LOS ANGELES, March 17, 2008 (PRIME NEWSWIRE) -- Signature Eyewear, Inc. (OTCBB:SEYE) reported net income of $150,000 for the quarter ended January 31, 2008, as compared to net income of $154,000 for the quarter ended January 31, 2007. The Company has achieved 13 straight quarters of profitability.
Net sales were $5.6 million for the first quarter of fiscal 2008, compared to net sales of $6.0 million for the first quarter of fiscal 2007. Operating income was $232,000 for the 2008 quarter, compared to operating income of $199,000 for the 2007 quarter.
The decrease in net sales in the first fiscal quarter of 2008 was due primarily to the slowdown in the domestic economy and a general slowdown in the optical frame sector. The increase in operating income was due primarily to an increase in gross margin and reduced operating expenses. Net income was also favorably impacted by a $40,000 reduction in interest expense due to a lower level of borrowings and lower interest rates, the latter resulting from the refinancing of the Company's credit facility in September 2007.
"We are pleased about the increase in our operating income despite the decrease in net sales. Although our net income was about the same in each of the quarters, approximately one half of our net income in Q1 2007 was due to an income tax benefit from the decrease in the valuation allowance on our deferred tax asset. We are also pleased that our Laura Ashley Eyewear line experienced 27.8% growth compared to Q1 2007," noted Michael Prince, CEO of Signature Eyewear.
"We are looking forward to the launch of our Carmen Marc Valvo collection," continued Mr. Prince. "This luxury collection will be previewed at the Vision Expo East optical convention in New York in April 2008."
About Signature Eyewear
Signature Eyewear is a leading designer and marketer of prescription eyeglass frames and sunglasses under internationally-recognized brand names, including bebe eyes, Cutter & Buck Eyewear, Dakota Smith Eyewear, Hart Schaffner Marx Eyewear, Hummer Eyegear, Laura Ashley Eyewear, Nicole Miller Eyewear and the soon to be introduced Carmen Marc Valvo Eyewear. Signature Eyewear's products are sold worldwide to opticians, optometrists and ophthalmologists and to major retail chains. For information about Signature Eyewear, visit the Company's web site at http://www.seye.com or call 310-330-2700.
The above news release contains forward-looking statements. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and are subject to a wide range of business risks, external factors and uncertainties, including increasing market interest rates. Actual results may differ materially from those indicated by such forward-looking statements. For additional information, please consult the Company's most recent public filings and 10-K. The Company assumes no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise.