NEW YORK — An uptick in sales led to bottom-line growth for Tefron Ltd. in the second quarter, but an accounting charge pushed the company into the red for the first half of fiscal 2002.
This story first appeared in the September 23, 2002 issue of WWD. Subscribe Today.
For the three months ended June 30, the Bnei-Brak, Israel-based seamless intimate apparel maker recorded net income of $3.1 million, or 25 cents a diluted share. That compares with last year when the company recorded a quarterly net loss of $2.6 million, or 21 cents.
Sales for the period grew 3.2 percent to $49.7 million from $48.1 million a year ago.
“We met our previously announced expectation that the company would be back to the sales level that we achieved in the last three quarters of 2001,” said chief executive officer Yos Shiran in a statement. “Tefron’s main focus for the foreseeable future will be on our sales and marketing efforts in order to increase our sales and expand our market share.”
In a separate matter, Arie Wolfson has been reappointed chairman of the company, a post he resigned in September 2000. Wolfson replaced Sigi Rabinowicz, who remains Tefron’s president. Rabinowicz said he resigned the chairmanship in order to focus solely on the company’s sales and marketing efforts.
Overall, for the first six months of the fiscal year, Tefron recorded a net loss of $15 million, or $1.21 a diluted share. That compares to last year when the company reported a loss of $7.8 million, or 62 cents.
Excluding an $18.8 million one-time, after-tax adjustment related to amortization of goodwill, the company would have reported income of $3.7 million, or 30 cents a share, in this year’s half. Earnings before interest, taxes, depreciation and amortization leapt more than 4,000 percent to $13.2 million from $302,000 last year.
Sales for the first half ticked down, shedding 1.7 percent to $89.9 million from $91.4 million a year ago.