> News
> Financial News
> Hirsch International Corp. Reports First Quarter 2007 Results
Hirsch International Corp. Reports First Quarter 2007 Results
HAUPPAUGE, NY ? May 2, 2007 ? Hirsch International Corp. (NASDAQ: HRSH), a leading provider of advanced commercial embroidery, screenprinting, and laser systems and related support services to the North American decorated apparel marketplace, reported its financial results for the three months ended March 31, 2007. Hirsch has changed its fiscal year end from January 28th to December 31st, and the first quarter ended March 31, 2007, is thus compared with the two months ended March 31, 2006.
Highlights for the first quarter March 31, 2007 results are as follows:
? Net sales were $14.0 million for the three months ended March 31, 2007, as compared to $8.6 million for the two months ended March 31, 2006, an increase of $5.4 million.
? Gross profit margin, as a percentage of sales, improved to 38.1% for the three months ended March 31, 2007, as compared to 35.5% for the two months ended March 31, 2006.
? Gross profit for the quarter ended March 31, 2007, was $5.4 million, as compared to $3.1 million for the two months ended March 31, 2006, an increase of $2.3 million.
? Operating expense was $4.5 million for the three months ended March 31, 2007, as compared to $2.8 million for the two months ended March 31, 2006, an increase of $1.7 million.
? Operating income for the quarter ended March 31, 2007, was $811,000, as compared to $260,000 for the two months ended March 31, 2006, an increase of $551,000.
? Net income for the quarter ended March 31, 2007, was $817,000, as compared to $292,000 for the two months ended March 31, 2006, an increase of $525,000.
? Earnings per share (EPS) for the quarter ended March 31, 2007 was $0.09, as compared to $0.03 for the two months ended March 31, 2006, an increase of $0.06.
"We are pleased to report another quarter of solid results." said Paul Gallagher, Hirsch's President and Chief Executive Officer. "The first quarter sales run rate was up eight percent while the operating income run rate more than doubled to over $800,000. Additionally, we continue to progress in building the needed infrastructure to support sales of MHM screenprinting equipment and SEIT laser systems. We have completed over forty screenprinting machine installations through March and just last week completed the first sale of an advanced SEIT laser system ? further reinforcing the expected positive impact both product lines will have for our customers and on our future performance and market position."
Mr. Gallagher concluded, "We believe our proven business model designed to drive top and bottom-line growth combined with our outstanding sales and support team and our strong balance sheet, provides us with a great platform for growth. We are continuing to aggressively look for expansion opportunities in and around the $6 billion decorated apparel market and beyond that will provide growth that we expect to be directly accretive to earnings and shareholder value."
-more-
About Hirsch International Corp.
Hirsch is the leading provider of advanced computerized commercial embroidery systems and support services in the United States. The Company offers single and multi-head embroidery machines; proprietary application software; embroidery parts, supplies and accessories; and technical service and support. Hirsch's customers include contract embroiderers, manufacturers of apparel and fashion accessories, retail stores, and embroidery entrepreneurs. The Company is the country's leading single source provider of Tajima embroidery systems, marketed under the name "Tajima USA Sales & Support by Hirsch."
Additionally, on August 2, 2006 Hirsch announced that it has entered into an exclusive ten-year distribution agreement with MHM Siebdruckmaschinen GmbH for the distribution and support of MHM screenprinting equipment in North America. MHM's product line will be marketed under the name "MHM North America by Hirsch". On January 25, 2007, the Company announced an exclusive ten-year distribution agreement with SEIT Electronica SRL based in Italy. Hirsch will provide sales and support services for the SEIT line of laser application equipment throughout the U.S.
Hirsch, lead by a strong and experienced management team, is focused on continuing to grow its core business through sound acquisitions of products and processes, as well as through related business ventures in which the Company can build and maximize stockholder value. The Company was founded in 1970 and is headquartered in Hauppauge, NY.
Safe Harbor Statement
This press release contains forward-looking statements set within the meaning of the Private Securities Litigation Reform Act of 1955. Except for historical information contained herein, the matters set forth in this news release are forward-looking statements. The Company noted that forward-looking statements set forth above involve a number of risks and uncertainties that could cause actual results to differ materially from any such statement, including, without limitation, the risks and uncertainties discussed under the caption "Risk Factors" in the Company's Form 10-K for calendar 2006, which discussion is incorporated herein by reference. Readers are also urged to read the periodic filings and current reports on Form 8-K of the Company.
Contacts:
Paul Gallagher
President and Chief Executive Officer
Hirsch International Corp.
631-701-2211
pgallagher@hirschintl.com
Beverly Eichel
Chief Financial Officer
Hirsch International Corp.
631-701-2169
beichel@hirschintl.com
Investor Relations:
Katrine Winther-Olesen / Emily Hanan / Rachel Colgate / Joseph Triunfo
The Investor Relations Group
212-825-3210
<< Back to news