Revenues Up, Despite Challenges For Summer Infant

Summer Infant, a Woonsocket based company that distributes products for babies and toddlers worldwide, announced financial results from the second quarter yesterday, with Chairman and CEO Jason Macari revising the company's outlook for 2011 to include an additional $5 million in expected revenue.

Despite $0.4 million in legal fees, an inventory write down related to the settlement of an intellectual property lawsuit, and a difficult consumer market, Macari said he is pleased with the company's second quarter operating performance.

"We continue to focus on the areas of our business that we can control, namely increasing retail distribution for our product portfolio and developing innovative new products that we believe will appeal to our target consumers," Macari said in a press release.

The company acquired the baby feeding brand BornFree in March of this year and has said that the integration of the new products is nearly complete, reporting approximately $4 million of sales in the second quarter from the BornFree brand.

The company's net revenues for the second quarter of 2011 were $61 million, a 23.3% increase from $49.5 million in the second quarter of 2010. Gross profit for the second quarter of 2011 was $20.2 million, compared to $18.5 million in the second quarter of 2010.

Net income,in the second quarter of 2011, however, was $0.9 million, or $0.05 per share, compared with $2.2 million, or $0.13 per share, in the second quarter of 2010. Costs, including acquisition expenses affected the comparability of the two years.

"Based on our second quarter results and current projections for the remainder of the year we are revising our outlook," Macari explained. "We now expect full year 2011 revenue to be in the range of $240-245 million, up from our previous expectation of at least $235 million."

The company attributes the growth to expanded product offerings and penetration into a larger number of stores within existing customers' networks.