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A.T. Cross Company (ATX) announced its financial results for the third quarter ended October 3, 2009. Consolidated net sales for the third quarter declined 12.4% to $34.1 million. Net income per shares for the third quarter was $0.06 versus $0.11 per share in the third quarter of 2008. This beat analysts' estimate for net income of $0.02 per share. David Whalen, President and CEO of A.T. Cross, commented in a conference call, "We began to see trend improvements in our business during Q3. Each of our three brands delivered better revenue trends that those we saw in the first half of the year. In fact, our Costa Del Mar sunglasses brand returned to double-digit growth. We also saw distribution gains within the Cross accessories division. We implemented cost cutting initiatives, and we are managing our business aggressively and appropriately. Our cash position improved by $2.4 million from one year ago, and we retired $2 million of long term debt during the quarter." He noted, "Our Costa Del Mar brand is a significant bright spot for us. It far outpaced the industry during the quarter, and we expect that growth and profits from this brand to accelerate." Mr. Whalen added, "The Cross brand declined as a result of a reduction in consumer discretionary spending and reduction in inventories by retail customers. However, we expect the trend for this brand to improve in Q4." He explained, "We are continuing to lower our cost structure in the Cross segment, which should have a substantially positive effect on the Company. By the end of this year, we will have completed the move of all of our manufacturing operations from Rhode Island to China. This gives us a permanent low cost facility in which to build high quality products. We have also reduced our distribution cost structure for Cross by sourcing to a 3rd party operator in Asia. We have lowered the 2009 operating expenses for this division by 15%, or nearly $7 million." Mr. Whalen said, "With the strength of our balance sheet, we will continue to look for accretive acquisitions. Given the environemnt, industry consolidation is probable. If that is the case, we intend to be a player." The Company expects FY09 EPS between $0.11 and $0.15. This range is net of $0.08 per share of restructuring charges. This FY09 earnings forecast is below current consensus estimates. Mr. Whalen concluded, "We have positioned the business for significant top and bottom line growth in fiscal 2010." KNOBIAS DISCLAIMER: All statements made in this article were made by the Company and do not in any way reflect the opinions of Knobias. Knobias is not a registered broker-dealer, nor investment advisor, and does not endorse or recommend any securities mentioned. This story is provided for informational purposes only and is not intended for trading purposes. Knobias shall not be liable for any actions taken in reliance of any information provided herein. Republication or redistribution of Knobias content is expressly prohibited without prior written consent of Knobias.com, LLC. ABOUT KNOBIAS: Knobias is a premier financial information provider of trading and investing data covering all U.S. equities for investors and security professionals. Knobias is best described by its three major components: Real-time desktop applications providing quotes, charts, level 2, analysis etc.; Knobias RAiDAR providing thousands of real-time news stories, alerts and documents daily; Knobias fundamentals providing a comprehensive database of fundamental research information. If your company wishes to participate in the EventX newswire, please contact Knobias: http://www.knobias.com Knobias.com, LLC 601-978-3399 601-978-3675 info@knobias.com www.knobias.com/cmtx For full details for ATX click here.
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