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Scott M. Bier, Vice President/Chief Financial Officer
Sylvia J. Castle, Investor Relations
Aldila, Inc., (858) 513-1801
FOR IMMEDIATE RELEASE
ALDILA REPORTS FINANCIAL RESULTS FOR
SECOND QUARTER 2008
Poway, CA, August 6, 2008 ALDILA, INC. (NASDAQ:GM:ALDA) announced today net sales of $13.6 million and a net loss of $523,000 ($0.10 fully diluted loss per share) for the three months ended June 30, 2008. In the comparable 2007 second quarter, the Company had net sales of $17.6 million and net income of $1.7 million ($0.30 fully diluted income per share). For the six months ended June 30, 2008, the Company had net sales of $30.3 million and a net loss of $65,000 ($0.01 fully diluted loss per share) as compared to $38.3 million and net income of $4.4 million ($.78 fully diluted income per share) for the six months ended June 30, 2007.
Our golf shaft sales declined 17% in the second quarter of 2008 versus the second quarter of 2007. The average selling price of our golf shafts decreased by 12% quarter on quarter on a 6% decline in unit sales. Composite materials sales were off 18% in the current quarter versus the 2007 quarter. In the 2007 quarter we had $1.1 million of hockey sales, a business line which we discontinued in 2007. Our gross profit in the 2008 quarter declined by 56% due to lower average selling prices for golf shafts and lower overall sales volumes of golf shafts and composite materials. Advertising and promotion spending have been heavily concentrated in the first half of this year to support the DVS® shaft line in the first quarter, and in the second quarter the pre-launch advertising of our new VooDoo shaft line set to begin sales in September of this year. The Company anticipates that its advertising and promotion spending will be reduced in the third and fourth quarters.
We are experiencing a marked slowdown in our sales driven by several factors impacting the golf equipment market, said Mr. Peter R. Mathewson, Chairman of the Board and CEO. Weak retail sales, poor weather, a lack of new product offerings by some of our customers, and the overall weak economic conditions are several factors impacting the golf equipment market. Looking at industry reports, 2008 equipment sales have been weak year to date and are forecasted to remain so through the remainder of the year. Through the first six months of 2008, the golf industry is experiencing a significant decline in sales of metal woods and iron sets. Our sales to several large customers, in particular, continued to be hurt by slowing sales of second selling season OEM programs. These customers have new shaft programs set to begin delivery late in the third quarter of 2008, Mr. Mathewson said.
Aldila is continuing to enjoy tremendous success on Tour. Players using Aldila shafts have won numerous events on the PGA, Nationwide, Champions and LPGA
The following information was filed by Aldila Inc on Wednesday, August 6, 2008 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.
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