Home / Knowledge / News / Textiles / Hirsch Intl reduces operating expenses
Hirsch Intl reduces operating expenses
18
Nov '08
Hirsch International Corp. announced financial results for the third quarter ended September 30, 2008.

For the third quarter of 2008, net sales were $10.6 million, compared to $11.9 million in the third quarter of 2007. Net loss in the third quarter of 2008 was $2.0 million, or $0.21 per diluted share, compared to a net loss of $119,000, or $0.01 per diluted share, in the prior year.

Gross profit for the third quarter of 2008 was $3.2 million, or 30% of net sales, compared to $4.5 million, or 38% of net sales, in the third quarter of 2007 and operating expenses were $5.2 million versus $4.7 million in the prior year period.

For the nine-month period ended September 30, 2008, net sales were $32.4 million, compared to $38.1 million in the prior year period. The Company reported a net loss of $3.6 million, or $0.38 per diluted share, for the first nine months of 2008, compared to net income for the first nine months of 2007 of $1.5 million, or $0.15 per diluted share.

The three month and nine month results include sales of U.S. Screen of $1.4 million with a net loss of $0.6 million or $0.07 per diluted share. U.S. Screen was acquired on August 4, 2008.

Paul Gallagher, President and CEO of the Company, stated, "Overall economic conditions continued to negatively affect demand for our products for the first three quarters of 2008."

The weakness was most evident in core embroidery product sales which decreased $8 million this year. This decrease was partially offset by continued market penetration of screen and digital print products. In addition to the market weakness, we have seen severe price and margin pressure resulting from the continued weakness in the US dollar as compared to the Japanese Yen. Year-to-date, 44% of our gross margin dollar deterioration was due to lower overall margins resulting from the increased cost of products and severe competitive sales price pressure. The remaining reduction resulted from lower sales volume.”

Mr. Gallagher added, "As a response to the continued weakness in the economy and our customer's reluctance to buy equipment, in September, we completed an overall restructuring and staff reduction that has lowered our annualized level of operating expense by just over $2.5 million while maintaining our high level customer support and market position."

"Today our people are more experienced, better trained and managed, and with recent investments in systems and technology, well equipped to service the marketplace and support our broad customer base. We expect to benefit later this year and into 2009 from both our continued growth in non-embroidery products and the reduced overhead resulting from the restructuring. Meanwhile, we believe that our strong balance sheet puts us in a good position to get through the current economic crisis. However, we are unable to predict the severity or length of the current economic conditionsor their impact on our customers.”


Must ReadView All

EU, Japan finalise Economic Partnership Agreement

Textiles | On 18th Dec 2017

EU, Japan finalise Economic Partnership Agreement

Building on the political agreement reached in principle during the...

WTO, ITC launch cotton portal to enhance transparency

Textiles | On 18th Dec 2017

WTO, ITC launch cotton portal to enhance transparency

The World Trade Organisation (WTO) and the International Trade Centre ...

India much behind China in containerised cargo capacity

Textiles | On 18th Dec 2017

India much behind China in containerised cargo capacity

India’s total containerised cargo capacity of 8.75 million...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Rahul Bhadani
Looksgud

Navigating through catalogues is a bit hasslesome

Mandeep Nagi
Shades of India

Women value something that is unique and has a flavour of India

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Sugandha Bhardwaj

<div>New Delhi-based Brinjal Designs Pvt Ltd manufactures home furnishing...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Kai Poehler
Voith Paper GmbH & Co. KG

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

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Amiben Shroff
Shrujan

From its modest beginning in the late 1960s, Shrujan has grown into a...

Rupa Sood and Sharan Apparao
Nayaab

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

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

December 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

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.1%
No
13.8%
Skip
18.1%

Total Votes: 94

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

Yes No

Active Poll

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

Yes
62.8%
No
29.8%
Skip
7.4%

Total Votes: 94

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

Yes No

Active Poll

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

Yes
87.2%
No
9.6%
Skip
3.2%

Total Votes: 94

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

Active Poll

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

Yes
81.9%
No
8.5%
Skip
9.6%

Total Votes: 94


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