senthilnathan, MD Rasitex India; and Sabapathy, MD, Prasanna Spinning Mills

Textiles | On 24th Jul 2017

TN mills seek partnership with cotton growing states

Spinning mills in Tamil Nadu are seeking stronger partnership with...

Textiles | On 24th Jul 2017

Irani terms GST as a ‘great step towards transparency’

Union textiles minister Smriti Irani has termed the Goods and...

Interviews View All

Sanjay Yagnik
Maa Tex Speciality

‘We suggest reducing dosage of sizing chemicals to reduce sludge...

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Asim Dalal
Indo Count Retail Ventures

Today, there is no other emerging market as India, "we make in India and...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Rupa Sood and Sharan Apparao
Nayaab

Nayaab, an exhibition meant to celebrate Indian weaves, is in its second...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

July 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Thanks for your valuable feedback. Claim your free latest sustainability e-book.


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search



X