Volcom, Inc. reported sales for the first quarter ended March 31 were  $77.4 million compared with $68.3 million in the first quarter of 2009. Total revenues in the companys U.S. segment, which includes revenues from the U.S., Canada, Japan and most other international territories outside of Europe, as well as the companys branded retail stores, were $48.2 million, compared with $42.4 million in the prior-year period.


Total revenues in the companys Europe segment were $23.6 million, compared with $21.7 million in the same period in 2009. Total revenues in the companys Electric segment were $5.6 million, compared with $4.2 million in 2009.

Our results for the quarter were stronger than we had anticipated, representing a solid start to the year and continued strength for both the Volcom and Electric brands, said Richard Woolcott, Volcoms chairman and chief executive officer. Combined with great product, focused marketing and solid distribution, we believe we are well positioned to capitalize on the many opportunities before us and pave the way for continued growth and success.


Consolidated gross profit for the 2010 first quarter was $42.0 million, equal to 54.2% of total revenues, compared with $34.4 million, equal to 50.3% of total revenues, in the first quarter of 2009.


Selling, general and administrative expenses on a consolidated basis were $31.0 million in the 2010 first quarter versus $28.0 million in the comparable period in 2009.


Net income for the 2010 first quarter was $7.5 million, equal to 31 cents per diluted share, compared with $4.2 million, or 17 cents per diluted share, in the first quarter of 2009


At March 31, 2010 the company had cash, cash equivalents and short-term investments totaling $109 million, and no long-term debt.


2010 Second Quarter Financial Outlook


For the 2010 second quarter, the company currently expects total consolidated revenues of approximately $59 million to $62 million and per share amounts to range from a loss of 2 cents to earnings of 2 cents.


 










































































































































































































































































































































































































VOLCOM, INC. AND SUBSIDIARIES
 

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except share and per share data)
 

 
         

Three Months Ended
March 31,


 

2010           2009
Revenues:
Product revenues $ 76,834 $ 67,944
Licensing revenues   586     375
Total revenues 77,420 68,319
Cost of goods sold   35,425     33,937
Gross profit 41,995 34,382
Selling, general and administrative expenses   31,008     28,034
Operating income 10,987 6,348
Other income:
Interest income, net 109 33
Foreign currency (loss) gain   (10 )     118
Total other income   99     151
Income before provision for income taxes 11,086 6,499
Provision for income taxes   3,552     2,279
Net income $ 7,534   $ 4,220
 
Net income per share:
Basic $ 0.31 $ 0.17
Diluted $ 0.31 $ 0.17
Weighted average shares outstanding:
Basic 24,356,857 24,347,857
Diluted 24,376,971 24,357,044