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Gatorz Reports Third Quarter and Year-to-Date Losses

December 14, 2011 12:25 AM

MURRIETA, Calif.—Performance eyewear company Gatorz Inc. (CA: GTZ) reported decreases in revenue in its financial results for the third quarter and year-to-date periods ending Sept. 30, 2011. Third quarter revenue decreased by $34,714 to $449,052 from the same quarter last year, primarily due to a decrease in sales to a customer that declared bankruptcy, according to company reports. An overall loss of $195,948 was “mostly due to increases in personnel, implementation of a new accounting system and a move to a new location,” stated the company, which added, “Earnings were affected by decreased sales, a write-down in inventory, as well as an increase in discounts on product sales.” A total comprehensive loss of $180,121 included a foreign exchange gain of $35,369 from the U.S. dollar in comparison to the Canadian dollar.

For the first nine months of 2011, revenue decreased by $22,942 to $1,373,644 from the same period last year, again due to the decrease in sales to a customer that declared bankruptcy, according to the company. An overall operations loss of $166,208 was attributed mostly to a decrease in gross profit margins as well as increases in personnel and moving costs. Total comprehensive loss for the period was $226,314, which included a foreign exchange gain of $1,336. The company also completed a private placement of $455,500 and a convertible debt offering that raised $425,000.

Business developments during the first three quarters of 2011 included the introduction of Italian-made, injection-molded sunglasses to reach a previously unavailable demographic as well as a new corporate branding strategy that included a new Gatorz logo, company color and website platform. The company moved its head offices and terminated its shared services agreement with No Fear.
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