Signature Eyewear Reports Increase In Net Income for 2009


Los Angeles, CA - Signature Eyewear, Inc. (OTC BB:SEYE:OB) reported net income of $157,000 on net sales of $5.9 million for the quarter ended April 30, 2010. This compares to net income of $216,000 on net sales of $6.1 million for the quarter ended April 30, 2009. This is the company’s 18th consecutive profitable quarter.


For the six months ended April 30, 2010, compared to the comparable period in fiscal 2009, net income decreased to $299,000 from $415,000 while net sales declined to $11.0 million from $12.1 million.


Net sales continue to be adversely affected by the recession. While unit sales have remained relatively constant between the 2009 and 2010 periods, the average sales price of Signature’s frames has declined as consumers purchase lower cost frames and the Company offers higher customer discounts. In addition, net sales in the 2010 periods have been impacted by production delays at the Company’s Chinese frame manufacturers, due primarily to labor shortages. These labor shortages may result in production delays for at least the next several quarters and higher frame prices.


The decrease in net income in the 2010 periods was due primarily to net sales and a lower gross margin partially offset by lower operating expenses and interest expense.


"We are continuing to contain our costs during a very challenging global economy," stated Michael Prince, Chief Executive Officer of Signature. "These efforts, together with the consumer-friendly price structure of our lines, have enabled us to continue to operate profitably and improve our balance sheet in this difficult environment."


The Company has further reduced its debt, from $4.2 million at October 31, 2009, to $3.7 million at April 30, 2010, its lowest level in more than 10 years.


Signature Eyewear is a California public company and is a leading designer and marketer of prescription eyeglass frames and sunglasses under internationally-recognized brand names such as Bebe, Carmen Marc Valvo, Cutter and Buck, Hart Schaffner Marx, Hummer, Laura Ashley, Michael Stars, and Nicole Miller. Signature Eyewear’s proprietary brands include Dakota Smith Eyewear and The Signature Eyewear Collection. The Company’s products are sold in the United States and internationally to opticians, optometrists and ophthalmologists, optical retail chains, and department stores. For information about Signature Eyewear call 1-800-765-EYES or visit the company's web site at www.seye.com.