Summer Infant reports greater loss, revenue dip, in 1Q

SUMMER INFANT saw its loss increase 37.6 percent in the first quarter to $333,000, or 2 cents per diluted share, from a loss of $242,000, or 1 cent per diluted share, in the 2015 first quarter.
SUMMER INFANT saw its loss increase 37.6 percent in the first quarter to $333,000, or 2 cents per diluted share, from a loss of $242,000, or 1 cent per diluted share, in the 2015 first quarter.

WOONSOCKET – Summer Infant Inc. saw its loss increase 37.6 percent in the first quarter to $333,000, or 2 cents per diluted share, from a loss of $242,000, or 1 cent per diluted share, in the first quarter of 2015.
The baby and juvenile product maker reported its first-quarter earnings after the market close on Thursday.
Revenue fell 6.3 percent to $49.7 million from $53 million.

“The first quarter of 2016 was an active one for us, as we introduced a number of new products and took further measures to strengthen our balance sheet and streamline the company’s operations,” CEO Bob Stebenne said in a statement. “While revenue was down year-over-year, reflecting the timing of product rollouts, we continued our marketing initiatives while reducing debt, managing costs and improving gross margins net of foreign exchange and demurrage expenses.”
“We believe the coming quarters will benefit from additional new product introductions – leading to higher top-line growth and overall improved operating results,” he said.
The first quarter included $1.4 million in connection with ongoing litigation.
Last spring, Summer Infant sued former CEO Carol Bramson, as well as two other former company executives and company consultants in federal court, alleging theft and misappropriation of trade secrets. Summer Infant alleged they were trying to create a competing company.
Summer Infant has since reached a confidential settlement with two of the defendants who were former consultants to the company.

General and administrative expenses totaled $10.8 million in the fiscal 2016 first quarter compared with $10.3 million in fiscal 2015. Excluding litigation costs, G&A in the first quarter would have been $9.4 million, a decrease of 8.9 percent from the prior-year period. The lower G&A reflects recent cost-reduction initiatives, and Summer Infant said it is on track to achieve $4 million in annualized savings this year.

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