Southwall Announces Q2 2009 Results

The year over year decrease was primarily due to a significant decline in sales of automotive products and the impact of generally lower demand across all markets due to the global economic downturn.
 
Second quarter 2009 net income was $1.5 million, or $0.04 per diluted share, as compared to net income of $2.3 million, or $0.07 per diluted share in first quarter 2009, and $2.3 million, or $0.07 per diluted share in second quarter 2008. Net income in the second quarter of 2009 included approximately $0.5 million of other income relating to the receipt of the final milestone payment under the Technology Transfer and Services agreement with Sunfilm. The first quarter of 2009 included a $2.4 million reversal of an accrued, long term reserve resulting from the final payment of the Company’s obligation under a settlement agreement.
 
Second quarter 2009 gross profit was $3.7 million, or 44% of net revenues, as compared $2.4 million, or 38% of net revenues, in first quarter 2009 and $5.7 million, or 42% of net revenues, in second quarter 2008. The Company posted income from operations of $0.9 million in the second quarter of 2009, as compared to $0.1 million in the first quarter 2009 and $2.8 million in the second quarter of 2008.
 
“While the global economic slowdown is having a visible impact on our core markets, we have reduced our debt and executed disciplined financial management to carry us through this period of financial uncertainty without compromising commitment to our key growth initiatives,” said Dennis Capovilla, Southwall’s President and CEO. “Despite the year over year sales decline, we have improved gross profit as we remain focused on providing our customers with a broad portfolio of high performance energy products that meet the growing global need for improved energy efficiency in green building and automotive design.”
 
About Southwall Technologies Inc.
 
Southwall Technologies Inc. is recognized as an innovator in the development and manufacture of high performance, energy-saving films and glass products that dramatically improve the energy efficiency of architectural and automotive glass. Southwall is an ISO 9001:2000-certified manufacturer with customers in over 25 countries around the world, including Audi, BMW, Guardian, Peugeot-Citroen, Pilkington, Renault, Saint-Gobain Sekurit, and Volvo.
 
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