Head N.V. reported that total net revenues for the quarter ended March 31, 2010 increased by €3.8 million ($5.3mm), or 6.7%, to €61.0 million ($84.5mm) from €57.2 million ($75.8mm) in the comparable 2009 period.


This increase was mainly due to improved racquet sports sales offset by a decline in diving. Winter sports remained broadly flat. Gross sales for the company's major segments were: Winter Sports, up 0.6% to €14.0 million ($19.4mm); Racquet Sports, up 14.4% to  €35.7 million ($49.5mm); and  Diving, down 4.5% to €11.5 million ($15.9mm).

 

The adjusted operating loss for the three month period compared to prior year decreased by just over €5 million ($6.9mm) driven by, higher sales, improved gross margin which increased from 38.1% to 42.9% and lower general, administrative and other expenses ($1.25mm) offset by slightly higher selling and marketing costs ($277,200).

The net loss decreased by nearly €10 million ($13.9mm) in the three months to 31st March 2010 compared to the same period in 2009 mainly due to the improved adjusted operating performance compounded by ESOP income, lower interest costs and no restructuring or bond exchange costs in 2010.


Operating cash flow for the first quarter improved by €12.6 million ($17.5mm) due to enhanced operating results and tighter working capital management. Working capital has fallen by €17.5 million ($24.3mm) at 31st March 2010 compared to 31st March 2009.


The improved cash flow and the success of our bond exchange in 2009 has brought our net debt down from €118.3 million ($156.3mm) at the 31st March 2009 to €40.6m ($54.6mm) at the 31st March 2010.


“We are part way through the preseason orders for our winter sports business, and at this stage, based on our bookings we believe that winter sport sales will be broadly in line with last year's, however it is too early in the year to predict the company's overall performance in 2010,” the company said in a press release.