Home / Knowledge / News / Textiles / Hirsch International to reduce operating expenses
Hirsch International to reduce operating expenses
Apr '09
Hirsch International Corp. announced financial results for the fourth quarter and year ended December 31, 2008.

For the fourth quarter of 2008, net sales were $10.1 million, compared to $14.5 million in the fourth quarter of 2007. Net loss in the fourth quarter of 2008 was $3.3 million compared to a net income of $0.6 million in the prior year.

Gross profit for the fourth quarter of 2008 was $2.3 million, or 23% of net sales, compared to $5.2 million, or 36% of net sales, in the fourth quarter of 2007 and selling, general and administrative expenses were $4.7 million for both 2008 and 2007. Overall operating expenses for the fourth quarter of 2008 were $5.6 million as compared to $4.7 million in 2007 which, in 2008, included a non-cash impairment charge of $845,000 in U. S. Graphic Arts Inc.'s customer list.

For 2008, net sales were $42.5 million, compared to $52.6 million in 2007. The Company reported a net loss of $6.9 million, or $0.73 per diluted share, for 2008, as compared to net income for 2007 of $2.1 million, or $0.22 per diluted share. The twelve month results include sales of U.S. Graphic's of $4.2 million with a net loss of $2.3 million or $0.24 per diluted share. U.S. Graphics was acquired on August 4, 2008.

Management Comment:
Paul Gallagher, President and CEO of the Company, stated, "The fourth quarter was extraordinarily difficult as our order flow continued to deteriorate. The weakness was most evident in core embroidery product sales which decreased $14 million this year or 38%. This decrease was partially offset by continued market penetration of screen and digital print products, however in addition to the overall market weakness, we also saw severe price and margin pressure resulting from the continued weakness in the U.S. dollar as compared to the Japanese Yen.”

Mr. Gallagher continued, "As business conditions continued to deteriorate during the fourth quarter and into 2009, we have accelerated our cost and expense reduction programs. To date, the Company has initiated actions which it expects will result in annualized cost savings of almost $6 million.

Without a doubt, 2009 will be a very tough year during which we will continue to take actions necessary to return the Company to profitability while continuing to provide the industry with the most innovative and highest quality products and the most advanced customer education and support systems, while taking whatever steps necessary to maintain our position as market leader.”

Hirsch International Corp.

Must ReadView All

Textiles | On 20th Feb 2017

UK textile & apparel exports up 7.05% in 2016: UKFT

The exports of apparel and textiles from the UK have increased by...

Textiles | On 20th Feb 2017

Himatsingka Seide incorporates subsidiary in Europe

Himatsingka Seide Ltd, one of the largest producers of home textiles...

Courtesy: Green Initiatives

Apparel/Garments | On 20th Feb 2017

Green Initiatives launches Re:Form to end textile waste

Green Initiatives, a non-government institution, has launched...

Interviews View All

Kamlesh Vaghela
RK Textiles

Very few machinery manufacturers have R&D units

Sonia Agarwal

‘The terms eco-friendly and organic are common but everyone perceives them ...

C Kamatchisundaram

ITME is an occasion not only to receive new leads but also to work on...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Steve Cole
Xerium Technologies

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

Johan Berlin
InvestKonsult Sweden AB

Investkonsult Sweden AB has been buying and selling second-hand textile...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer Prathyusha Garimella is known for blending...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

February 2017

February 2017

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


Browse Our Archives


Subscribe today and get the latest News update in your mail box.
Advanced Search