Cygne Designs, Inc. Announces Second Quarter and Six Months 1998 Results.NEW YORK--(BUSINESS WIRE)--Sept. 15, 1998--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) ) today announced results of operations for the second quarter and six months ended August 1, 1998. 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 second quarter ended August 1, 1998 decreased by 22.7% to $8.5 million from $11.0 million for the comparable period in 1997. Net sales for the first six months ended August 1, 1998 were $14.7 million, a decrease of 20.8% from $18.6 million in the comparable period in 1997. The decreases in net sales for the second quarter and the first six months of 1998 were primarily attributable to decreases in sales to divisions of The Limited, Inc. of $2.6 million and $3.6 million, respectively. Net loss for the second quarter of 1998 was $1.1 million, or $0.09 on a per share basis, compared to a net loss of $2.8 million, or $0.23 on a per share basis, in the comparable prior period. Net loss for the first six months of 1998 was $2.5 million, or $0.20 on a per share basis, compared to a net loss of $7.4 million or $0.59 on a per share basis, in the comparable prior period. As previously announced, the Company anticipates that it will have a net loss for 1998. The extent of the net loss will depend, among other things, on the amount of sales to The Limited, Inc. The Company is continuing to review its business operations Business operations are those activities involved in the running of a business for the purpose of producing value for the stakeholders. Compare business processes. The outcome of business operations is the harvesting of value from assets and expects to incur additional costs in the future associated with the further restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). or downsizing (1) Converting mainframe and mini-based systems to client/server LANs. (2) To reduce equipment and associated costs by switching to a less-expensive system. (jargon) downsizing of its operations. 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 January 31, 1998 and the Company s other filings with the Securities and Exchange Commission. The Company assumes no obligation to update or revise any such forward-looking statements. Cygne Designs, Inc. is a private label merchandiser and manufacturer of woven A woven is a cloth formed by weaving. It only stretches in the Bias directions (between the warp and weft directions), unless the threads are elastic. Woven cloth usually frays at the edges, unless measures are taken to counter this, such as the use of pinking shears or hemming. and knit career and casual clothing for women. -0-
(Financial Table to Follow)
CYGNE DESIGNS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited, in thousands, except per share data)
Three Months Ended Six Months Ended
August 1, August 2, August 1, August 2,
1998 1997 1998 1997
Net sales $8,509 $11,003 $14,754 $18,640
Cost of goods sold 8,110 10,907 14,593 19,203
Gross profit (loss) 399 96 161 (563)
Selling, general and
administrative expenses 1,356 2,813 2,372 6,689
Amortization of
intangibles 91 91 182 182
(Loss) from operations (1,048) (2,808) (2,393) (7,434)
Interest expense
(income), net 1 (54) (49) (149)
(Loss) before provision
for income taxes (1,049) (2,754) (2,344) (7,285)
Provision for
income taxes 78 51 111 102
Net (loss) $(1,127) $(2,805) $(2,455) $(7,387)
Net (loss) per
share-basic $(0.09) $(0.23) $(0.20) $(0.59)
Weighted average number
of common shares
outstanding 12,438 12,438 12,438 12,438
Net (loss) per share-
assuming dilution $(0.09) $(0.23) $(0.20) $(0.59)
Weighted average number
of common shares
and dilutive
securities 12,438 12,438 12,438 12,438
CONTACT: Cygne Designs, Inc. Roy E. Green Chief Financial Officer 212-354-6474 or Shannon Moody/Kiron Bloom bloom 1. the general appearance of the surface. In carcass meat it is the glistening, transparent effect and the gentle pink color that gives a good bloom to the carcass. It is the result of proper tissue hydration coupled with the correct proportions of fat, connective tissue and Press: Michael McMullan Morgen-Walke Associates 212-850-5600 |
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