Cherokee International Reports Second Quarter 2007 Financial Results
Cherokee International Corp. announced its financial results for the second quarter ended July 1, 2007. Net sales for the second quarter of 2007 were $29.6 million, down 23% compared to $38.3 million for the second quarter of 2006. Sequentially, net sales for the second quarter 2007 were down $0.4 million or 1% when compared to $30.0 million for the first quarter of 2007.
Net loss for the second quarter of 2007 was $1.7 million, or $0.09 per diluted share, compared to net income of $0.4 million, or $0.02 per diluted share, for the second quarter a year ago. The net loss was $0.4 million less sequentially than the $2.0 million net loss or $0.10 per diluted share in the first quarter of 2007. Gross profit for the second quarter was $5.6 million, down 32% compared to $8.1 million for the same period in 2006, and down 3% sequentially from the first quarter of 2007. Gross margin of 19% for the second quarter 2007 was down from the 21% realized in the second quarter of 2006 and flat from 19% sequentially in the first quarter of 2007.
Operating expenses were $8.1 million for the second quarter 2007 compared to $7.1 million for the second quarter of 2006, and $7.8 million for the first quarter of 2007. As a percentage of sales, operating expenses were 27% compared to 19% in the same quarter of 2006 and 26% sequentially for the first quarter of 2007.
"With our current backlog of $47.6 million, and over 45 designs coming out of our engineering teams, we anticipate a stronger second half of 2007," said Jeffrey M. Frank, Cherokee’s President and Chief Executive Officer.
For the six months ended July 1, 2007, net sales totaled $59.6 million, compared to $74.4 million for the same period in 2006. Net loss for the six months ended July 1, 2007 was $3.7 million, or $0.19 per diluted share, compared to net income of $1.2 million, or $0.06 per diluted share loss for the six months ended July 2, 2006.
