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

FDI in Vietnamese textile-garment projects on the rise

Apparel/Garments | On 24th Jun 2018

FDI in Vietnamese textile-garment projects on the rise

The European Union-Vietnam Free Trade Agreement and the Comprehensive ...

Courtesy: Alizilla

Apparel/Garments | On 24th Jun 2018

Alibaba Group sets up office in Kuala Lumpur

Strengthening its commitment to Malaysia, Alibaba Group has set up an ...

Bombay Dyeing plans to wind up Indonesian JV

Textiles | On 24th Jun 2018

Bombay Dyeing plans to wind up Indonesian JV

Bombay Dyeing & Manufacturing Co Ltd plans to wind up its loss making ...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Karan Suratwala
Key Textile Accessories Private Limited

Chinese imports are destroying the supply chain

Subhashini Srinivasan
The S Studio

Ethnicwear market will see an upward trend if uniqueness and quality are...

Akshat Chaudhary

Aizome, Asia's first Fairtrade denim brand, is all set to launch next...

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Iago Castro Asensio
RCfil Distribuciones S.L.

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

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Eric Scholler

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

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, 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


Leave your Comments

June 2018

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

news category

Related Categories:

Advanced Search