LOS ANGELES, Jan. 30, 2008 (PRIME NEWSWIRE) -- Signature Eyewear, Inc. (OTCBB:SEYE) reported increases in its net income and net sales for the fourth quarter and year ended October 31, 2007. The Company has achieved 12 straight quarters and three straight years of profitability. Earnings per share increased to 40 cents per share (basic and fully diluted) in fiscal 2007 from 11 cents per share (basic) and 10 cents per share (fully diluted) in fiscal 2006.
Net income was $1.7 million for the fourth quarter of fiscal 2007, compared to net income of $27,000 for the fourth quarter of fiscal 2006. Net sales were $6.4 million for the 2007 quarter, compared to net sales of $6.0 million for the 2006 quarter.
Net income was $2.7 million for the year ended October 31, 2007, compared to net income of $683,000 for the year ended October 31, 2006.
The principal component of the increase in net income in 2007 was a $1.6 million fourth quarter reduction in the valuation allowance on the Company's deferred tax assets, as compared to a reduction of $558,000 in 2006. The Company reduced the valuation allowance due to its sustained levels of profitability and management's best estimate of future utilization of the deferred tax assets. The deferred tax assets were generated as a result of net operating losses sustained prior to 2003. As of October 31, 2007, the Company had net operating loss carry-forwards for federal and state tax purposes of $15.2 million and $4.3 million respectively.
Net sales increased 8% to $25.0 million for the year ended October 31, 2007, compared to $23.2 million for the year ended October 31, 2006. "Our sales in 2007 were higher primarily due to an increase in sales of bebe eyes and Nicole Miller Eyewear. Sales also increased from the introduction of Cutter & Buck Eyewear in October 2006 and the launch of the Nicole Miller Luxury Collection in January 2007," noted Michael Prince, CEO of Signature Eyewear. "We are extremely proud that our Nicole Miller Luxury Collection was voted the best new eyewear collection at Vision Expo West in September 2007. Both bebe Eyes and Nicole Miller Eyewear contributed to our international and domestic chain growth in 2007," Prince continued.
During the quarter and year, the Company's general and administrative and selling expenses remained relatively constant. "We continue to control our costs while increasing our sales and profits," said Prince. "Our gross profit margin for the quarter and year declined slightly due to the higher concentration of lower margin international and chain sales and to increasing sales of lower margin sunwear to department stores."
During fiscal 2007, the Company reduced its long-term debt $1.4 million from $6.5 million to $5.1 million.
As a result principally of net income, the Company's shareholders' equity increased $2.9 million to $200,000 from a deficit of $2.7 million at October 31, 2006.
Signature Eyewear is a leading designer and marketer of prescription eyeglass frames and sunglasses under internationally-recognized brand names, including bebe eyes, Cutter & Buck Eyewear, Dakota Smith Eyewear, Hart Schaffner Marx Eyewear, Hummer Eyegear, Laura Ashley Eyewear, Nicole Miller Eyewear and the soon to be introduced Carmen Marc Valvo Eyewear. Signature Eyewear's products are sold worldwide to opticians, optometrists and ophthalmologists and to major retail chains. For information about Signature Eyewear, visit the Company's web site at www.seye.com or call 310-330-2700.
The above news release contains forward-looking statements. These statements are based on assumptions that management believes are reasonable based on currently available information, and include statements regarding the intent, belief or current expectations of the Company and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance, and are subject to a wide range of business risks, external factors and uncertainties, including increasing market interest rates. Actual results may differ materially from those indicated by such forward-looking statements. For additional information, please refer to the Company's most recent public filings and 10-K. The Company assumes no obligation to update the information contained in this press release, whether as a result of new information, future events or otherwise.