Smith & Wesson Holding Corporation (NASD: SWHC), a manufacturer of handguns, law enforcement products, and firearm safety and security products, recently announced its financial results from the fiscal first quarter ended July 31, 2008. Shares opened lower late last week after the company reported quarterly net income of $2.3 million, or $0.05 per fully diluted share, compared with $4.7 million, or $0.11 per fully diluted share, for the comparable period in 2007.
Net product sales totaled $78.0 million, a $3.6 million or 4.9 percent year-over-year increase over net product sales for the fiscal first quarter of 2007. The company’s president and chief executive officer, Michael F. Golden, commented during a conference call last week and stated, “The first quarter was certainly challenging, and despite continuing economic pressures and the obvious impact it had on rifle and shotgun product sales, we delivered solid results in our handgun product categories throughout all of our channels.”
Mr. Golden further stated that federal government and military channels also expanded during the first quarter and the company’s international channel reported significant growth of 74 percent. The company’s management team will continue to review opportunities to expand in firearms and non-firearms businesses that build brand awareness and strength and ultimately increase market share.
Let us hear your thoughts below: