Cygne Designs, Inc. Announces Fourth Quarter and Year 2001 Results and Intent to Form a Joint Venture.Business Editors NEW YORK--(BUSINESS WIRE)--May 3, 2002 Cygne Designs, Inc. (OTC OTC See: Over-the-counter. OTC See over-the-counter market (OTC). BB: CYDS CYDS Centre for Youth Drug Studies (Australia) .OB) today announced results of operations for the fourth quarter and year ended February February: see month. 2, 2002. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the fourth quarter ended February 2, 2002 were $9,907,000, an increase of $1,764,000, or 22%, from the comparable prior period. The increase in net sales for the fourth quarter ended February 2, 2002 was primarily attributable attributable emanating from or pertaining to attribute. attributable proportion see attributable risk (below). attributable risk to sales to its new customers of $4,254,000 partially offset by decreased sales of $1,430,000, to its existing customer, The Limited, Inc. Net sales for the year ended February 2, 2002 were $41,177,000, an increase of $12,796,000, or 45%, from the comparable prior period in 2000. The increase in net sales for the year ended February 2, 2002 was primarily attributable to sales to new customers of $18,560,000 offset by decreased sales of $5,018,000 to its existing customer, The Limited, Inc. The Limited, Inc. accounted for 57% of the net sales for the fourth quarter ended February 2, 2002, as compared to 87% in the comparable prior period in 2000, and for the year 2001, accounted for 53% of the net sales as compared to 95% in the comparable period in 2000. Net loss for the fourth quarter ended February 2, 2002 was $366,000 or $0.03 on a basic and dilutive per share basis, compared to a net loss of $36,000 or breakeven breakeven 1. The level of output or sales necessary to cover fixed expenses. Companies in industries that have high fixed costs and, consequently, high breakevens, such as automobile and steel manufacturing, are likely to exhibit large fluctuations on a basic and dilutive per share basis in the comparable prior period in 2000. Net loss for year ended February 2, 2002 was $221,000 or $0.02 on a basic and dilutive per share basis, compared to net income of $189,000 or $0.02 on a basic and dilutive per share basis in the comparable prior period in 2000. On April 1, 2002, Cygne Designs, Inc. ("Cygne") and Boscan Middle East Investments Limited ("BMEI BMEI Backfit Master Equipment Inventory BMEI Biologia Molecular de Eucariontes Inferiores ") signed a letter of intent to form a Joint Venture to be the exclusive entity through which Cygne and BMEI will sell knit clothing manufactured in Jordan Jordan, country, Asia Jordan, officially Hashemite Kingdom of Jordan, kingdom (2005 est. pop. 5,760,000), 35,637 sq mi (92,300 sq km), SW Asia. It borders on Israel and the West Bank in the west, on Syria in the north, on Iraq in the northeast, and on Saudi . Both Cygne and BMEI are currently doing business in Jordan as sellers and manufacturers of knit clothing. Cygne will cease doing knit business in Jordan through Prosperity Textiles textiles, all fabrics made by weaving, felting, knitting, braiding, or netting, from the various textile fibers (see fiber). Types of Textiles Ltd. (its Jordanian subsidiary) within sixty days of the Joint Venture closing date. The unamortized goodwill of $180,000, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc Prosperity, has been written off to expense in the year ended February 2, 2002. Cygne will be using the equity method of accounting to record its initial investment and all future activities of the Joint Venture. Cygne Designs, Inc. is a private label manufacturer of women's career and casual apparel. Statements contained in this press release which are not historical facts are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. as that term is defined in the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995. All forward-looking statements are subject to risks and uncertainties which could cause actual results to differ from those projected. Such risks and uncertainties are discussed more fully in the Company's Annual Report on From 10-K for the year ended February 2, 2002 and the Company's other filings with the Securities and Exchange Commission.
CYGNE DESIGNS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Quarters Ended Twelve Months Ended
---------------- ----------------
Feb. 2, Feb. 3, Feb. 2, Feb. 3,
2002 2001 2002 2001
------- ------- ------- -------
Net sales $ 9,907 $ 8,143 $41,177 $28,381
Cost of goods sold 9,772 7,086 37,196 24,852
------- ------- ------- -------
Gross profit 135 1,057 3,981 3,529
Selling, general and
administrative expenses 966 1,161 4,394 3,508
Reversal of provision for
impairment of Israeli
Knit business assets (959) -- (959) --
Write off and amortization of
goodwill 200 -- 200 --
Amortization of other intangibles 50 -- 125 --
------- ------- ------- -------
Income from operations (122) (104) 221 21
Interest income 1 162 34 277
Interest expense (225) (89) (432) (89)
------- ------- ------- -------
(Loss) income before provision
for income taxes (346) (31) (177) 209
Provision for income taxes 20 5 44 20
------- ------- ------- -------
Net (loss) income $ (366) $ (36) $ (221) $ 189
======= ======= ======= =======
Net income per share-basic and
dilutive $ (0.03) $ (0.00) $ (0.02) $ 0.02
======= ======= ======= =======
Weighted average number of common
shares outstanding-basic and
dilutive 12,438 12,438 12,438 12,438
======= ======= ======= =======
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion