UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549
FORM 8-K
CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) April 24, 2008
A. T. CROSS COMPANY (Exact name of registrant as specified in its charter)
Rhode Island (State or other jurisdiction of incorporation)		1-6720 (Commission File Number)		05-0126220 (IRS Employer Identification No.)
One Albion Road, Lincoln, Rhode Island (Address of principal executive offices)			02865 (Zip Code)
Registrant's telephone number, including area code (401) 333 1200 N/A (Former name or former address if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]	Pre-commencement communications pursuant to rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]	Pre-commencement communications pursuant to rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Section 2 - Financial Information

Item 2.02 - Results of Operations and Financial Condition.

On April 24, 2008, the registrant issued the following press release announcing financial results for the three months ended March 29, 2008:

News Release

CONTACTS:	Kevin F. Mahoney Vice President, Finance and Chief Financial Officer 401-335-8470
	Integrated Corporate Relations James Palczynski 203-682-8229

FOR IMMEDIATE RELEASE

A.T. CROSS COMPANY REPORTS STRONG
FIRST QUARTER RESULTS

Consolidated Net Sales increase 11.3%
First Quarter EPS increased to $0.04 versus $0.01 a year-ago
Both operating segments perform well
Native Eyewear acquisition closed on March 24, 2008

Lincoln, RI - April 24, 2008 - A.T. Cross Company (AMEX: ATX) today announced financial results for the first quarter ended March 29, 2008.

Consolidated sales for the first quarter of 2008 increased 11.3% to $36.3 million compared to $32.6 million in the first quarter of 2007. The Cross Accessory Division recorded revenue of $26.5 million, up 7.4% compared to the same period last year. The Cross Optical Segment, which included five days of the recently acquired Native Eyewear business, had a first quarter sales increase of 23.5% to $9.7 million, compared to the same period last year.

Gross margin in the first quarter was 55.1% versus 56.4% last year. The Company still expects full year gross margins to improve 100 basis points over 2007. Operating expenses were $19.0 million, or 52.3% of sales in the quarter, versus $18.1 million, or 55.5% of sales for the same period a year ago. This ratio improvement was driven by an ongoing focus on cost control and the achievement of some economies of scale on the sales growth. Consolidated operating income in the first quarter was $1.0 million versus $0.3 in the first quarter of last year.

Net income for the first quarter, which is the Company's seasonally slowest period, was $0.6 million, or $0.04 per diluted share, compared to $0.1 million, or $0.01 per diluted share, last year.

David G. Whalen, President and Chief Executive Officer of A.T. Cross said, "We continue to make progress on each of our core strategies: to grow our business organically, to make accretive acquisitions, to improve our profitability and to unlock the benefits of scale in our optical business. We are proud to continue to execute well even in the face of challenging retail trends. The global diversification of the Cross business and the power of both the Cross and Costa Del Mar brands continue to protect our opportunity. We believe that the stage is set for another successful year for our company."

Balance Sheet and Cash Flow

The Company's first quarter balance sheet reflects the acquisition of Native Eyewear, Inc, which was financed by utilizing approximately $19 million of bank financing. Cash flow from operations during the first quarter of 2008 was $5.4 million greater than the prior year's first quarter. Also, during the current quarter the CAD division made progress towards its full year inventory reduction goal of approximately $3 million as the CAD division's inventory was $1.2 million below year end 2007.

Guidance

The Company commented that its prior forecast for net sales growth and earnings per share did not reflect a contribution from the recently announced acquisition of Native Eyewear. To adjust, the Company has raised its target for net sales growth to 10% to 12% versus a prior range of 6% to 8% and it now believes an appropriate target for full year 2008 earnings per share would be in the range of $0.49 to $0.51. The Company noted that it continues to believe that Native's contribution to earnings per share in fiscal 2009 would be approximately $0.07 per share.

Conference Call

The Company's management will host a conference call today, April 24, 2008 at 4:30 PM Eastern Time. Parties interested in participating in the conference call may dial-in at (888) 287-5532, while international callers may dial-in at (719) 955-9039. A live webcast of the call will be accessible on the Company's website at www.cross.com or www.viavid.net. The webcast will be archived for 30 days on these sites, while a telephone replay of the call will be available beginning at 7:30 PM Eastern Time on April 24, 2008 through May 1, 2008 at (888) 203-1112 or (719) 457-0820 for international callers, and entering the pass code of 5862473.

About A.T. Cross Company

Building on the rich tradition of its award-winning writing instruments and reputation for innovation and craftsmanship, A.T. Cross Company is a designer and marketer of branded personal and business accessories. Cross provides a range of distinctive products that appeal to a growing market of consumers seeking to enhance their image and facilitate their lifestyle. A.T. Cross products, including award-winning quality writing instruments, timepieces, business accessories and Costa Del Mar sunglasses, are distributed in retail and corporate gift channels worldwide. For more information, visit the A.T. Cross website at www.cross.com, Costa Del Mar's website at www.costadelmar.com and the Native Eyewear website at www.nativeyewear.com.

Statements contained in this release that are not historical facts are forward-looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 (including but not limited to statements relating to gross margins, the strength of the Company's brands and the expected performance of Native Eyewear). In addition, words such as "believes," "anticipates," "expects," and similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to risks and uncertainties, including but not limited to uncertainties arising from operating a new business and the continued challenging retail environment in the United States, and are not guarantees since there are inherent difficulties in predicting future results. Actual results could differ materially from those expressed or implied in the forward-looking statements. The information contained in this document is as of April 24, 2008. The Company assumes no obligation to update any forward-looking statements contained in this document as a result of new information or future events or developments. Additional discussion of factors that could cause actual results to differ materially from management's expectations is contained in the Company's filings under the Securities Exchange Act of 1934.

 

(Tables to follow)

 

A. T. CROSS COMPANY CONSOLIDATED STATEMENTS OF INCOME (in thousands, except per share amounts) (unaudited)
				Three Months Ended
				March 29, 2008			March 31, 2007
Net sales				$ 36,257			$ 32,572
Cost of goods sold				16,286			14,200
Gross Profit				19,971			18,372
Selling, general and administrative expenses				16,734			15,879
Service and distribution costs				1,651			1,454
Research and development expenses				573			599
Restructuring charges				-			152
Operating Income				1,013			288
Interest and other (expense) income				( 47	)		( 40	)
Income Before Income Taxes				966			248
Income tax provision				364			125
Net Income				$ 602			$ 123
Net Income per Share:
Basic				$ 0.04			$ 0.01
Diluted				$ 0.04			$ 0.01
Weighted Average Shares Outstanding:
Basic				15,070			14,778
Diluted				15,423			15,303
				Three Months Ended
				March 29, 2008			March 31, 2007
Segment Data:		Cross Accessory Division
	Net Sales			$ 26,529			$ 24,693
	Operating Loss			( 17	)		( 367	)
Segment Data:		Cross Optical Group
	Net Sales			$ 9,728			$ 7,879
	Operating Income			1,030			655

A.T. CROSS COMPANY CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, unaudited)
				March 29, 2008			March 31, 2007
	Assets
		Cash and cash equivalents		$ 15,501			$ 20,024
		Accounts receivable		28,762			24,839
		Inventories		33,931			28,544
		Deferred income taxes		5,254			5,105
		Other current assets		6,760			5,366
		Total Current Assets		90,208			83,878
		Property, plant and equipment, net		17,438			13,688
		Goodwill		16,411			7,288
		Intangibles and other assets		14,917			5,443
		Deferred income taxes		8,301			8,712
		Total Assets		$ 147,275			$ 119,009
	Liabilities and Shareholders' Equity
		Accounts payable and other current liabilities		$ 25,237			$ 23,533
		Retirement plan obligations		2,182			2,029
		Total Current Liabilities		27,419			25,562
		Long-term debt		21,721			4,000
		Retirement plan obligations		4,981			7,515
		Deferred gain on sale of real estate		4,171			4,693
		Other long term liabilities		3,314			2,752
		Accrued warranty costs		1,342			1,308
		Shareholders' equity		84,327			73,179
		Total Liabilities and Shareholders' Equity		$ 147,275			$ 119,009
For information at A. T. Cross contact:
	Kevin F. Mahoney
	Vice President, Finance and Chief Financial Officer
	(401) 335-8470
	kmahoney@cross.com

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	A. T. CROSS COMPANY (Registrant)
Date: April 24, 2008	KEVIN F. MAHONEY (Kevin F. Mahoney) Vice President, Finance Chief Financial Officer