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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
THIRD QUARTER 2008
Poway, CA, November 6, 2008 ALDILA, INC. (NASDAQ:GM:ALDA) announced today net sales of $11.8 million and a net loss of $1.1 million ($0.21 fully diluted loss per share) for the three months ended September 30, 2008. In the comparable 2007 third quarter, the Company had net sales of $13.2 million and net income of $687,000 ($0.12 fully diluted income per share). For the nine months ended September 30, 2008, the Company had net sales of $42.1 million and a net loss of $1.2 million ($0.22 fully diluted loss per share) as compared to $51.5 million and net income of $5.0 million ($0.90 fully diluted income per share) for the nine months ended September 30, 2007.
Golf shaft sales declined 5% in the third quarter of 2008 versus the third quarter of 2007. The average selling price of our golf shafts decreased by 2% on a 3% decline in unit sales. Composite material sales declined by 38% in the current quarter versus the 2007 quarter. Gross profit in the 2008 third quarter declined by 69% due to lower sales volumes of golf shafts and composite materials, lower average selling prices for our golf shafts, a shift in mix of our golf shaft sales to lower margin models and no contribution from Carbon Fiber Technology LLC, the Companys previously owned joint venture, which contributed 11.4% to our gross profit in the 2007 third quarter. Selling, General and Administrative (SG&A) expense declined by 16% compared to the second quarter of 2008 but was 5% higher compared to the third quarter of 2007 primarily due to increased promotional expenditures in support of new golf product introductions. We expect SG&A to continue to decline in the fourth quarter from the third quarter of 2008.
The golf market continues to deteriorate driven by global economic conditions, said Peter R. Mathewson, Chairman of the Board and CEO. With this negative back drop, our modest declines in sales, average selling price and units sold were not near as severe as what we experienced in the second quarter of this year. This improvement was the result of new programs by our customers slowly beginning to get underway, Mr. Mathewson said.
The Vietnam facility continues to gain operational experience. Qualifications on programs for several major customers have been completed with production under way. We continue to be impacted on the cost side by an overall decline in unit demand this year as our overall capacity has increased with the addition of the Vietnam factory. We continue to believe that our strategy is sound, built around our three shaft manufacturing sites located in Mexico, China and Vietnam and the reliable supply of raw material from
The following information was filed by Aldila Inc on Thursday, November 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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