Talon International, Inc. reported unaudited consolidated financial results for the third quarter and nine months ended September 30, 2009. For the quarter, sales totaled $10.4 million, a decrease of $2.4 million or 18% from the third quarter of 2008. The decline in sales for the quarter from the same period in 2008 was a direct result of the global decline in the apparel industry. For the third quarter of 2009 the company reported Talon(R) zipper sales of $5.8 million as compared to $7.2 million for the same period in 2008. Trim product sales for the third quarter of 2009 were $4.6 million, as compared to $5.5 million for the same period in 2008, and Tekfit product sales for the third quarter were $10,000 compared to $95,000 in 2008. Third quarter year-to-year revenue comparisons were slightly better than the second quarter and the second quarter was improved over the first. Income from operations in the quarter were $200,908 compared to the loss from operations of $1,716,289 for the same period a year ago. Loss before provision for income taxes was $482,593 against $2,341,005 for the same period a year ago. The company reported a net loss of $647,000 or $0.03 per basic and diluted share, as compared to net loss of $2,440,000 or $0.12 per basic and diluted share for the third quarter in 2008. For the nine months, sales were $29.5 million as compared to $39.8 million for the same period in 2008, a decrease of $10.3 million or 26%. Talon(R) zipper sales for the first nine months of 2009 totaled $16.9 million as compared to $24.3 million in the prior year. Trim product sales for the first nine months of 2009 were $12.6 million, a decrease of $2.8 million from the same period in 2008. Tekfit product sales for the first nine months of 2009 were $47,000 compared to $139,000 for the first nine months of 2008. Income from operations in the nine months were $497,783 compared to the loss from operations of $1,975,648 for the same period a year ago. Loss before provision for income taxes was $1,483,756 against $3,793,008 for the same period a year ago. The company reported a net loss of $1.8 million or $0.09 per basic and diluted share, as compared to a net loss of $3.7 million or $0.18 per basic and diluted share for the nine months ended September 30, 2008.

Talon International, Inc. reported unaudited consolidated financial results for the second quarter and six months ended June 30, 2009. The global economic recession continued to significantly restrict consumer spending through the second quarter of 2009 and this translated into much lower demand for zipper and trim products. Although the initial panic within the apparel industry seems to have subsided, and encouraging signs are emerging, consumers remain cautious about their spending and the retail brands continue to limit their buying and lower their inventory levels. For the quarter, sales totaled $12.6 million, a decrease of $4.4 million or 26% from 2008. The decrease in sales for the quarter was a direct result of the impact of the economic decline on the apparel industry and the corresponding lower demand for the apparel products that brand suppliers purchase from the company. For the second quarter of 2009 the company reported Talon(R) zipper sales of $7.7 million as compared to $11.4 million for the same period in 2008. Trim product sales for the second quarter of 2009 were $4.9 million, as compared to $5.5 million for the same period in 2008, and Tekfit product sales for the second quarter were $23,000 compared to $36,000 in 2008. Income from operations was $832,045, income before provision for income taxes was $170,958 compared to the income from operations was $1,050,875, income before provision for income taxes was $407,745 for the same period a year ago. For the second quarter of 2009 net income of $75,000 or $0.01 per share was reported by the company, as compared to net income of $598,000 or $0.03 per share for the second quarter in 2008. For the six months, sales were $19.1 million as compared to $27.0 million for the same period in 2008, a decrease of $7.9 million or 29%. Talon(R) zipper sales for the first six months of 2009 totaled $11.0 million as compared to $17.1 million in the prior year. Trim product sales for the first six months of 2009 were $8.0 million, a decrease of $1.9 million from the same period in 2008. Tekfit product sales for the first six months of 2009 were $37,000 compared to $44,000 for the first six months of 2008. Income from operations was $296,875, loss before provision for income taxes was $259,359 compared to the loss from operations was $1,001,163, income before provision for income taxes was $1,452,003 for the same period a year ago. The company reported a net loss of $1.1 million or a loss of $0.05 per share, as compared to a net loss of $1.2 million or $0.06 per share for the six months ended June 30, 2008. The cost reduction actions, the company implemented late in 2008 in response to the economic decline have substantially lessened the impact of the significantly lower revenues in 2009. For the first six months of 2009, the benefits of these actions helped deliver expense reductions that more than offset the effects of the recession on sales levels.

Talon International, Inc., Q2 2009 Earnings Call, Aug 17 2009