Aldila, Inc. reported net sales were $11.3 million for the 2011 first quarter, down 29.7 percent from the $16.1 million achieved in the year-ago period.
In a conference call with analysts, company CEO Peter Mathewson said that while there have been pockets of success in 2011 with new club offerings, slow golf shaft sales have carried over from the fourth quarter of 2010.
The company reported a net loss of $535,000, or 10 cents per share, in Q1 compared to a net income of $707,000, or 13 cents per share, in the year-ago period. Gross margins were 19.0 percent of sales in Q1, down 630 basis points versus the year-ago period.
Aldilas Composite Materials business recorded a 14 percent increase in the quarter, and Mathewson said the company continues to see opportunities for growth and (is) focusing efforts towards realizing these new sales.
Mathewson added that the integration of the Victory Archery acquisition and transition of manufacturing to Vietnam are progressing well. He indicated that the first production line has been installed and limited production has been underway during the quarter. A second production line will be installed and operational shortly.
