Signature Eyewear Reports Increase in Net Income for 2009

The increase in net income was due primarily to a substantial reduction in general and administrative expenses and to a lesser extent a reduction in selling and interest expenses.
The decrease in net sales in fiscal 2009 was primarily due to decreases in international sales, as a result of the weak global economy, the acquisition of major international customers by competitors and deep discounting in many international markets. Signature maintained domestic sales relatively constant between the years despite the economic downturn and weak optical frame market.
"In light of the continuing adverse economic conditions, during the year we continued our efforts to improve our balance sheet. We reduced inventories from $5.6 million at October 31, 2008 to $3.8 million at October 31, 2009, which greatly reduced our financing requirements. As a result, we were able to reduce our accounts payable and accrued expenses by $1.8 million and our long-term debt (including current portion) decreased $700,000 to $4.2 million at October 31, 2009," explained Michael Prince, CEO of Signature.