Exhibit 99.1
News Release
FOR: Marisa Christina, Incorporated
CONTACT: Michael Lerner
Chairman and Chief Executive Officer
(212) 221-5770
S. E. Melvin Hecht
Vice-Chairman and Chief Financial Officer
(201) 758-9800
FOR IMMEDIATE RELEASE
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MARISA CHRISTINA REPORTS FIRST QUARTER 2004 RESULTS
New York, New York, May 17, 2004 -- Marisa Christina, Incorporated
(Nasdaq: MRSA) today reported results for the first quarter ended March 31,
2004.
Net sales for the 2004 first quarter were $5.6 million compared with $5.3
million in the first quarter of 2003, a 5.9% increase, not withstanding the
elimination of a label during the later part of 2003 which had sales of $567
thousand in the first quarter of 2003.
Gross profit for the first quarter of 2004 was $1.4 million, compared with
the first quarter of 2003, when the gross profit was $1.8 million. Gross profit
as a percent of net sales decreased from 33.5% in the first quarter of 2003 to
25.3% in the first quarter of 2004, as a result of higher discounts provided to
certain major customers.
Operating expenses for the first quarter of 2004 were $1.8 million compared
with $2.1 million in the first quarter of 2003, a reduction of 12.8%.
The first quarter of 2004 showed a net loss of $276 thousand compared to a
net loss of $287 thousand in the first quarter of 2003.
Michael H. Lerner, Chairman of Marisa Christina, Inc. commented, "These
first quarter results are in line with our expectations. We believe that our
new aggressive sales strategies, our fresh looks in design and our constant
monitoring of expenses are leading Marisa Christina toward prosperity. While we
also anticipate a loss in the second quarter, which is historically the weakest
quarter, the third and fourth quarters are expected to bring us back to
profitability."
Marisa Christina, Inc. designs, manufactures, sources and markets a broad
line of high quality "better" clothing for women. The Marisa Christina label
includes sweaters characterized by classic, timeless styling and unique details.
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Except for historical information contained herein, the statements in this
release are forward-looking statements that are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and uncertainties
which may cause the Company's actual results in future periods to differ
materially from forecasted results. Those risks include, among others, risks
associated with the success of future advertising and marketing programs, the
receipt and timing of future customer orders, price pressures and other
competitive factors and a softening of retailer or consumer acceptance of the
Company's products leading to a decrease in anticipated revenues and gross
profit margins. Those and other risks are described in the Company's filings
with the Securities and Exchange Commission (SEC), copies of which are available
from the SEC or may be obtained upon request from the Company.
-Financial Table Follows-
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MARISA CHRISTINA, INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(In thousands, except per share amounts)
Three Months Ended
March 31,
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2004 2003
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Net sales $ 5,621 $ 5,307
Cost of goods sold 4,199 3,530
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Gross profit 1,422 1,777
Selling, general and administrative expenses 1,848 2,121
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Operating loss (426) (344)
Interest income, net 8 12
Other income, net 34 13
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Loss before income tax benefit (384) (319)
Income tax benefit (108) (32)
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Net loss $ (276) $ (287)
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Basic and diluted net loss per
weighted average common share $ (0.04) $ (0.04)
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Basic and diluted weighted average
common shares outstanding 7,295 7,295
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