Bernard Chaus Reports First Quarter Results

By: Bernard Chaus, Inc. via Business Wire News Releases

October 31, 2007 at 08:30 AM EDT

Bernard Chaus, Inc. (OTC Bulletin Board: CHBD) today reported its financial results for the first quarter of fiscal year 2008.

For the first quarter ended September 30, 2007, revenues were $35.5 million compared to $39.5 million in the first quarter last year. The Company’s net loss for the first quarter of fiscal 2008 was $354,000, or $0.01 per diluted share on a weighted average of approximately 37.4 million shares outstanding, compared to net income of $1.2 million, or $0.03 per diluted share on a weighted average of approximately 37.9 million shares outstanding, in the first quarter of fiscal 2007.

Josephine Chaus, Chairwoman and Chief Executive Officer, said, “As expected, the environment was challenging during the first quarter. We are focused on taking advantage of the opportunities we see in our branded, private label and licensed businesses, while navigating the difficulties of the current climate.”

Bernard Chaus, Inc., designs, sources and markets an extensive range of women’s career and casual sportswear, principally under the Josephine Chaus, Chaus, Cynthia Steffe and Cynthia Cynthia Steffe trademarks, as well as under certain private labels. The Company’s products are sold nationwide through department store chains, specialty retailers and other outlets. The Company also has a license agreement with Kenneth Cole Productions, Inc. for the manufacture and sale of a women’s sportswear line under the Kenneth Cole Reaction label.

This press release contains forward-looking statements that are based upon current expectations and involve a number of uncertainties including retail market conditions, success of new initiatives, the Company’s ability to effectively execute its business plan, consumer acceptance of the Company’s products, including the Kenneth Cole licensed products, and the ability to achieve anticipated profit margins. Further information on potential factors which could affect the Company’s financial results are included in the Company’s Form 10-K for the year ended June 30, 2007.

BERNARD CHAUS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars in thousands, except number of shares and per share amounts) (Unaudited)

	For the Quarter Ended
	September 30, 2007		September 30, 2006

Net revenue	$	35,546	$	39,509
Cost of goods sold		25,151		27,478
Gross profit		10,395		12,031

Selling, general and administrative expenses		10,430		10,430
Income (Loss) from operations		(35)		1,601

Interest expense, net		269		272

Income (Loss) before income tax provision		(304)		1,329
Income tax provision		50		85

Net Income (Loss)	$	(354)	$	1,244
Basic earnings (loss) per share	$	(0.01)	$	0.03
Diluted earnings (loss) per share	$	(0.01)	$	0.03

Weighted average number of common shares outstanding – basic
		37,381,000		37,516,000
Weighted average number of common and common equivalent shares outstanding – diluted
		37,381,000		37,924,000

BERNARD CHAUS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEET DATA (Dollars in thousands) (Unaudited)

	September 30, 2007		September 30, 2006

Cash and cash equivalents	$	112	$	56
Accounts receivable, net		27,163		27,138
Inventories, net		8,867		11,303
Prepaid expenses and other current assets		731		695
Total current assets		36,873		39,192
Fixed and other assets, net		2,771		3,515
Goodwill and trademarks		3,257		3,257
Total assets	$	42,901	$	45,964

Revolving credit borrowings	$	9,458	$	5,973
Accounts payable and accrued expenses		11,329		14,805
Term Loan - current		1,700		1,700
Total current liabilities		22,487		22,478
Term loan and other long-term liabilities		2,511 0		4,412 0
Total liabilities		24,998		26,890
Total stockholders’ equity		17,903		19,074
Total liabilities and stockholders’ equity	$	42,901	$	45,964

Contacts:

Bernard Chaus, Inc.
Bart Heminover, 201-863-4646
Chief Financial Officer
or
Kekst and Company
Wendi Kopsick/John Patteson, 212-521-4800