Cygne declares operations for Q2 & Six-Months 2005 results
14 Sep '05
3 min read
Operating results for the six months ended July 30, 2005 are not necessarily indicative of the results that may be expected for the fiscal year ended January 28, 2006.
Net loss for the second quarter ended July 30, 2005 was $426,000 or $0.03 on a basic and diluted per share basis, compared to a net income of $194,000 or $0.02 on a basic and diluted per share basis in the comparable prior period in 2004.
Net loss for the six months ended July 30, 2005 was $617,000 or $0.05 on a basic and diluted per share basis, compared to a net income of $100,000 or $0.01 on a basic and diluted per share basis in the comparable prior period in 2004.
As previously announced, Cygne acquired the branded and private label denim apparel business of Commerce Clothing Company LLC (whose name was subsequently changed to Diversified Apparel Resources, LLC), a privately-held company principally owned by Hubert Guez on July 31, 2005. The purchase price consists of (a) $2,000,000 in cash at the closing, (b) $1,750,000 in deferred purchase price payments (c) 10.5 million shares of Cygne common stock and (d) a subordinated secured promissory note of $47.5 million with a maturity date of April 30, 2012 at an annual interest rate of 4.7 percent, compounded annually.
In addition, Cygne has entered into a Supply Agreement and a Distribution Agreement with companies controlled by Guez, and a five-year renewable non-compete agreement with Guez. In connection with this acquisition, Cygne has entered into a Factoring Agreement with Milberg Factors Inc.
Cygne Designs Inc is a designer, merchandiser, and manufacturer of branded and private label women's denim, casual and career apparel with sales to retailers located in the United States.
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