Signature Eyewear Reports Increase In Net Income for 2009
Los Angeles, CA - Signature Eyewear, Inc. (OTC BB:SEYE:OB) reported an 8.5% increase in net income from $622,000 in its fiscal year ended October 31, 2008 to $675,000 in fiscal year 2009 on net sales of $23.3 million in fiscal year 2009, down 4.9% from $24.5 million in fiscal year 2008. The company has been profitable for five consecutive years.
The increase in net income was due primarily to a substantial reduction in general and administrative expenses and to a lesser extent a reduction in selling and interest expenses.
The decrease in net sales in fiscal 2009 was primarily due to decreases in international sales, as a result of the weak global economy, the acquisition of major international customers by competitors and deep discounting in many international markets. Signature maintained domestic sales relatively constant between the years despite the economic downturn and weak optical frame market.
"SEYE followed an intentioned strategic plan to de-leverage our balance sheet in light of the adverse general business conditions that developed globally during 2009. Resultingly, we reduced inventories from $5.6 million at October 31, 2008 to $3.8 million at October 31, 2009, which greatly reduced our financing requirements. As a result, we were able to reduce our accounts payable and accrued expenses by $1.8 million and our long-term debt (including current portion) decreased $700,000 to $4.2 million at October 31, 2009," explained Michael Prince, CEO of Signature.
Signature Eyewear is a California public company and is a leading designer and marketer of prescription eyeglass frames and sunglasses under internationally-recognized brand names such as Bebe, Carmen Marc Valvo, Cutter and Buck, Hart Schaffner Marx, Hummer, Laura Ashley, Michael Stars, and Nicole Miller. Signature Eyewear’s proprietary brands include Dakota Smith Eyewear and The Signature Eyewear Collection. The Company’s products are sold in the United States and internationally to opticians, optometrists and ophthalmologists, optical retail chains, and department stores. For information about Signature Eyewear call 1-800-765-EYES or visit the company's web site at www.seye.com.