(RTTNews) - Tuesday, Ashworth, Inc.
(ASHW), a designer of sports apparel, announced first quarter financial results, reporting a net loss that widened from the previous year quarter on lower revenues and higher expenses.
The Carlsbad, California-based company's first quarter net loss widened to $7.42 million from $2.45 million in the same quarter a year ago. On a per share basis, loss widened to $0.50 per share from $0.17 per share in the prior year.
First quarter revenue declined 9.8% to $34.52 million from $38.27 million last year.
Gross profit was $12.50 million, down from $15.62 million in the year ago quarter. Gross margin decreased to 36.2% from 40.8% in the comparable quarter a year ago.
The company said the lower gross margin was as a result of the deleveraging effects of the decrease in revenue and an increase in product costs not neutralized by price increases.
Further, due to labor stoppage at a leading headwear dealer, the company incurred extra expenses to divert the production of its NASCAR products to alternate manufacturing facilities and expedite manufacturing and transportation.
Loss from operations widened to $6.86 million from $3.50 million in the comparable quarter of the previous year.
Ashworth's total cash and cash equivalents were $4.21 million as of January 31, 2008, compared to $3.97 million as of January 31, 2007.
ASHW finished Tuesday's regular trading at $2.65, down $0.05 or 1.85%, on a volume of 30,848 shares on the Nasdaq. However, in after-hours trading, the stock gained $0.14 or 5.37%, and was at $2.79.
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