Black Diamond 1Q revenue up, reports first profit
Black Diamond reported higher first-quarter 2011 revenue -- up 18 percent, compared to what its two brands -- Black Diamond Equipment and Gregory Mountain Products would have combined to report a year ago before the merger.
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Black Diamond Inc. (NASDAQ: BDE) reported higher revenue and a profit for the first quarter 2011 as it completed the merger and integration of its two brands, and moved forward with its apparel initiatives.
The Salt Lake City, Utah-based parent of Black Diamond Equipment and Gregory Mountain Products reported revenue of $39.1 million for the first quarter – up 18 percent from $33.1 million in pro forma sales from the two previously separate and private brands.
The revenue figure beat Black Diamond’s previous first-quarter revenue expectation of between $37 million and $38.5 million.
First-quarter net income totaled $1.2 million, or $0.05 per diluted share – the first quarterly profit for the newly merged public company as it dealt with its final merger costs, which included $800,000 this quarter. The company completed its relocation of Gregory’s office and warehouse, and a move to a new U.S. distribution facility, both in Salt Lake City.
Company officials also noted a decline in gross margin due to unfavorable foreign exchange rates in Europe, despite sales growth on a constant currency basis.
Separate from its earnings release, but also May 9, the company announced the hiring of Tim Bantle, formerly with Patagonia, to lead Black Diamond’s apparel initiative for 2013, which it announced earlier this year.
–Compiled by David Clucas
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