Cygne Designs, Inc. Announces Second Quarter And First Six Months 2003 Results.Business Editors NEW YORK--(BUSINESS WIRE)--Sept. 16, 2003 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 second quarter and first six months ended August 2, 2003. 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 from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the first six months of 2003 were $11,853,000, an increase of $434,000 or 3.8% from $11,419,000 in the first six months of 2002. The increase in sales was primarily attributable to sales to a new customer, Jordache Jordache Enterprises, Inc. is a clothing company that manufactures (or contracts for the manufacture of) apparel including shirts, jeans, and outerwear.[0] The brand is known for its designer jeans that were popular in the late 1970s and early 1980s. Enterprises, and increased sales to Lerner Ler·ner , Alan Jay 1918-1986. American playwright and lyricist. He wrote a number of musicals with the composer Frederick Loewe, including Brigadoon (1947) and My Fair Lady (1956). Noun 1. New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of ("Lerner"). The rate of increase in sales during the first six months of 2003 compared to 2002 may not necessarily be indicative of the rate of increase in sales for the fiscal year ended January January: see month. 31, 2004. Lerner accounted for 90% and 88% of the net sales from continuing operations for the first six months of 2003 and 2002, respectively. Income from continuing operations before income taxes for the first six months of 2003 ended August 2, 2003 was $272,000, compared to a loss from continuing operations before income taxes of $441,000 in the comparable period in 2002. Cygne's income from continuing operations for the first six months of 2003 may not necessarily be indicative of the results that may be expected for the fiscal year ended January 31, 2004. The sale of Cygne's Jordanian business and its related operating results has been excluded from the results from continuing operations and has been classified as a discontinued operation discontinued operation A segment of a business that has been abandoned or sold or for which plans for one or another of these actions have been approved. See also continuing operations. for the first six months of 2002. The loss from the discontinued operation for the first six months ended August 3, 2002 was $2,296,000. Net income for the first six months of 2003 ended August 2, 2003 was $256,000 or $0.02 on a basic and diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. per share basis, compared to a net income of $2,047,000 (after a $4,800,000 tax benefit) or $0.16 on a basic and diluted per share basis in the comparable period in 2002. Net income for the first six months 2002 includes the reversal of a tax accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. of $4,800,000 that was established in a prior year in connection with a potential tax deficiency proposed by the IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. . Net sales from continuing operations for the second quarter of 2003 were $5,789,000, a decrease of $423,000 or 6.8% from $6,212,000 in the second quarter of 2002. The decrease in sales was primarily attributable to decreased sales to Lerner. Lerner accounted for 88% and 99% of the net sales from continuing operations for second quarter of 2003 and 2002, respectively. Income from continuing operations before income taxes for the second quarter of 2003 ended August 2, 2003 was $102,000, compared to income from continuing operations before income taxes of $192,000 in the comparable period in 2002. Net income for the second quarter of 2003 ended August 2, 2003 was $95,000 or $0.01 on a basic and diluted per share basis, compared to a net loss (after loss from discontinued operation of $391,000) of $207,000 or $0.02 on a basic and diluted per share basis in the comparable prior period in 2002. Cygne Designs, Inc. is a manufacturer of private label women's career and casual apparel with sales to retailers and wholesalers located in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . 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 Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended February 1, 2003 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 Six Months Ended
--------------- -----------------
August 2 August 3 August 2 August 3
2003 2002 2003 2002
------- ------- -------- --------
Net sales $5,789 $6,212 $11,853 $11,419
Cost of goods sold 4,874 5,258 9,918 10,245
------- ------- -------- --------
Gross profit 915 954 1,935 1,174
Selling, general and administrative
expenses 778 717 1,589 1,518
------- ------- -------- --------
Income (loss) from continuing
operations
before interest and income taxes 137 237 346 (344)
Interest expense, net 35 45 74 97
------- ------- -------- --------
Income (loss) from continuing
operations
before income taxes 102 192 272 (441)
Provision (benefit) for income taxes 7 8 16 (4,784)
------- ------- -------- --------
Income from continuing operations 95 184 256 4,343
(Loss) from discontinued operation,
net 0 (391) 0 (2,296)
------- ------- -------- --------
Net income (loss) $95 ($207) $256 $2,047
======= ======= ======== ========
Income per share-basic and diluted
from continuing operations $0.01 $0.01 $0.02 $0.35
(Loss) per share-basic and diluted
from discontinued operation 0.00 (0.03) 0.00 (0.19)
------- ------- -------- --------
Net income (loss) per share-basic
and diluted $0.01 ($0.02) $0.02 $0.16
======= ======= ======== ========
Weighted average common shares
outstanding:
Basic 12,438 12,438 12,438 12,438
======= ======= ======== ========
Diluted 12,440 12,438 12,440 12,438
======= ======= ======== ========
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