A.T. Cross Company said strong sales of its Costa and Native sunglass brands drove strong sales and earnings gains in the second quarter ended July 3, 2010.


The Lincoln, R.I. company reported consolidated sales for the for the second quarter of 2010 increased by 11.9% to $41.7 million compared to $37.3 million in the second quarter of 2009. Sales grew 23.1% to $20.3 million at Cross Optical Division, compared to last year. The Cross Accessory Division (CAD), which sells pens, time pieces and other business accessories, recorded revenue of $21.4 million, an increase of 3.0%, compared to last year.


Gross margin in the quarter was 57.3% compared to 54.7% in last year's second quarter. Operating income in the quarter was $3.9 million as compared to $1.5 million in the second quarter of last year. Net income for the second quarter was $2.7 million, or 20 cents per share, compared to $600,000, or 4 cents per share, last year.


“The Cross Optical Group powered through its second quarter peak season with both brands generating strong, double digit revenue growth and operating income up significantly,” said David G. Whalen, President and Chief Executive Officer of A.T. Cross.







































































































































































































































































A. T. CROSS COMPANY



 


CONSOLIDATED STATEMENTS OF OPERATIONS



 


(in thousands, except per share amounts)



 


(unaudited)















Three Months Ended Six Months Ended

July 3,
2010
July 4,
2009
July 3,
2010
July 4,
2009


Net sales $ 41,748 $ 37,306 $ 76,121 $ 68,146
Cost of goods sold 17,843 16,904 32,697 30,988
Gross Profit 23,905 20,402 43,424 37,158
Selling, general and administrative expenses 17,435 15,909 34,135 32,463
Service and distribution costs 1,841 1,727 3,469 3,339
Research and development expenses 708 576 1,373 1,195
Restructuring charges 737 797
Operating Income (Loss) 3,921 1,453 4,447 (636)
Interest and other expense (139) (183) (416) (774)
Income (Loss) Before Income Taxes 3,782 1,270 4,031 (1,410)
Income tax provision (benefit) 1,068 635 1,143 (1,096)
Net Income (Loss) $ 2,714 $ 635 $ 2,888 $ (314)






Net Income (Loss) per Share:




Basic $ 0.20 $ 0.04 $ 0.22 $ (0.02)
Diluted $ 0.20 $ 0.04 $ 0.21 $ (0.02)






Weighted Average Shares Outstanding:




Basic 13,339 14,581 13,332 14,835
Diluted 13,458 14,593 13,434 14,835
Three Months Ended Six Months Ended

July 3,
2010
July 4,
2009
July 3,
2010
July 4,
2009
Segment Data: Cross Accessory Division




Net Sales $ 21,383 $ 20,762 $ 42,099 $ 39,527
Operating Loss (609) (2,069) (1,200) (4,932)






Segment Data: Cross Optical Group




Net Sales $ 20,365 $ 16,544 $ 34,022 $ 28,619
Operating Income 4,530 3,522 5,647 4,296