On a pro-forma basis, net income for the year was $8.6 million compared with a pro-forma net loss of $8.7 million in 2004.
On a GAAP basis, gross margin for the year was 19.1 percent compared with 12.5% in 2004. Operating profit for 2005 was $13.5 million (or 6.5 percent of revenues) compared with $0.5 million (0.3 percent of revenues) in 2004. Net income for the year was $3.3 million compared with a net loss of $6.9 million in 2004.
Yos Shiran, CEO of Tefron, said, "2005 was a successful year for us, in which our efforts over the past few years have begun to pay off. We continued executing on our strategic plan, surpassed our targets of growth and increased our profitability. Tefron today is in a stronger position to capitalize on growth opportunities and market trends, while enjoying a strong and growing demand for its products."
Shiran continued, "Our cooperation with and sales to Nike grew substantially in 2005. Our relationship with Nike over 2005 became closer and broadened to a new level, and is an example of how our loyalty, commitment and dedication to our customers can be realized. We see great potential in this strengthening relationship, and this year we expect increased sales to Nike, as well as to our other customers."
Shiran concluded, "Moving into 2006, we are well positioned to build on our growth strategy. We intend to continue expanding our relationships with our existing customers and reach new value driven customers."
Tefron Ltd manufactures boutique-quality everyday seamless intimate apparel, active wear and swim wear sold throughout the world by such name-brand marketers as Victoria's Secret, Nike, The Gap, Banana Republic, Target, Warnaco/Calvin Klein, Patagonia, Reebok and El Corte Englese, as well as other well known retailers and designer labels.
marketing@alchempro.com
