Cygne Designs, Inc. Announces Third Quarter and Nine Months 2002 Results.Business Editors NEW YORK--(BUSINESS WIRE)--Dec. 13, 2002 Cygne Designs, Inc. (OTCBB OTCBB See OTC Bulletin Board (OTCBB). :CYDS CYDS Centre for Youth Drug Studies (Australia) .OB) today announced results of operations for the third quarter and nine months ended November November: 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 from the Americas A·mer·i·cas , the See America. and Far East for the third quarter of 2002 were $5,366,000, a decrease of $941,000 or 15% from $6,307,000 in the third quarter of 2001. The decrease in sales was primarily attributable to the timing of shipments in 2002 compared to 2001. 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 accounted for 100% of the Americas and Far East net sales for the third quarter of 2002 compared to 88% in the comparable period in 2001. Net sales from the Americas and Far East for the nine months of 2002 were $16,785, 000, a decrease of $5,811,000 or 26% from $22,596,000 in the nine months of 2001. The decrease in sales for the nine months was attributable to the decrease in sales incurred during the first quarter of 2002 combined with the timing of shipments in the third quarter of 2002. There were no net sales from the Middle East for the third quarter of 2002 compared to $5,503,000 in the third quarter of 2001. Net sales from the Middle East for the nine months of 2002 were $2,598,000, a decrease of $6,076,000 compared to $8,674,000 in the nine months of 2001. The Middle East Knit business was sold in June June: see month. 2002. Net sales for the third quarter ended November 2, 2002 were $5,366,000, a decrease of $6,444,000 (of which $5,503,000 is attributable to the Middle East Knit business which was sold in June 2002) from $11,810,000 in the comparable prior period. Net sales for nine months of 2002 were $19,383,000, a decrease of $11,887,000 (of which $6,076,000 is attributable to the Middle East Knit business which was sold in June 2002) from $31,270,000 in the nine months of 2001. Net loss for the third quarter ended November 2, 2002 was $206,000 or $0.02 on a basic and dilutive per share basis, compared to a net income of $13,000 or break-even on a basic and dilutive per share basis in the comparable prior period in 2001. The loss for the third quarter was primarily attributable to timing of shipments in the third quarter of 2002 compared to 2001. Net income for the nine months of 2002 was $1,841,000 or $0.15 on a basic and dilutive per share basis, compared to net income of $145,000 or $0 .01 on a basic and dilutive per share basis in the comparable prior period in 2001. Net income for the nine months of 2002 includes the reversal reversal n. the decision of a court of appeal ruling that the judgment of a lower court was incorrect and is reversed. The result is that the lower court which tried the case is instructed to dismiss the original action, retry the case, or is ordered to change its of a tax accrual accrual, n continually recurring short-term liabilities. Examples are accrued wages, taxes, and interest. during the first quarter 2002 of $4,800,000 established 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. . The Company and the IRS have executed a settlement agreement for this proposed deficiency with no tax payment due. 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 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 February: see month. 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 Nine Months Ended
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November 2 November 3 November 2 November 3
2002 2001 2002 2001
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Net sales
Americas and Far East $5,366 $6,307 $16,785 $22,596
Middle East -- 5,503 2,598 8,674
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5,366 11,810 19,383 31,270
Cost of goods sold
Americas and Far East 4,701 5,122 14,945 19,071
Middle East -- 5,465 4,586 8,353
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4,701 10,587 19,531 27,424
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Gross profit (loss) 665 1,223 (148) 3,846
Selling, general and
administrative expenses 823 1,040 2,642 3,428
Write off of other
intangibles -- -- 213 --
Amortization of other
intangibles -- 47 42 75
Gain on sale of business -- -- (400) --
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(Loss) income from
operations (158) 136 (2,645) 343
Interest income 10 -- 22 33
Interest expense (50) (118) (312) (207)
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(Loss) income before
provision for income
taxes (198) 18 (2,935) 169
Provision (benefit) for
income taxes 8 5 (4,776) 24
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Net (loss) income $(206) $13 $1,841 $145
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Net (loss )income per
share-basic and dilutive $(0.02) $0.00 $0.15 $0.01
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Weighted average number of
common shares
outstanding-basic and
dilutive 12,438 12,438 12,438 12,438
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